Daily Brief India: LG Electronics India, Milky Mist Dairy Food Ltd, Kalyan Jewellers, Poonawalla Fincorp, Eveready Industries India, RKCPL Ltd and more

• LG Electronics (066570 KS) is looking to raise US$1.3bn 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, as per Redseer Report.
• We have looked at the company’s past performance and undertaken a peer comparison in our previous note. In this note, we talk about valuations.

• LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.3 billion through a secondary offering.
• I previously discussed the IPO in LG Electronics India IPO: The Bull Case, LG Electronics India IPO: The Bear Case and LG Electronics India IPO: Updates Support the Bull Case. 
• My valuation analysis suggests that the IPO price range of Rs1,080-1,140 per share is attractive. Therefore, I would participate in the IPO.

• Milky Mist Dairy Food Ltd (1023949D IN) is looking to raise about US$237m in its upcoming India IPO.
• Milky Mist Dairy Food Ltd (MMDFL) is a value-added dairy and packaged food manufacturer focused on premium products such as paneer, cheese, curd.
• In this note, we look at the company’s past performance.

• Kalyan is aggressively expanding its non-South presence and scaling its omni-channel platform, Candere, driven by an asset-light, franchisee-owned, company-operated (FOCO) model.
• The FOCO model and a higher margin studded-jewellery mix in new markets are structurally improving return ratios and freeing up capital for aggressive, low-risk store rollouts.
• With significant deleveraging and a clear path to enhanced profitability, the fundamental story remains intact, nudging investors to look beyond cyclical factors and towards execution consistency.

• Transformed Business Model: Following the acquisition by the Poonawalla Group, the company has pivoted from its legacy as Magma Fincorp to a tech-driven NBFC. It now focuses on prime retail consumers and MSME segments with a digital-first approach, significantly improving its risk profile and operational efficiency.
• Strong Parentage and Financial Flexibility: Backed by the Cyrus Poonawalla Group, the company benefits from a strong brand, significant capital infusion, and access to lower-cost funding. This has resulted in a ‘AAA’ credit rating and provides a substantial competitive advantage in the crowded NBFC space.
• Aggressive Growth Strategy: Management has outlined a clear vision for rapid expansion, aiming to significantly grow its Assets Under Management (AUM) by diversifying its product suite and expanding its distribution network. The strategy focuses on a mix of secured and unsecured loans to maintain a balanced risk-adjusted return.

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• LG Electronics (066570 KS)  is selling 15% stake in Indian subsidiary LG Electronics India (123D IN). Interestingly, the market cap of Indian subsidiary shall now be equal to Korean parent
• Indian listed markets have hitherto offered selective consumer appliance plays. LGEI will become the largest of them all, offering access to the structural growth of consumer appliances in India
• IPO is priced attractively at 26-30x 1yr forward earnings. Near-term performance to benefit from recently announced indirect tax cuts as well as rate cuts. Must Apply

Key points (machine generated)

• Eveready Industries has transformed under the Burman family’s leadership after previous mismanagement by the Khaitans.
• The Burmans implemented aggressive marketing and strategic investments, leading to earnings growth and reduced net debt by 22%.
• Despite positive developments, the company’s share price has only increased by 10% over three years, indicating a potential investment opportunity.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• RKCPL Ltd (RKCPL IN) is looking to raise about US$141m in its upcoming India IPO. The deal will be run by Equirus and Anand Rathi.
• RKCPL is an Indian civil construction and infrastructure development company with experience in executing specialized structural works including elevated roads, flyovers, bridges, road-over-bridges, highways, expressways, drainage systems, and canal systems.
• According to the CRISIL report, it ranked second highest in both ROE and ROCE among its peers in FY25.