In today’s briefing:
- Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness
- Capgemini–WNS: A Strategic AI Play with Risk-Arb Clarity and Optionality
- Protean EGov: Navigating the PAN 2.0 Headwind and Charting a Diversified Future
- Travel Food Services IPO – RHP Updates & Thoughts on Valuation
- Aditya Birla Lifestyle Brands (ABLBL IN) | A Sportswear Wildcard
- Why Borosil Renewables’ Exit from GMB Is a Clear Win for the Company?
Travel Food Services: $250M OFS, Niche Travel QSR but Valuations Seem Full Amidst near Term Weakness
- TFS operates QSRs and lounge in airports. They are present in the top 14 airports in India accounting for 26% of Indian-airport QSR and ~45% of the Indian-airport Lounge revenues
- FY26 performance is expected to be flattish as 1H results will lap impact of Adani operated airports being moved from TFS books to Joint venture with 25% stake.
- FY27 onwards growth is estimated at 15+% with EBITDA margins of 34-37%. We estimate FY27 revenues of ~2,000cr with PAT of 450-500cr implying the deal is being priced at 30-33x
Capgemini–WNS: A Strategic AI Play with Risk-Arb Clarity and Optionality
- Capgemini to acquire WNS for $76.50 per share in cash; deal implies a 28% premium to VWAP and aims to create a global leader in AI-powered intelligent operations.
- WNS traded at a discount to peers pre-offer; Capgemini expects meaningful synergies (~$8.63/share NPV), justifying the 16x P/E takeout. No termination fee is disclosed publicly.
- Interloper risk is modest; deal certainty is high. With a 3.83% gross spread (pre-market) and 8.15% annualized return, the arbitrage setup is attractive barring regulatory or shareholder surprises.
Protean EGov: Navigating the PAN 2.0 Headwind and Charting a Diversified Future
- Protean’s exclusion from the PAN 2.0 project raises concerns about potential long-term revenue loss, especially as tax services contribute significantly to its current business.
- Protean’s strategic diversification into pension services, digital identity solutions, and international markets positions it well for long-term growth, reducing reliance on tax services.
- With INR800 crore in cash reserves and zero debt, Protean is financially resilient, allowing it to invest in new growth areas, making it attractive for long-term investors despite short-term volatility.
Travel Food Services IPO – RHP Updates & Thoughts on Valuation
- Travel Food Services Ltd (1450229D IN) is looking to raise about US$233m in its India IPO.
- Travel Food Services Limited (TFS) operates a network of travel quick service restaurants (Travel QSRs) and private lounges in airports.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.
Aditya Birla Lifestyle Brands (ABLBL IN) | A Sportswear Wildcard
- The ABLBL demerger creates a focused entity with market-leading premium brands, providing a stable foundation by separating the high-margin apparel business from ABFRL’s weaker assets.
- ABLBL core lifestyle portfolio, including Louis Philippe and Peter England, boasts dominant market share in key segments and enjoys exceptionally strong brand recall among consumers.
- Future growth hinges on wildcards American Eagle and Reebok. The Reebok turnaround offers significant upside by tapping into the high-growth, lucrative Indian sportswear and athleisure market.
Why Borosil Renewables’ Exit from GMB Is a Clear Win for the Company?
- Borosil Renewables (BRSL IN)‘ German subsidiary, GMB, filed for insolvency on July 4, 2025, due to European market challenges and losses.
- This halts ~INR 9 crore monthly losses, freeing capital and management to focus on India’s booming solar glass sector.
- Strengthens positive outlook; Borosil is now leaner and better positioned for India’s high-growth, policy-supported renewable market.
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