Daily Brief India: Kalyan Jewellers, Natco Pharma, LG Electronics India and more

In today’s briefing:

Forensic Analysis: Kalyan Jewellers on Allegations and Rumours ~ Cause And Reality
The Beat Ideas: Natco Pharma, The Cheapest Pharma Stock
LG Electronics India Pre-IPO – The Negatives – Not All Categories Have Been Growing

Forensic Analysis: Kalyan Jewellers on Allegations and Rumours ~ Cause And Reality

Steep decline in the stock price triggered a wave of speculation and rumours, further fueling the negative sentiment surrounding Kalyan Jewellers (KALYANKJ IN).
The rumours ranged from serious allegations of inventory overvaluation and IT raids to concerns about changes in franchisee agreements and even accusations of bribery.
While Kalyan Jewellers (KALYANKJ IN) has dismissed the overvaluation allegations, its inventory turnover ratio (ITR) has consistently lagged behind the industry leader Titan Co Ltd (TTAN IN) .

Natco Pharma (NTCPH IN) is pivoting toward niche, high-value generics like Revlimid and Semaglutide, leveraging robust R&D, strategic acquisitions, and geographic expansions for long-term market leadership.
This approach combats conventional generic pricing pressures, delivers stronger profit margins, and positions Natco for sustainable, innovation-driven success in increasingly competitive regulated markets.
Natco’s willingness to tackle complex molecules and patent challenges demonstrates resilience, signaling a more diversified pipeline, prudent capital use, and potential for robust shareholder returns.

LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
In this note, we talk about the not-so-positive aspects of the deal.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network