Daily Brief India: Vedanta Ltd, Ather Energy, Goodluck India and more

In today’s briefing:

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger
Ather Energy Pre-IPO – The Negatives – Outpaced by Rivals
The Beat Ideas: Goodluck India Accelerating Margin Growth with Value-Added Products & Defence

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger

Vedanta Ltd (VEDL IN) plans a multi-segment demerger to unlock value by separating its aluminum, zinc, oil and gas, steel, and other core operations into standalone entities.
This restructuring aims to eliminate conglomerate discount, foster specialized leadership, and attract fresh capital, potentially enhancing overall valuations and fueling long-term growth across diversified segments.
Despite governance concerns and cyclical commodity risks, pure-play listings could catalyze re-ratings, offering heightened returns but requiring vigilance on execution and corporate transparency.

Ather Energy is looking to raise about US$536m in its upcoming India IPO.
Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
In this note, we talk about the not-so-positive aspects of the deal.

Goodluck India (GLIN IN) is expanding into high-value defense and precision tube segments, aiming to diversify beyond its low-margin steel products and capitalize on India’s growing domestic manufacturing push.
These strategic moves can enhance margins, reduce commodity price exposure, and capture rising demand from auto, defense, and infrastructure sectors, strengthening Goodluck’s long-term profitability.
Aiming for 2x revenue in next 3-4 years with margin expansion in all the segments apart from commodity segment.

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