In today’s briefing:
- Hexaware Technologies IPO: The Bull Case
- Sify Technologies: Unlocking Value with Data Centre IPO
- Sify Technologies: Positive Beneficiary of the Potential IPO of Sify Infinit Spaces
- Deepak Fertilisers Limited: Q3 FY25 Performance Analysis
- Ganesha Ecosphere Limited: Q3 FY25 Quarterly Update
- Himadri Speciality Chemical Ltd: Q3 & 9M FY25 Performance Analysis
- Kent R O Systems Ltd Pre-IPO Tearsheet
Hexaware Technologies IPO: The Bull Case
- Hexaware Technologies (HEXW IN), an Indian mid-sized global IT services company, aims to raise up to US$1.0 billion.
- BPEA privatised Hexaware in 2020. In 2021, Carlyle won an auction to acquire a 95.51% stake in Hexaware.
- The bull case rests on sold revenue growth, reducing customer concentration, high utilization, low attrition rates, high customer satisfaction scores and top-tier cash generation.
Sify Technologies: Unlocking Value with Data Centre IPO
- Sify Technologies (SIFY US) is planning a Rs. 3,000 crore IPO for its data centre subsidiary, Sify Infinite Spaces, aiming to unlock significant hidden value and realign its market valuation.
- The IPO underscores rapid growth in India’s data centre market, driven by Digital India and 5G, offering a strategic edge with lower capital costs versus global peers.
- Investors can capitalize on a notable valuation arbitrage, as Sify’s data centre arm is vastly undervalued compared to the parent’s market cap, promising long-term upside.
Sify Technologies: Positive Beneficiary of the Potential IPO of Sify Infinit Spaces
- The potential IPO of Sify Infinite Spaces is likely to have a positive impact on Sify Technologies.
- The overall market size of data centers in India is huge and Sify Infinite Spaces certainly has the experience and capability to become one of the leaders in this segment.
- Despite attractive market opportunity, there will be some investors that will question the overall valuation levels of Sify Infinite Spaces to justify seeking nearly 30 billion INR in the IPO.
Deepak Fertilisers Limited: Q3 FY25 Performance Analysis
- Deepak Fertilisers & Petro (DFPC IN) Q3 FY25 saw revenue rise 39% YoY, EBITDA up 72%, and net profit 318% YoY, driven by expansion and a shift to specialty products.
- Company saw significant volume growth across segments except crop nutrition segment.
- Company is under restructuring exercise, which will demerge all the different segment and unlock value over longer term.
Ganesha Ecosphere Limited: Q3 FY25 Quarterly Update
- Ganesha Ecosphere (GNPL IN)’s Q3 FY25 revenue surged 39.6% YoY to ₹397.8 crores, with production volume up 22.3% YoY, and capacity expansions underway.
- Strong revenue growth and capacity expansions enhance GEL’s market position amid rising global demand for sustainable PET recycling.
- Investors gain confidence in GEL’s strategic shift towards high-value recycled products and international market expansion, promising long-term sustainability.
Himadri Speciality Chemical Ltd: Q3 & 9M FY25 Performance Analysis
- Himadri Speciality Chemical (HSCH IN) delivered strong Q3 and 9M FY25 performance, with revenue, EBITDA, and PAT rising significantly, and launched major capacity expansions and new high-value product investments.
- Himadri is set to capitalize on growing EV and lithium-ion battery markets, enhancing long-term profitability and sustainability.
- Company acquired Birla tyre and also took more than 10% stake in Sicona, an Australian startup specializing in silicon anode technology, which will drive further growth once stabilise.
Kent R O Systems Ltd Pre-IPO Tearsheet
- Kent R O Systems (6592700Z IN) (KROS) is looking to raise about US$100m in its upcoming India IPO. The bookrunners for the deal are Motilal and JM Fin.
- KROS was established in 2007. The brand ‘Kent’ is a leader in the water purifier market in India, recognized for being a pioneer in introducing reverse osmosis (RO) technology.
- Kent’s water purifiers hold the NSF/ANSI 58 certification, an American national standard for point-of-use reverse osmosis systems, as per Technopak Report.
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