In today’s briefing:
- Sun Pharma’s Halol Hurdles; No Major Impact on Operations
- KRBL Ltd- Not Just Another Resignation
- Unpacking KRBL’s Corporate Challenges
- Tata Capital IPO – Jinxed by Tata Motors Finance
- Exiting the Long Position “pain Trade” on Union Bank of India; Stick with Long Position on Baroda
Sun Pharma’s Halol Hurdles; No Major Impact on Operations
- Sun Pharma’s innovative medicines like Ilumya, Cequa, Winlevi, and Leqselvi are driving strong growth, now contributing 20% of revenues. But the Halol plant remains under USFDA restrictions, blocking new approvals.
- Specialty medicines such as Ilumya are fueling profitable growth, but continued compliance issues at Halol damage regulatory confidence and delay approvals for new products in the US market.
- Sun Pharma’s growth is supported by its specialty portfolio and strong India presence, but improving Halol’s compliance record is essential to rebuild trust and unlock higher market valuations.
KRBL Ltd- Not Just Another Resignation
- Shares of KRBL Ltd (KRB IN) dropped as much as 12% intraday on September 15th, owing to resignation of Independent Director, Mr. Anil Kumar Chaudhary.
- His letter highlights suppression of dissent, lack of transparency in decision-making, questionable receivable write-offs, and CSR mismanagement among several governance concerns currently at the company.
- When triangulated with auditor qualifications, committee overlaps, CSR lapses, frequent Board/CS exits, and major write off, a pattern of weak checks and board oversight emerges.
Unpacking KRBL’s Corporate Challenges
- Independent Director Anil Kumar Chaudhary resigned in September 2025 citing serious governance issues including suppression of dissent, withholding of information, arbitrary financial decisions, and board process irregularities.
- These recent events suggest that previous governance controversies are not fully resolved, raising issues around board transparency, independent oversight, and risk to stakeholder trust.
- While KRBL’s operational performance remains strong, this development raises serious red flags about the company’s governance culture.
Tata Capital IPO – Jinxed by Tata Motors Finance
- This note discusses the superlative historical track record of Tata Capital Limited (TATACAP IN) pre merger with Tata Motors Finance.
- It also focusses on financial metrics of Tata Motors Finance and its financial track record.
- Finally, how post merger of both companies the finance metrics has changed and what would be the likely valuation of IPO is discussed in this note.
Exiting the Long Position “pain Trade” on Union Bank of India; Stick with Long Position on Baroda
- We cut our losses on our long position on Union Bank of India (UBI), whilst sticking with our core conviction buy name Bank of Baroda
- UBI has a slightly higher structural credit risk profile than Baroda, in our view, with UBI’s slightly bigger share of exposure to agriculture and MSME credit
- Baroda is now our sole buy in Indian banks; it has lesser credit quality headwinds than UBI for similar valuations, whilst having potential to expand returns over the medium term
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