In today’s briefing:
- IndusInd Bank- Never Ending Trouble
- Asian Paints: Navigating Growth Challenges Amid Evolving Industry Dynamics
- GMDC (GMDC IN): Steady Core Performance with Hidden Asset Optionality
- Akzo Nobel India [India M&A]: JSW Likely Buyer – Investors Should Assess Strategic Impact
IndusInd Bank- Never Ending Trouble
- Indusind Bank (IIB IN) does not seem to be able to get out of hot water.
- In yet another accounting and governance pothole, the bank has disclosed a surprising take on interest income, which was overstated by INR 6.7 bn.
- The internal audit department also reported unsubstantiated balances of INR 6 bn in other assets, which was netted off with liabilities.
Asian Paints: Navigating Growth Challenges Amid Evolving Industry Dynamics
- Q4 FY25 volumes grew 1.8%, value declined; FY26 guidance is for low growth with 18–20% margins supported by integration and cost control.
- Grasim and JSW are aggressively expanding with large capex and dealer networks, intensifying pricing pressure in decorative paints.
- Stock corrected 15–20% but still trades at ~55x P/E, which remains expensive given slowing growth and rising competitive risks.
GMDC (GMDC IN): Steady Core Performance with Hidden Asset Optionality
- GMDC delivered strong FY25 results with 8MT of lignite sales and Rs992 crore in EBITDA, its second-best performance.
- The company is focused on scaling lignite and coal volumes through new mines within Gujarat and Odisha. It also plans to diversify into rare earths and critical minerals.
- While valuations appear slightly elevated, upside optionality exists from the revival of Akrimota power plant and operationalization of new mines.
Akzo Nobel India [India M&A]: JSW Likely Buyer – Investors Should Assess Strategic Impact
- Akzo Nobel N.V. earlier announced its plans to exit India to focus on core markets where it holds a position of “differentiating scale.
- JSW Paints has reportedly entered exclusive talks to acquire Akzo India, edging out Advent–Indigo and Pidilite.
- Shareholders may tender in the open offer or stay invested for potential upside via JSW which has a long stellar track-record.
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