In today’s briefing:
- Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure
- Delhivery IPO: Yet to Convincingly Deliver
- Return of the Genteel Low Profile Bankers
- Asia HY Monthly – Oil & Gas Update Following Russia’S Invasion Of Ukraine – Lucror Analytics
- Can Fin Homes: Growth Momentum Strong; Maintain BUY
- Inox Leisure – Business Back to Normalcy; No CCI Action Yet
- Shriram City Union Finance – Upgrading Estimates on Strong Growth Outlook
- Mahindra Finance – Treading Towards Normalcy
- Shriram Transport Finance – Consistent Operational Performance
Delhivery Pre-IPO – RHP Updates – Growth Remains Strong, Pricing Remains Under Pressure
- Delhivery is now looking to raise around US$700m in its upcoming India IPO, the company is backed by a host of financial investors, the largest being Softbank.
- Delhivery is an online logistics service provider which covers express parcel delivery, heavy goods delivery, part truckload (PTL) freight, truckload (TL) freight, supply chain solutions, cross border solutions etc.
- In this note, we talk about the updates from its RHP.
Delhivery IPO: Yet to Convincingly Deliver
- Delhivery is the largest and fastest-growing 3PL express parcel delivery player in India. It has cut its IPO raise from Rs74.6 billion ($1 billion) to Rs52.4 billion ($0.7 billion).
- In Delhivery IPO Initiation: Can It Deliver?, we noted that the fundamentals are mixed as it has been unable to leverage strong growth to deliver profits or cash generation.
- In this note, we look at the RHP which discloses 9MFY22 results. We continue to believe the negatives outweigh the positives. We are inclined to give the IPO a pass.
Return of the Genteel Low Profile Bankers
- Past phenomenal success of HDFC Bank (HDFCB IN) led to a belief that an oppressive work culture is the driver for performance and premium valuation
- Present CEOs at ICICI Bank Ltd (ICICIBC IN) and HDFC Bank believe a genteel and more humane approach can deliver similar results.
- Market has rewarded ICICI Bank and penalised HDFC Bank. Both CEOs are putting in place the building blocks for future sustained performance
Asia HY Monthly – Oil & Gas Update Following Russia’S Invasion Of Ukraine – Lucror Analytics
This month, we provide an update on the developments in the Oil & Gas sector following Russia’s invasion of Ukraine.
The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors’ understanding of the Asian USD high-yield market.
Can Fin Homes: Growth Momentum Strong; Maintain BUY
- Can Fin Homes (CANF) reported strong set numbers in Q4FY22 with the pick-up in loan growth led by higher disbursements, improved NIMs due to higher yields, and robust asset quality
- We remain positive on the stock given its favourable loan mix, comfortable liquidity position, and robust CAR (23.3%)
- We maintain BUY with a target price of Rs 790 (2.5x FY24E BV), implying an upside of 23% from CMP.
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Inox Leisure – Business Back to Normalcy; No CCI Action Yet
- Highest screen addition in the industry in FY22: INOL opened 8 screens in 2 properties in 4QFY22 (32 in FY22), taking the total screen count to 675.
- ATP declines QoQ despite blockbuster performances: ATP at Rs218 grew by 27% YoY and SPH at Rs86 grew by 10% YoY.
- However, both declined QoQ compared to ATP and SPH at Rs226 and Rs97, respectively, in 3QFY22.
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Shriram City Union Finance – Upgrading Estimates on Strong Growth Outlook
- SCUF Q4 result highlights: Disbursements grew by 15% yoy but declined 1% qoq due to a high base in the seasonally strong Q3.
- SHFL Q4 result highlights: SHFL continues to invest in its rapidly growing business in order to make a mark in the booming affordable housing space, the full effects of which will be visible from FY23.
- Change to estimates: In the case of SCUF, we factor in increased disbursements in the gold loan portfolio.
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.
Mahindra Finance – Treading Towards Normalcy
- Disbursements up 54% YoY; Advance growth flat: Disbursements at Rs92bn were up 54% YoY and 15% QoQ despite being affected by low inventory levels.
- Stage 3 improvement impressive: GS3 at 7.7% (down 1.3p.p. YoY and 3.6p.p.QoQ) was led by higher collections and write-offs (Rs12bn).
- Business update for April 2022: MMFS registered disbursements of Rs27.5bn in April’22, up 109% YoY but down 28% MoM.
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Shriram Transport Finance – Consistent Operational Performance
- Q4 results highlights: Disbursement growth of 13% yoy resulted in 8.4% yoy growth in portfolio AUM, driven by strong yoy growth in M&LCVs (20%), PVs (6%) and HCVs (8%).
- NIMs improved by 61bps qoq/89bps yoy due to the re-pricing of LT-debt and interest write- backs.
- Excess liquidity, cash & bank balances and investments constituted ~16 % of total assets.
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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