Daily BriefsIndia

India: Droom Technology Limited, Indusind Bank, ITC Ltd, Nocil Ltd, TCNS Clothing, Vodafone Idea , Engineers India, Kwg Property Holding and more

In today’s briefing:

  • Droom Technology Limited Pre-IPO Tearsheet
  • Will IndusInd’s Reorganisation of Corporate Lending Trigger Another Round of Whistleblowing?
  • Muted Cigarette volumes; Other FMCG margin pressures weigh on ITC
  • Margin: The issue of the past, a concern of the future!
  • TCNS Clothing: Building Levers for Sustainable Growth
  • VIL hikes Prepaid tariffs by 20
    %, all eyes now on RJio
  • Revenue misses our estimate; order inflows robust
  • Morning Views Asia: KWG Living Group, Vedanta Resources

Droom Technology Limited Pre-IPO Tearsheet

By Clarence Chu

  • Droom Technology Limited (1306539D IN) is looking to raise up to US$270m in its upcoming India IPO. The deal will be run by ICICI Securities, Axis, Edelweiss, HSBC, and Nomura. 
  • Droom Technology is an Indian automobile e-commerce firm that provides a platform connecting buyers and sellers for automobile transactions and related services. 
  • As of Sept 2021, the firm had over 1.15m listed vehicles, ranging from used and new cars to two-wheelers and other vehicles.

Will IndusInd’s Reorganisation of Corporate Lending Trigger Another Round of Whistleblowing?

By Hemindra Hazari

  • Significant loss to shareholders on account of whistleblowing by disgruntled insiders following restructuring at BFIL
  • The bank is finally implementing a much needed restructing of corporate banking
  • Reorganisation of corporate banking is a positive development but should not lead to another round of whistelblowing by those adversely impacted by the corporate banking restructuring

Muted Cigarette volumes; Other FMCG margin pressures weigh on ITC

By Motilal Oswal

Tapering in-home consumption and sharp commodity cost inflation could affect strong EBIT growth in the Other FMCG segment, preventing the contribution of Cigarettes in overall EBIT to decline much (likely to reduce to ~80% in FY23E which is still within its ten-year range of 80-86%). Cigarette volumes for ITC and even other players globally have been on a declining trend, given the increased health consciousness among consumers over the last decade.

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.

Margin: The issue of the past, a concern of the future!

By Motilal Oswal

Aniline is primarily used as a feedstock for producing Methylene Diphenyl Diisocyanate (MDI). By end-user market, it is primarily used in the Building and Construction space (constitutes 55% of the total consumption), followed by Auto (16%), rubber chemicals (11%), and Consumer Goods (10%). MDI prices continue to witness an uptrend in the North American market, backed by consistent demand from the Housing sector, downstream plasticizers, and insulator.

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.

TCNS Clothing: Building Levers for Sustainable Growth

By ICICI Securities Limited

  • TCNS has emerged as the market leader in women’s ethnic space through its three popular home grown brands
  • TCNS follows an asset light business model, with production outsourced on a job work basis. This enables the company to generate high RoIC
  • We maintain BUY recommendation on the stock. We value TCNS at Rs 1120 i.e. 4x FY24E EV/Sales
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.

VIL hikes Prepaid tariffs by 20
%, all eyes now on RJio

By Motilal Oswal

Following Bharti and after months of expectation, VIL finally announced a tariff hike to the tune of 20% across its price plans, effective from 25th Nov’21. It is now important for RJio to follow suit to ensure sustainability of the tariff hikes. VIL’s ARPU, which stands at a mere INR109 (40% below Bharti), given the higher proportion of customers on lower base plans, could see a big push, provided it doesn’t see a huge market share loss.

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.

Revenue misses our estimate; order inflows robust

By Motilal Oswal

ENGR’s 2QFY22 revenue was 12% below our estimate, with the miss led by lower than expected revenue in the Consultancy segment. Operating profit came in line with our estimate, with a favorable revenue mix (54% share of Consultancy segment revenue) leading to higher than estimated EBITDA margin at 9.3% (est. 8.2%). Lower than expected other income led to adjusted PAT 15% below our estimates.

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.

Morning Views Asia: KWG Living Group, Vedanta Resources

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


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