Daily BriefsIndia

India: Paytm, Jubilant Pharmova Limited, Glenmark Pharmaceuticals, Persistent Systems, HDFC Standard Life Insurance, JSW Steel Ltd, Federal Bank, Havells India, IIFL Holdings and more

In today’s briefing:

  • Paytm IPO Initiation: A Payments-Led Super-App
  • Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1
  • Glenmark Life Sciences IPO: Leadership in Select APIs, Strong Relation with Large Companies
  • Persistent Systems: Services Revenues Continue Their Strong Performance
  • Hdfc Life Insurance Company Limited: Spike in Claims Affects PAT; Operations Stable
  • JSW Steel: Stellar Performance
  • Morning Views Asia: Evergrande Real Estate Group, JSW Steel Ltd, Tata Motors ADR
  • Federal Bank: Decent Performance Amid Turmoil Due to Pandemic
  • Havells India: Strong Performance Amid Challenging Scenario
  • IIFL Securities: Robust Client Acquisition; Healthy Business Growth

Paytm IPO Initiation: A Payments-Led Super-App

By Arun George

Paytm (PAYTM IN), formally known as One97 Communications, is India’s largest payments platform based on the number of consumers, number of merchants, number of transactions and revenue as of 31 March 2021, according to RedSeer. Paytm has an overall payments transaction volume market share of 40%, and wallet payments transaction market share of 65-70% in India as of FY21, according to RedSeer. Paytm’s shareholders include Ant Financial Services Group (6688 HK) (29.6% of outstanding shares), Softbank Vision Fund (18.3%), Alibaba Group (BABA US) (7.2%) and Berkshire Hathaway Inc Cl B (BRK/B US) (2.8%).  

Paytm plans to raise up to Rs166.0 billion ($2.2 billion) with a primary/secondary split of 50%/50%, according to the DHRP filing. 

The Indian Government is highly supportive of digital payments and in 2016, introduced demonetisation efforts through the launch of Unified Payment Interface (UPI) to reduce the reliance on cash. However, India continues to be a cash-driven economy which underscores the opportunity. Due to government initiatives, improving technology, growing awareness, digital payments by value in India are expected to more than double from $20 trillion in FY21 to $40-50 trillion by FY26, according to RedSeer. 

As India’s largest payments platform, Paytm is well placed to benefit from this structural tailwind. The advent of UPI has increased competition (Google Pay, PhonePe, MobiKwik) but Paytm is also leveraging its dominance in digital payments to build a synergistic ecosystem of complementary services, resulting in a strong claim to the “super-app” tag. While the COVID-19 pandemic was disruptive particularly to the non-payments business, Paytm should return to growth as the impact of the pandemic wanes and vaccination rates rise in India. Overall, we think that Paytm’s fundamentals are attractive. 


Jubilant Pharmova: Low Base, Covid Opportunities Drive Q1

By ICICI Securities Limited

About the stock: Jubilant Pharmova is engaged in specialty pharmaceuticals, CDMO, generics, drug discovery and proprietary novel drug businesses.

  • Formulations – 24% of FY21 revenues, Radiopharma and allergy therapy – 38%, and CDMO & API – 33% of sales
  • It has six USFDA approved manufacturing facilities in India, US and Canada
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.

Glenmark Life Sciences IPO: Leadership in Select APIs, Strong Relation with Large Companies

By ICICI Securities Limited

Leadership in select APIs, strong relation with large companies GLS is a leading developer, manufacturer of select high value, noncommoditised APIs in chronic therapeutic areas, including CVS, CNS & pain management, diabetes and continue to branch into other APIs. It has strong market share in select specialised APIs like Telmisartan (anti-hypertensive), Atovaquone (anti-parasitic), Perindopril (anti-hypertensive), Teneligliptin (diabetes), Zonisamide (CNS) and Adapalene (dermatology).

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.

Persistent Systems: Services Revenues Continue Their Strong Performance

By ICICI Securities Limited

About the stock: Persistent System (Persistent) offers cloud, data, product & design led services to BFSI, healthcare & hi tech verticals.

  • Persistent has shown a healthy turnaround in dollar revenue growth of 13% YoY in FY21 and margin expansion of 248 bps
  • Net debt free and healthy double digit return ratio (with RoCE of 20%)
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.

Hdfc Life Insurance Company Limited: Spike in Claims Affects PAT; Operations Stable

By Geojit BNP Paribas

Spike in claims affects PAT; Operations stable HDFC Life Insurance Co. Ltd, a joint venture between HDFC Ltd. and Standard Life Aberdeen, provides insurance services and was listed on BSE on 17th…

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JSW Steel: Stellar Performance

By ICICI Securities Limited

About the stock: JSW Steel is one of the leading integrated steel companies in India. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the art technologies to produce and offer high value…

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Morning Views Asia: Evergrande Real Estate Group, JSW Steel Ltd, Tata Motors ADR

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.


Federal Bank: Decent Performance Amid Turmoil Due to Pandemic

By ICICI Securities Limited

About the stock: Federal Bank is an old private sector bank based out of Kerala with around 1272 branches and 1953 ATM across various states.

  • Strong liability franchisee with 93% of total deposits being retail
  • Balanced loan mix with retail: corporate mix of 54:46
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.

Havells India: Strong Performance Amid Challenging Scenario

By ICICI Securities Limited

About the stock: Havells India (HIL) is India’s leading electrical appliances & equipment manufacturer with a diversified product portfolio consisting of switchgears, cables, electrical consumer durables and lighting & fixtures. Apart from ‘Havells’, HIL’s other major brands include Crabtree, Standard, Reo, and Lloyd.

  • At all its business segment, Havells has a strong presence in the organised product category with market share ranging between 6% and 20%
  • Robust balance sheet with RoE & RoCE of 20% & 25%, respectively (five year average), with stringent working capital policy
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.

IIFL Securities: Robust Client Acquisition; Healthy Business Growth

By ICICI Securities Limited

About the stock: IIFL Securities (IIFL Sec) is engaged in retail and institutional broking, distribution of financial products and investment banking.

  • The company caters to an active retail client base of ~3.24 lakh
  • IIFL’s institutional broking segment has ~740 domestic and foreign clients
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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