In today’s briefing:
- Ola Electric: Hyundai Exits Amid Slowing Sales, Delayed Cells and Fundraising Plans.
- HAL (NSE: HAL) – Strong Visibility, Undervalued Optionality
- Relative Value Opportunity: Bank of India (BOI IN) Vs. Union Bank of India (UNBK IN)
- Fusion Cx Ltd Pre-IPO Tearsheet
- The Beat Ideas: Astral ~ Leader in PVC Pipes, Riding the Restocking Cycle
Ola Electric: Hyundai Exits Amid Slowing Sales, Delayed Cells and Fundraising Plans.
- Hyundai Motor (005380 KS) and Kia Corp (000270 KS) have exited their investment in Ola Electric through a combined stake sale worth USD80 million, at a discount to market prices.
- The exit marks the end of their 2019 investment in the then-unlisted 2W EV startup and highlights rising investor concerns over Ola Electric’s growth trajectory and operational challenges.
- Ola Electric had listed less than a year ago with bullish growth projections, but the stock is down 34% from the issue price and 63% from post-IPO high prices.
HAL (NSE: HAL) – Strong Visibility, Undervalued Optionality
- Over FY22–FY25, HAL’s revenue grew at a CAGR of ~8%, while PAT rose at ~15% CAGR, with the order book doubling to ₹1.89 lakh Cr, providing LT visibility.
- India’s defence indigenization drive, large platform rollouts (LCA Mk1A, LUH, AMCA, engines), positions HAL to address a Rs3–4 lakh Cr opportunity over the next 5–10 years, including exports.
- Despite strong earnings growth, zero debt, and long-term JV upside (e.g., Safran engine), HAL trades at a P/E of ~33–38×, below many peers, indicating room for re-rating.
Relative Value Opportunity: Bank of India (BOI IN) Vs. Union Bank of India (UNBK IN)
- The Bank of India (BOI IN) vs. Union Bank of India (UNBK IN) price-ratio has deviated more than two standard deviations from its one-year average, signaling a potential pair trade.
- The potential relative value opportunity can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.
- This Insight provides a target return and discusses trade setup and risk management strategies.
Fusion Cx Ltd Pre-IPO Tearsheet
- Fusion CX Limited (1604907D IN) (FCL) is looking to raise about US$117m in its upcoming India IPO. The bookrunners for the deal are Nuvama, IIFL, Motilal.
- FCL is a customer experience (CX) service provider offering integrated services across voice, email, chat, social media, and messaging.
- The 2025 Frost & Sullivan Best Practices Report recognized Fusion CX with the “North American Technology Innovation Leadership Recognition” for its technology use and client focus.
The Beat Ideas: Astral ~ Leader in PVC Pipes, Riding the Restocking Cycle
- Astral Ltd (ASTRA IN) is a market leader in CPVC and plastic piping systems, with growing presence in adhesives, paints, and water tanks it maintained margins despite industry’s headwinds.
- New launches like Fire Pro, OPVC, Drain Pro, and valves are expected to contribute INR 450–500 crore annually, driving high-margin growth and portfolio expansion.
- Dealers currently hold just 1–2 weeks of inventory, indicating an imminent restocking cycle that could boost near-term volumes.
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