Daily Brief India: FirstCry, Sula Vineyards, Pepperfry, ABM Investama, Central China Real Estate and more

• FirstCry (0172540D IN) is one of the leading and only surviving Omni channel retailer that specialises in baby products. 
• Channel feedback is positive, the strategy of opening company-owned and operated stores, and segregating online and offline operations is working well.  
• Increasing revenues, profitable operations and limited competition make FirstCry a compelling narrative that should be on the watchlist. 

• Sula Vineyards (1332009D IN) is looking to raise about US$175m in its upcoming India IPO. The deal will be run by Kotak, CLSA and IIFL Securities.
• Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”. 
• Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

• Pepperfry (0096696D IN) is one of the largest furniture and home decor marketplaces in India. Recently also started offering appliances to serve as a one-stop home shop. 
• Our channels indicate higher AOVs and different customers compared to Swedish giant IKEA. Marketplaces like Pepperfry solve the problem of discovery for customers looking for furniture in a new location. 
• The WFH tailwind is fading away. With revenues declining, profitability is distant, and with the financial position that is yet to improve caution is warranted.  

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