In today’s briefing:
- HDFC Bank (HDFCB IN): Ready for the Rally with Tactical Low-Cost Options
- Physicswallah Ltd Pre-IPO Tearsheet
- The Beat Ideas- SRM Contractors: A Niche Play in India’s Infrastructure Push
- Zinc Rally – Supply-Led Momentum Near US$3,000/T: Can It Last?
- The Beat Ideas: Styrenix Performance Ltd – Unlocking Synergies with Acquisition of INEOS Thailand
- Much Expected, Much Priced In — Why Urban Company Has Little Upside Left?
HDFC Bank (HDFCB IN): Ready for the Rally with Tactical Low-Cost Options
- Context:HDFC Bank (HDFCB IN) remains in a bullish setup. Quantitative models highlight further upside potential in the near term and identify key support levels.
- Trade Idea: With implied volatility near multi-year lows (12th percentile), long call strategies are favored. Suitable expiries and strikes are outlined, with an alternative structure discussed for reducing premium outlay.
- Why Read: This Insight combines directional analysis with volatility signals, highlighting a tactical options strategy where low implied volatility and bullish probabilities align, offering investors defined risk/reward.
Physicswallah Ltd Pre-IPO Tearsheet
- Physicswallah Limited (2076103D IN) is looking to raise about US$434m in its upcoming India IPO. The deal will be run by Axis, Kotak, GS, and JPM.
- Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
- According to Redseer, PWL was among the top-five education companies in terms of revenue in India and one of the fastest-growing companies in terms of revenue growth during FY22-24.
The Beat Ideas- SRM Contractors: A Niche Play in India’s Infrastructure Push
- SRM Contractors (SRM IN)‘s strategic focus on high-margin projects like tunnels and slope stabilization, positions it to benefit from the government’s infrastructure push.
- Company has given guidance of INR 900Cr of revenue and 500bps margin improvement in the coming year.
- Order book reached a record INR 1,476 crore as of Aug-25, giving strong revenue visibility for the next two to three years, equivalent to approximately 2.8 times its FY25 revenue.
Zinc Rally – Supply-Led Momentum Near US$3,000/T: Can It Last?
- Supply-Led Rally: Zinc has rebounded ~15% to ~US$3,000/t, driven by mine curtailments, smelter shutdowns, collapsing TCs, and low inventories.
- China Stimulus Tailwind: Beijing’s CNY 1tn package lifts sentiment for galvanised steel, which makes up ~60% of zinc demand, reinforcing price momentum.
- Valuation Impact: Hindustan Zinc justifies a premium on pure-play exposure, while Vedanta offers cheaper diversified optionality; sustainability of prices above US$3,000/t remains the key investor question.
The Beat Ideas: Styrenix Performance Ltd – Unlocking Synergies with Acquisition of INEOS Thailand
- Styrenix, after returning to promoter control, is stepping up capacity expansion and riding demand tailwinds from ABS, SAN, PS driven by white goods, automotive, and packaging.
- India’s demand for styrene‐based polymers is accelerating (styrene demand projected 15% growth in FY2025-26) and government policy (Atmanirbhar, petchem investment) is increasingly favorable.
- Styrenix offers a strong lever to India’s structural growth in engineering plastics, but valuation must account for margin cyclicity, FX exposure, and capex risk.
Much Expected, Much Priced In — Why Urban Company Has Little Upside Left?
- Urban Company has delivered FY25 profitability and strong revenue growth, its IPO was oversubscribed ~100×, listing at ~57–58% premium. But many growth levers are now under pressure.
- At its current price, even modest slippages (in margin, in expansion pace, in competition) could sharply reduce returns. The risk/reward seems tilted towards downside in near‑to‑mid term.
- Investors should watch closely how UC executes outside its “easy” markets (Tier‑1 / large cities), how it manages competition and costs, and whether post‑IPO lock‑ups/quarterly earnings present buying windows.
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