Daily Brief India: Tenneco Clean Air India Ltd, Transformers & Rectifiers (India) Ltd, Aditya Birla Capital Ltd, Bajaj Finance Ltd, FSN E-Commerce Ventures (Nykaa), Emmvee Photovoltaic Power Limited, Punjab National Bank, Astrotalk and more

• We present five reasons why there is no adrenaline rush for Tenneco Clean Air India Ltd (1880671D IN) ‘s IPO
• IPO is a complete offer for sale of USD 406 million. There is no fresh issue of equity.
• At 24x P/E on Q1FY26 annualized earnings, the IPO valuation appears fair.

• Tenneco Clean Air India Ltd (1880671D IN)  is now looking to raise up to US$406m in its upcoming India IPO.
• TCAIL designs and manufactures clean air, powertrain, and suspension solutions for Indian OEMs, export markets, and the aftermarket, serving PVs, CVs, OHs, and industrial applications.
• We have looked at the company’s past performance in our earlier notes. In this note, we talk about the RHP updates and valuations.

• World Bank debarred TARIL from participating in its funded projects following old Nigerian contract issues; the company contests it.
• The incident has raised governance questions and led to an exaggerated stock sell-off, despite immaterial financial exposure and reaffirmed guidance. 
• Debarment is isolated and non-material. Execution delays are transitory. Strong order book, backward integration, and FY26 guidance make TARIL attractive on dips.

• ABCL’s Q2 FY26 lending portfolio surged 29% YoY, driven by Housing Finance and secured MSME loans, while the firm deployed Generative AI across its flagship digital platforms.
• Robust asset growth and an improving credit profile (Gross Stage 2 & 3 down 121 bps YoY in NBFC), but consolidated PAT growth was constrained by rising interest costs.
• The One ABC’ digital ecosystem and high-growth segments position ABCL for enhanced return ratios, meriting a closer look at its valuation discount relative to pure-play NBFC peers.

• Company delivered a steady Q2 FY26, with PAT growth of 23% YoY and 4% QoQ, in line with expectations. MSME stress prompted a modest downgrade in AUM guidance to 22–23%. 
• The quarter reflects the company’s pivot toward quality growth, fortified by an aggressive AI transformation program (FINAI) and gold loan expansion strategy.
• While short-term credit costs weigh on margins, Bajaj Finance’s digital transformation and franchise scale position it to re-accelerate in FY27, reinforcing its premium valuation among Indian NBFCs.

• Nykaa delivered its strongest quarter in two years in Q2 FY26, with GMV up 30% YoY and EBITDA margins expanding 125 bps to 6.8%.
• The results confirm that Nykaa’s profitability driven by owned brands, omnichannel integration, and AI-enabled personalization is firmly turning.
• Fashion’s near-term breakeven and continued premiumization in beauty could re-rate Nykaa as a sustainable compounding story.

• Emmvee Photovoltaic has filed RHP for IPO with a total offer size of up to INR 29B, offering 133.6M shares at a price band of INR 206-INR 221 per share.
• This includes a fresh issue of INR 21.4B (~ 98.8M shares). The company intends to use the proceeds for debt repayment and general corporate purpose.
• Our recommendation would be that investors can buy into this issue as the valuation range looks relatively cheap when compared to peers.

• Context: The Punjab National Bank (PNB IN) vs. Bank of India (BOI IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Punjab National Bank (PNB IN) and short Bank of India (BOI IN) targets a 4% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Astrotalk (123A IN) closed its fiscal year FY25 with revenues of INR 1,182 crore and a PAT of over INR 250 crore, marking a 2.5x jump in profitability.
• The core consultation business is now being supplemented by AstroStore and international footprint (30% of revenue), as management lines up a late 2026/early 2027 IPO at target valuation of $1.3B–$1.5B.
• Astrotalk has cracked high-margin, high-growth digital services. Its IPO now tests investor appetite for its “belief-tech” model against mounting, though still nascent, regulatory scrutiny.

• Tenneco Clean Air India Ltd. is a leading Tier-I automotive component supplier in India with strong market positions in clean air and advanced ride technologies, poised to benefit from stricter emission norms and premiumization trends.
• The company has demonstrated robust profitability improvement through effective cost management, despite a recent decline in topline revenue, particularly in its clean air segment.
• The upcoming IPO is a 100% Offer for Sale by the promoter, which will not infuse capital into the company but aims to enhance visibility and provide a public market for its shares.

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