Daily BriefsIndia

India: Apollo Hospitals Enterprise, HDFC Bank, Healthium Medtech, RateGain Travel Technologies, RPSG Ventures Limited, Bajaj Finance Ltd, KEC International, Anand Rathi Wealth Management, Escorts Ltd and more

In today’s briefing:

  • NIFTY50 Index Rebalance Preview: Apollo Hospitals & Info Edge in the Zone to Replace IOC and COAL
  • HDFC BANK: Undergoing Digital Transformation – Fintech to Catalyze Growth, Not Disrupt It
  • Healthium Medtech Pre-IPO – Peer Comparison and Thoughts on Valuation
  • RateGain Travel Technologies IPO – Battered by the Pandemic, However, Operating Metrics Recovering
  • RPSG Ventures: Ambitious FMCG Play | Now Also An Aspiring Sports Play (IPL)
  • Bajaj Finance: Focus on Growth Is Back – Digitization Is Pivotal
  • KEC International: Healthy Order Book; Better Execution To Drive Growth
  • Anand Rathi Wealth Management: IPO
  • Anand Rathi Wealth Limited – IPO Note – 02122021
  • Pick of the Week – Escorts Limited

NIFTY50 Index Rebalance Preview: Apollo Hospitals & Info Edge in the Zone to Replace IOC and COAL

By Brian Freitas

  • Nearly three-quarters of the way through the review period, we see Apollo Hospitals (APHS) and Info Edge (INFOE) replacing Indian Oil (IOCL) and Coal India (COAL) in the NIFTY50.
  • The inclusion of Apollo Hospitals and deletion of IOC is a high probability event, while the inclusion of Info Edge and deletion of Coal India is a lower probability event.
  • The impact in terms of ADV to trade on the stocks is quite large and that increases further once we consider the impact in terms of delivery volumes.

HDFC BANK: Undergoing Digital Transformation – Fintech to Catalyze Growth, Not Disrupt It

By Ankit Agrawal, CFA

  • HDFC Bank (HDFCB IN) is pivoting itself to embrace new age digital banking processes. It has been revamping its back-end and front-end technology infrastructure to enable this. 
  • It has been also partnering with the fintech ecosystem to enhance its reach. With fintechs as distributors, we think the value of back-end underwriting capabilities have grown all the more.
  • We think technology has potential to significantly catalyze HDFC Bank’s growth over the next 3-5Y, to the extent that it may even outgrow its last 3Y growth.

Healthium Medtech Pre-IPO – Peer Comparison and Thoughts on Valuation

By Sumeet Singh

  • Healthium Medtech (HM) is looking to raise up to US$500m in its upcoming India IPO. 
  • Healthium Medtech is a global medtech company that manufactures products used in surgical, post-surgical and chronic care. 
  • In this note we will undertake a peer comparison and talk about valuations.

RateGain Travel Technologies IPO – Battered by the Pandemic, However, Operating Metrics Recovering

By Clarence Chu

  • RateGain Travel Technologies (1920810D IN) is looking to raise up to US$178m in its India IPO. 
  • RateGain Travel Technologies is the largest SaaS company in the hospitality and travel industry in India. The deal will comprise a mix of primary and secondary shares.
  • As of Sept 2021, the firm serves 1,462 customers including eight Global Fortune 500 companies, and has offices in six countries. 

RPSG Ventures: Ambitious FMCG Play | Now Also An Aspiring Sports Play (IPL)

By Ankit Agrawal, CFA

  • RPSG Ventures Limited (CESCV IN) (“RPSGV”) continues to take strides into the FMCG space. It recently forayed into the personal and beauty care segment.
  • Sanjiv Goenka also successfully bid for the new IPL team of Lucknow, part of which is to be funded by RPSG Ventures.
  • We attended the RPSG Group’s two-day investor conference where RPSG group shared detailed update on their vision and ambition around the FMCG business of RPSGV.

Bajaj Finance: Focus on Growth Is Back – Digitization Is Pivotal

By Ankit Agrawal, CFA

  • Bajaj Finance Ltd (BAF IN) reported strong growth across segments. With the environment normalizing, BAF’s management was upbeat and is focused on growth going forward. 
  • The demand environment also remains robust and BAF is well placed to benefit from it. Digitization is likely to play a pivotal role going forward.  
  • BAF is on an ambitious digital-first pivot to catalyze growth and embrace technology as a multiplier to scale its business to the next level.

KEC International: Healthy Order Book; Better Execution To Drive Growth

By Axis Direct

  • The company has a robust order book position and L1 of over Rs 29,000 Cr with T&D and Non-T&D share at 52:48
  • The company continues to sharply focus on international T&D orders as it foresees notable international opportunities in its various operating regions
  • We value KEC International at 14x FY23E EPS to arrive at a target price of Rs490/share, implying an upside of 13% from CMP. We, therefore, change our rating from HOLD to BUY.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Anand Rathi Wealth Management: IPO

By ICICI Securities Limited

  • Anand Rathi Wealth Limited (ARWL) is one of the leading nonbank wealth solutions firms in India
  • Anand Rathi acts as a mutual fund distributor, registered with AMFI. It distributes mutual fund schemes managed by AMCs and earns distribution commissions 
  • ARWL is a play on wealth management business where Ultra HNI segment is witnessing significant growth. We remain positive in the space and assign SUBSCRIBE rating to the IPO.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Anand Rathi Wealth Limited – IPO Note – 02122021

By HDFC Securities

Issue Open: Dec 02 Dec 06 2021 Price Band: Rs. 530 550 (Discount of Rs 25 for all eligible employee) *Issue Size: Rs 660.0 cr (Entirely Offer for sale of Rs 12,000,000 eq sh) Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail atleast 35% eq sh Employee Upto 250,000 eq sh Face Value: Rs 5 Book value: Rs 68.91 (Aug 31, 2021) Bid size: – 27 equity shares and in multiples thereof 100% Book built Issue Anand Rathi Wealth Limited – IPO Note

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pick of the Week – Escorts Limited

By Edelweiss

  • Escorts has been among the leading players in the tractor industry and well-known brand in the farm equipment space since independence.
  • During the last 2 decades, it has forged one of the most extraordinary turnaround stories in the history of the domestic automobile industry
  • Over the medium term, expect synergies from the partnership with Kuboto to gather momentum
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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