In today’s briefing:
- National Securities Depository Limited (NSDL) IPO – Peer Comparison and Thoughts on Valuation
- Hitachi Energy India (POWERIND IN): Powering into a Global Index in August
- Aditya Infotech: Niche Opportunity at Fair Valuations but Concerns Lurk
National Securities Depository Limited (NSDL) IPO – Peer Comparison and Thoughts on Valuation
- NSDL (NSDL IN) is looking to raise around US$460m in its upcoming India IPO.
- It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.
- In this note, we undertake a peer comparison and talk about valuations.
Hitachi Energy India (POWERIND IN): Powering into a Global Index in August
- A big rally in Hitachi Energy India (POWERIND IN) this year could lead to the stock being added to a global index in August.
- Hitachi Energy India (POWERIND IN) has outperformed its peers and now trades at significantly higher valuations compared to its peer group.
- There is positioning in the stock and early entrants could be looking to unwind some of their holdings over the next couple of weeks.
Aditya Infotech: Niche Opportunity at Fair Valuations but Concerns Lurk
- Company operates home grown CCTV brand ‘CP PLUS’. Also the sole distributor for Zhejiang Dahua Technology A (002236 CH) in India. Dahua is also its primary components supplier.
- Expect 15-25% revenue growth vs 16% for industry with operating margins gradually improving to 10% translating to FY26E earnings range of 20-24.
- Company is raising 1,300cr (500cr fresh and 800cr OFS) at implied multiple of ~30x in line with valuation paid by Dixon Technologies India Ltd (DIXON IN) for its 6.5% stake.
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