In today’s briefing:
- The Beat Ideas: Northern Arc Capital – A Niche Player in a Crowded Field?
- Saatvik Green IPO – Making Hay While the Sun Shines on Valuations
The Beat Ideas: Northern Arc Capital – A Niche Player in a Crowded Field?
- Northern Arc is fast shifting toward direct retail Lending (D2C), while leveraging originator partnerships and technology; recent rate cuts and regulatory relief are improving cost of funds & capital efficiency.
- Northern Arc’s mix of structured finance, co-lending, and fund management creates steady fee income, making it more resilient than traditional NBFCs relying mainly on heavy lending assets.
- Northern Arc is a differentiated NBFC benefits from inclusion & fintech growth, but valuation relies on retail execution, risk control, and asset quality pressures.
Saatvik Green IPO – Making Hay While the Sun Shines on Valuations
- Time for another Solar Photovoltaic module manufacturer to list undeterred by the tepid listing for Vikram Solar
- Largely a commoditised business with a potential technological threat. Solar PV companies in India continue to trade at exceptional valuations of 20-30 times trailing EBITDA
- Saatvik, despite being smaller in scale vs peers and in face of intensifying competition is being priced at 14-15 times our FY27E EBITDA (peers trade at 14-16x)
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