In today’s briefing:
- NIFTY Bank Index: Methodology Changes Announced; US$1.4bn Trade in Tranches
- Meesho Ltd Pre-IPO – Mass-Market Player Scaling on Low-Cost, High-Frequency Commerce
- The Beat Ideas: Dodla Dairy: A Story of Value Added Products & Premiumisation
- The Beat Ideas: Welspun Corp – The Three-Continent Infrastructure Proxy, Rerating Beyond Cyclicality
- Meesho IPO: Garmenting a Mass Market Play for Long-Term Growth
- Zydus Lifesciences: The PBC Catalyst, From Generics Volume to Specialty Value
NIFTY Bank Index: Methodology Changes Announced; US$1.4bn Trade in Tranches
- NSE Indices has announced the methodology changes for the NSE Nifty Bank Index (NSEBANK INDEX) that will be implemented in 4 tranches starting in December.
- Yes Bank (YES IN) and Union Bank Of India (UNBK IN) will be added to the index to increase the number of constituents from 12 to 14.
- Passives need to sell HDFC Bank (HDFCB IN) and ICICI Bank Ltd (ICICIBC IN) while buying all the other stocks in the index.
Meesho Ltd Pre-IPO – Mass-Market Player Scaling on Low-Cost, High-Frequency Commerce
- Meesho Ltd (1546271D IN) is looking to raise around US$607m in its upcoming India IPO.
- Meesho is an e-commerce marketplace, offering a wide assortment of products ranging from low cost unbranded products, regional and national brands at affordable prices to consumers.
- In this note, we talk about the company’s historical performance.
The Beat Ideas: Dodla Dairy: A Story of Value Added Products & Premiumisation
- Dodla is entering a new growth phase with its Maharashtra plant, OSAM integration, premium value-added products, and stronger Africa operations, supported by a solid procurement network.
- With over 94% direct milk sourcing, better farmer yields through Orgafeed, and a rising VAP mix, Dodla is building a high-return, self-funded growth model.
- As capex peaks and free cash flows inflect post-FY27, Dodla is transitioning into a structurally compounding dairy platform with improving mix, margins, and regional balance.
The Beat Ideas: Welspun Corp – The Three-Continent Infrastructure Proxy, Rerating Beyond Cyclicality
- The record INR23,500 Cr order book, anchored by a structural demand shift for US data center gas pipelines, validates the company’s large-scale global capex strategy in the US and KSA.
- The pivot from cyclical line pipes to stable B2C (Sintex) and structurally funded growth drivers (Vision 2030, AI energy) fundamentally de-risks the earnings profile and warrants a higher valuation multiple.
- With net cash and improving ROCE, WCL is transitioning from a cyclical steel player to a quality infrastructure compounder; investors should focus on the strategic segment mix and execution speed.
Meesho IPO: Garmenting a Mass Market Play for Long-Term Growth
- Meesho IPO will comprise a fresh issue of INR42.5B, and an OFS of 105.5M shares. The price band of the IPO has been fixed between INR105 and INR111 per share.
- Meesho’s IPO will open for subscription on Wednesday, December 3 and close on Friday, December 5. The IPO is scheduled to list on the stock exchanges on Wednesday, December 10.
- Meesho intends to utilize IPO proceeds for investment for cloud infrastructure, paying salaries of technology team, marketing and brand building initiative, and acquisition. The IPO is suitable for risk-seeking investors.
Zydus Lifesciences: The PBC Catalyst, From Generics Volume to Specialty Value
- Zydus is shifting its business from US generics toward sustained, high-margin revenue. This growth is driven by its specialty pipeline, chronic Indian business, and MedTech.
- The successful Phase 2(B)/3 trial of Saroglitazar for Primary Biliary Cholangitis (PBC) is the key near-term catalyst, promising a long-duration, high-margin revenue stream in the US specialty market.
- The transition to an innovation-led portfolio evidenced by robust pipeline, strong chronic growth in India, and the MedTech acquisition positions Zydus for a potential re-rating as earnings quality improves.
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