india Archives | Page 27 of 152 | Smartkarma

• Blackstone (BX US) is investing INR 1,800 crore to acquire a 66% stake in Kolte Patil Developers (KPDL IN), marking its first big move into India’s residential real estate market.
• This deal signals rising institutional interest in India’s housing sector and sets the stage for a potential residential REIT, similar to Blackstone’s office REIT playbook.
• The residential segment, long seen as fragmented and informal, may now see valuation re-ratings, increased M&A activity, and formalization driven by global capital.

• Coromandel International (CRIN IN),a key Murugappa Group company, acquired a 53% controlling stake in NACL Industries for INR 820Crs on March 12, 2025 at INR 76.70 per share.
• NACL Industries is a Hyderabad-based agrochemical firm with manufacturing units, a diverse product portfolio, and technical export capabilities, including a presence in contract manufacturing.
• With this merger at decent valuation, Murugappa group(which is known for efficient capital allocation) certainly make it more efficient and value accretive for their business. 

• Fujiyama Power Systems Ltd (1742651D IN) (FPSL) is planning to raise about US$138m through its upcoming India IPO. The lead bookrunners for the deal are Motilal, SBI.
• FPSL was established in 1996. The company specializes in solar panel and inverter manufacturing, covering on-grid, hybrid, and off-grid solutions, along with lead acid and lithium-ion battery production. 
• As per CARE Report, it was the 1st Indian company to develop an SMT-based inverter with a single card in 2000. 

• Bajaj Finserv (BJFIN IN) has acquired Allianz’s 26% stake in both insurance JVs for INR 24,180 crore, gaining full control of Bajaj Allianz Life and General Insurance.
• This unlocks platform-wide integration across lending, wealth, and insurance, setting Bajaj up as a full-stack financial services powerhouse with total strategic control.
• With valuations set and consolidation likely, India’s insurance sector enters a new era- where scale, tech, and single ownership will drive future leadership.

• Anthem Biosciences (1234D IN) is looking to raise up to US$400m in its upcoming India IPO.
• Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
• In this note, we talk about the positive aspects of the deal.

• Hyundai Motor India (HYUNDAI IN) has proposed seven related-party transactions worth over INR 31,500 crore, just months after its record-breaking IPO.
• Proxy advisors are sharply divided, with concerns around valuation, transparency, and fairness, raising governance red flags for a newly listed company.
• Despite likely approval due to promoter holding, investor trust hinges on how Hyundai communicates and ensures accountability post-IPO.

• Nifty traded in an exceptionally narrow range during a holiday-shortened week, a stark contrast to volatility in other markets.
• We highlight Nifty’s relative performance against SPX across both long- and short-term time frames.
• Implied volatility softened as the quiet range and muted trading activity put pressure on options pricing.

• Hindustan Zinc (HZ IN) is set to see significant earnings upgrades driven surge in silver prices (40% EBITDA share), local currency weakness and benign costs.
• Planning for major US$2-2.5b growth expenditure to double output over next 3=5 years.
• Valuations: Entering a strong earnings upgrades cycle. Stock can re-rate despite trading at slight premium to historic averages. Stake sales by key holders is a risk.

• IVs remain subdued, trading sub-12% levels, as Option Markets expect low impact from U.S.-trade tensions. Risk premia compresses in spite of upcoming FOMC event risk. 
• Vol term-structure has moved further into Contango. Realized Vol continues to underperform.
• Vol-Surface is exhibiting interesting behaviour as Skew has compressed while Smile has extended. 

• Eicher Motors (EIM IN), through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment. 
• The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.
• Royal Enfield’s focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.

• Hindustan Copper (HCP IN) India’s only pure-play copper miner – could see earnings surge >60% if current price buoyancy sustains.
• Copper rally appears drive by fundamentals with several large miners such as Freeport Mcmoran (FCX US)BHP Group Ltd (BHP AU) and Anglo American (AAL LN) guiding declines.
• Mining costs are largely location-specific and track inflation trends, supporting significant topline buoyancy.

• Salzer Electronics (SZE IN) is aggressively scaling its smart meter business with INR 600–700 crore revenue targeted in FY26, aiming to sell up to 8 lakh units annually.
• This diversification into B2B smart metering could double revenues, boost margins, and improve ROCE, transforming Salzer from a niche switchgear player to a full-stack energy solutions provider.
• Salzer is no longer a slow-growing industrial supplier: it’s evolving into a high-growth, government-aligned, tech-driven player with strong export and R&D-led optionality.

• Bluestone Jewellery and Lifestyle Ltd Ltd (BJL) (0124165D IN)(BJL) is planning to raise about US$118m in its upcoming India IPO. 
• BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand.
• It is a digital-first direct-to-consumer (DTC) brand and is the second largest digital-first omni-channel jewellery brand in India in terms of revenue for FY24, as per RedSeer Report.

• Satyam’s chairman and founder confessed in January 2009 to misappropriating about $1.5 billion of company funds
• Scandal shook confidence in Indian corporate governance and the country’s IT services industry
• Transparently.ai’s AI tools detected accounting red flags in Satyam as early as 1998

• GFL is executing a INR 6,000 crore capex plan through FY28 to expand into battery materials, fluorospecialties etc. with commercial production of Battery Chemicals expected to start in Q4 FY25. 
• This marks a strategic shift from a cyclical chemicals business to a high-margin, clean energy materials play positioning GFL at the core of the EV value chain as China+1 sourcing.
• Company is becoming a structural clean-tech growth story. The business could double its revenue base and become global EV materials supplier over the next 3-4 years.

• Sun Pharmaceutical Industries (SUNP IN) is set to acquire Checkpoint Therapeutics for $355 million, enhancing its onco-dermatology portfolio with UNLOXCYT™, an FDA-approved treatment.
• This strategic move provides Sun Pharma with immediate access to the U.S. market and the potential for global expansion, especially in the PD-1 inhibitor space.
• The acquisition promises revenue growth and synergistic opportunities, although regulatory approvals and successful integration are crucial for realizing its full potential.

• Knowledge Realty Trust (258259D IN)  looks to raise about US$712m through its upcoming India IPO. The lead bookrunners for the deal are Kotak, Axis, BoFA, ICICI, IIFL, JMFin, MS, SBI.
• Knowledge Realty Trust (KRT) owns and manages a high-quality office portfolio in India. KRT covered 87% of India’s office supply and gross absorption between FY16-9M24, as per CBRE report.
• The portfolio includes 6 city-center offices and 24 business parks/centers.  These assets are spread across 6 cities — Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City.

• The Indusind Bank (IIB IN) stock was down 27% yesterday following the announcement of Derivatives Portfolio losses that have wiped out 2.35% of equity.
• Foreign investors were big sellers in the last 3 months of 2024. That led to increased foreign room, leading to an index upweight in February and index inclusion in March.
• The drop in market cap and free float market cap will see Indusind Bank (IIB IN) deleted from the S&P BSE SENSEX Index in June and the NIFTY Index in September.

• IndusInd Bank recently disclosed a significant accounting discrepancy in its derivatives portfolio, estimated to impact its net worth by INR 1,580 crore (~2.35%). 
• The issue pertains to internal trades executed over the past 7–8 years, now identified through a detailed internal review initiated following regulatory changes.
• This development, when viewed alongside the abrupt CFO exit, regulatory pushback on CEO tenure, and existing operational challenges, raises concerns around internal controls, risk governance, and management credibility.

• Bank Of Baroda (BOB IN) is looking to raise about INR 85bn (US$980m) in its upcoming qualified institutional placement (QIP).
• In an announcement released on Feb 13, 2025, BOB mentioned its board’s approval to raise upto INR85bn via various modes including a QIP. Since then, the shares have corrected 1.2%.
• The deal would be a relatively large one to digest at 39 days of three month ADV. The company’s last fundraise did not do well.

• Narayana Hrudayalaya Ltd (NARH IN) is a prominent player in the Indian healthcare sector, distinguished by its commitment to providing affordable, high-quality medical services.
• The company established its first international hospital in the Cayman Islands in 2014, targeting patients from the Americas and Caribbean regions by offering competitively priced medical services
• Management has outlined a capex guidance of around INR 4,000 crores over the next 3 to 4 years, funded by healthy cash flows and stable operating margins.

• Shilpa Medicare (SLPA IN) will begin commercializing new molecules across segments, driving growth to new heights as older products are phased out, ensuring sustained progress and innovation in its business.
• In recent years, the company has experienced growth stagnation and declining profitability due to US FDA issues affecting both the company and its key client in the API segment.
• The company’s pipeline of new molecules offers significant growth potential, with a single successful molecule poised to elevate the company to unprecedented levels over the next five years.

• Sun Pharmaceutical Industries (SUNP IN) (SPIL) announced the plan to acquire Checkpoint Therapeutics (CKPT US), a commercial stage immunotherapy and targeted oncology company, for ~$200M.
• In December, Checkpoint has received FDA approval for its maiden drug, Unloxcyt (cosibelimab), for the treatment of certain type of skin cancer. Unloxcyt has peak sales estimate of $1.6B.
• SPIL’s offer for Checkpoint seems compelling and provides superior risk-adjusted value. However, the acquisition will not be near-term value generator for SPIL, which doesn’t have good track record for acquisition.

• COAL’s production growth during Apr-Feb 25 has slowed to 1.5% yoy due to a high base effect and is unlikely to grow significantly in the near future
• Regulated pricing mechanism means low correlation to international price movements. E-auction (10-12% of volumes) prices crash -25% yoy in line with international trends, impacting profitability
• Single digit PE is in line with historic multiples. Wage renegotiations due in June 2026, rising coal production from captive producers, surge in renewable capacities are headwinds

Bharti Airtel is the second-largest telecom player in India, with a c. 30% market share. It also has significant operations in Africa, and to a smaller extent Bangladesh and Sri Lanka. The largest shareholders are Bharti Enterprises (42%) and Singtel (14%). Bharti Enterprises was founded/owned by Sunil Bharti Mittal. It is one of India’s first conglomerates, with interests in telecommunications, space, insurance, real estate, hospitality and food.

We view Bharti Airtel as “Low Risk” on the LARA scale, mainly given its strong market position as the second-largest player in India’s telecom industry. The company owns robust network infrastructure across the country, with a broad customer base. We also note positively the improving industry outlook, with rationalising competition and industry consolidation benefiting Bharti Airtel, along with improving regulatory conditions. The company is committed to prudent balance-sheet management and stable leverage. However, capex requirements will likely remain substantial given Bharti Airtel’s 5G rollout, with a risk that capex will be higher than projected.

• Strong focus on capacity enhancement. Increasing steelmaking capacity by 65% over the next 3 years to 15.9mt.
• Recent margin dip provides attractive entry point. Promoters/insiders have bought into recent decline in stock price
• Attractive long-term play on rising domestic steel demand. Low debt levels at <1.4x EBITDA allows for steady capacity addition. 

• The Nifty snapped its losing streak with a sharp rebound, rising 1.92% for the week.
• Implied volatility struggled to hold up, trading lower through most of the week.
• We break down the implied vs. historic vol relationship and what it signals for traders.

• Gensol clarified that debt woes are because of short term liability mismatch which contradicts with Lender’s clarification
• Promoter said they will buy from the open market and will also infuse money into company but their recent stake sale again contradicts.
• 2nd CFO Resignation within 6 months further raises alarm over governance issues.

• Play on rising aluminium demand. Aluminium demand has outpaced supply with strong Chinese demand. 
• Management has guided better margins at Novelis which faced a temporary drop in margins due to scrap shortages.
• Hindalco’s Indian operations are fully integrated with captive bauxite, alumina and to certain extent for energy. Trades at a 20%+ discount to its historic PE multiples.

• NACL posted its best ever quarterly performance in 3QFY25, driven by a sharp spike in alumina prices. Alumina prices have since cooled off but remain elevated at above US$450/t
• NACL is set to expand its alumina capacity by 33% over the next 12 months. This will help double its external alumina sales from 1mt to 2mt. 
• Trades at 25% discount to historic PE of 13x despite record earnings, healthy balance sheet and strong near-term volume growth driven by brownfield expansion.

• Jai Corp Ltd (JFI IN) allegedly misappropriated INR2,434 crore from investors, diverted funds offshore, and engaged in fraudulent trading, triggering CBI probe into financial misconduct, money laundering, illegal stock manipulation.
• The Bombay High Court directed a CBI investigation after allegations surfaced of fake exports, foreign currency loan diversion, and fund rotation through shell companies in Mauritius and Jersey.
• Jai Corp claims no official notice of the FIR yet but pledges full cooperation; investors await regulatory actions from SEBI, RBI, and ED, which could impact the company’s financial standing.