Daily Brief India: Tata Motors, Physicswallah Limited, Pricol Ltd, R R Kabel and more

• With the review period complete, there could be one change for the S&P BSE SENSEX Index (SENSEX INDEX) at the December rebalance.
• Following the demerger of the Commercial Vehicle business, the drop in market cap for Tata Motors (TTMT IN) could result in index deletion.
• InterGlobe Aviation Ltd (INDIGO IN) is a potential inclusion to the index, but there is a small possibility of Grasim Industries (GRASIM IN) being added to the index instead.

• Physicswallah Limited (2076103D IN) IPO opens today – 11 Nov 2025.The issue is a combination of fresh issue of INR 31 billion and offer for sale of INR 3.8 billion.
• In this insight we discuss about the company, the industry, past controversies in the sector across major players.
• We finally provide rationale why we do now know what valuation multiple to assign given the various factors.

• Physicswallah Is looking to raise about US$434m in its upcoming India IPO.
• Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
• We have looked at the company’s past performance in our earlier notes. In this note we talk about the RHP updates and provide our thoughts on valuations.

• Pricol is a leading Indian automotive components manufacturer, well-positioned to benefit from the increasing electronification and premiumization of vehicles, particularly in the two-wheeler segment where it holds a dominant market share for instrument clusters.
• The company is actively diversifying its product portfolio and customer base, with strategic partnerships and acquisitions aimed at capturing growth in the electric vehicle (EV) segment and reducing dependence on two-wheelers.
• While demonstrating strong revenue growth, the company faces challenges from margin pressure due to intense competition and rising input costs, alongside risks associated with the cyclical nature of the automotive industry and the transition to EVs.

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• RR Kabel delivered a strong Q2FY26 with 19.5% YoY revenue growth and EBITDA doubling, driven by robust volume expansion in its high-margin Cables & Wires segment.
• Solid core performance, backed by aggressive capex and margin expansion targets, positions RR Kabel as a key beneficiary of India’s accelerating infrastructure and industrial growth cycle.
• RR Kabel remains structurally well-placed for growth, though long-term margin gains depend on timely capex execution and a successful turnaround of its FMEG business.

• Strategic Demerger to Unlock Value: Tata Motors is undergoing a significant demerger, separating its Commercial Vehicles (CV) and Passenger Vehicles (PV), including Jaguar Land Rover (JLR), into two distinct listed entities. This move is designed to provide sharper focus, unlock synergistic benefits, and allow for tailored capital allocation strategies for each business.
• Dominance in India, Turnaround at JLR: The company holds a commanding market share in the Indian CV market and is a strong contender in the PV space, particularly with its leadership in the electric vehicle (EV) segment. Concurrently, its luxury arm, JLR, is executing a turnaround strategy focused on electrification and improving profitability, which is critical to the consolidated performance.
• Strong Financial Recovery and Growth Trajectory: Tata Motors has demonstrated a remarkable financial turnaround, with substantial growth in revenue and a significant shift from net loss to robust profitability over the last three years. This is supported by strong operating cash flow generation and an aggressive push into high-growth areas like EVs.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.