india Archives | Page 31 of 152 | Smartkarma

In today’s briefing:

The Beat Ideas: Blue Jet Healthcare- Rising CDMO Player
EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.
KPIT Tech: Strong Q3Y25 Despite Challenging Environment
The Beat Ideas: Sigachi Industries- High Growth, Revenue Diversification, New Category Launch
Rubber Board Launches Twin Projects To Propel Indian NR

The Beat Ideas: Blue Jet Healthcare- Rising CDMO Player

Blue Jet Healthcare Ltd (BJHC IN) is a science-led pharmaceutical company that has evolved into a strategic partner for the CDMO of advanced Pharmaceutical Intermediates and APIs.
Company gave a record breaking Q3FY25 primarily driven by capacity expansion in Contrast media and PI Segment. Strong demand for the cardiovascular product was also witnessed.
Company commissioned an additional manufacturing block during Q3 FY25 at Ambernath for manufacturing Advance Contrast Media with investment around Rs. 100Mn.

EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.

By Gaudenz Schneider

NSE Nifty Bank Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
Putting implied volatility into context with the NSE Nifty Bank Index 200 day moving average will lead to a different conclusion. Selling volatility might not be the opportunity it seems.
This Insight provides a quantitative indication at which level implied volatility can be assessed as rich.

KPIT Tech: Strong Q3Y25 Despite Challenging Environment

By Ankit Agrawal, CFA

KPIT Technologies (“KPIT”) reported decent growth despite challenging macroeconomic environment in the automotive OEM segment. Q3FY25 revenue grew 17.4% YoY and 2.0% QoQ in constant currency (CC) terms.
Led by improved efficiency and revenue mix, EBITDA margin came in stronger than expected at 21.1%. This led KPIT to raise its FY25 EBITDA guidance to 21%+ from 20.5%+.
Deal engagement has been strong. TCV came in at $236mm vs typical run-rate of $150mm+. Deal pipeline is also healthy and the management is expecting substantial closures by H1FY26.

The Beat Ideas: Sigachi Industries- High Growth, Revenue Diversification, New Category Launch

Sigachi Industries (SIGACHI IN) has increased MCC capacity to 21,700 MTPA and expects to achieve 80-90% utilization by Q4 FY27 from 50% utilization in Q4FY25.
Sigachi is increasing its focus on the API segment, with a target of 20-25% revenue contribution in next 2-3 yrs and further expanding to 35-40% of revenue in 3-5 Yrs.
Sigachi is introducing new product lines including pharmaceutical coatings like PureCoat and UltraMod and plans to commercialize Croscarmellose Sodium (CCS) by FY26 to enhance drug stability and bioavailability.

Rubber Board Launches Twin Projects To Propel Indian NR

By Vinod Nedumudy

iSNR (Indian Sustainable Natural Rubber) to deal with EUDR
INR Konnect to help idling plantations come alive
iSNR to fetch a premium of 10-35% in global markets

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Jan 31

Daily Brief India: Whirlpool of India, Lumino Industries Ltd, Veritas Finance Ltd, Krishca Strapping Solutions, Bajaj Finance Ltd, NIFTY Index and more

In today’s briefing:

Whirlpool Corporation’s Big Exit: What’s Behind the Stake Reduction?
Lumino Industries Ltd Pre-IPO Tearsheet
Veritas Finance Pre-IPO Tearsheet
Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?
What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?
EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems

Whirlpool Corporation’s Big Exit: What’s Behind the Stake Reduction?

Whirlpool Corp (WHR US) plans to sell a 31% stake in Whirlpool of India (WHIRL IN) reducing ownership to 20% by 2025, triggering a 20% decline due to valuation concerns.
The implied sale valuation is lower than market expectations, raising concerns about growth, profitability, and stock overvaluation, while the parent company capitalizes on an asset arbitrage opportunity.
Short-Term stock pressure due to stake sale overhang, declining profitability, and reduced parent control, but potential long-term re-rating if operational performance improves.

Lumino Industries Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Lumino Industries Ltd (0349204D IN) is looking to raise about US$116m in its upcoming India IPO. The bookrunners for the deal are Motilal, JM Fin, Monarch.
Lumino Industries Ltd (LIL) was established in 2005. The company is a product-driven integrated engineering, procurement, and construction (EPC) player in India.
As per CRISIL Report, Lumino Industries is recognized as the fastest-growing player in the conductors, power cables, and power EPC industry, in terms of revenue CAGR between FY22 to FY24.

Veritas Finance Pre-IPO Tearsheet

By Akshat Shah

Veritas Finance Ltd (1392490D IN) is looking to raise around US$323m in its upcoming India IPO. The bookrunners on the deal are ICICI, HDFC, Jefferies, Kotak and Nuvama.
Veritas Finance Limited (VFL) is a retail focused non-banking finance company (NBFC) in India primarily providing loans to micro small and medium enterprises (MSMEs) and self-employed individuals.
As per the CRISIL report, the firm was the fastest-growing NBFC in terms of AUM growth during FY22-24, growing at a CAGR of 61.76%.

Can Krishca Strapping Solutions Maintain Momentum Amidst Steel Price Volatility?

Krishca Strapping Solutions (KRISHCA IN) is India’s first “Lead-Free” and eco-friendly production line for the heat treatment of steel strapping.
The company is aggressively pursuing growth, aiming for a 25% revenue increase in the current financial year and EBITDA margin is anticipated to stay between 15% and 20%
The company is investing in a new special steel production plant in Chennai and launching subsidiaries in the UAE and Singapore to tap into new markets

What the Airtel-Bajaj Finance Partnership Means for Their Growth Plans?

Airtel-Bajaj Finance partnership is a game-changer in the digital financial services sector in India. It combines the strengths of both companies to create a powerful platform.
By leveraging Airtel’s extensive distribution network and Bajaj Finance’s financial expertise, this collaboration has the potential to disrupt the market and challenge established players.
It follows the successful playbook of other global partnerships and demonstrates how digital platforms and financial institutions can work together to enhance financial accessibility

EQD | Nifty 50 Option Strategy – Implied Volatility Is Not as Rich as It Seems

By Gaudenz Schneider

NIFTY Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
Putting implied volatility into context with NIFTY Index market levels and trends will lead to a different conclusion. Implied volatility is not nearly as rich as conventional measures suggest.
This Insight provides a quantitative indication at which price implied volatility can be assessed as rich, given current relative index levels.

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Jan 30

Daily Brief India: Vedanta Ltd, Ather Energy, Goodluck India and more

In today’s briefing:

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger
Ather Energy Pre-IPO – The Negatives – Outpaced by Rivals
The Beat Ideas: Goodluck India Accelerating Margin Growth with Value-Added Products & Defence

Event Driven: Vedanta Ltd: A Story of Wealth Creation Through Demerger

Vedanta Ltd (VEDL IN) plans a multi-segment demerger to unlock value by separating its aluminum, zinc, oil and gas, steel, and other core operations into standalone entities.
This restructuring aims to eliminate conglomerate discount, foster specialized leadership, and attract fresh capital, potentially enhancing overall valuations and fueling long-term growth across diversified segments.
Despite governance concerns and cyclical commodity risks, pure-play listings could catalyze re-ratings, offering heightened returns but requiring vigilance on execution and corporate transparency.

Ather Energy Pre-IPO – The Negatives – Outpaced by Rivals

Ather Energy is looking to raise about US$536m in its upcoming India IPO.
Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
In this note, we talk about the not-so-positive aspects of the deal.

The Beat Ideas: Goodluck India Accelerating Margin Growth with Value-Added Products & Defence

Goodluck India (GLIN IN) is expanding into high-value defense and precision tube segments, aiming to diversify beyond its low-margin steel products and capitalize on India’s growing domestic manufacturing push.
These strategic moves can enhance margins, reduce commodity price exposure, and capture rising demand from auto, defense, and infrastructure sectors, strengthening Goodluck’s long-term profitability.
Aiming for 2x revenue in next 3-4 years with margin expansion in all the segments apart from commodity segment.

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Jan 29

Daily Brief India: Dr Agarwal’s Health Care Ltd, Frontier Springs, Ather Energy, United Breweries and more

In today’s briefing:

Dr Agarwal’s Healthcare IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
The Beat Ideas: Frontier Springs, A Proxy Play to Capitalizing on Indian Railway Capex Boom
Ather Energy Pre-IPO – The Positives – One of the E2W Pioneers
United Breweries On and Off with Telangana Government

Dr Agarwal’s Healthcare IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation

By Akshat Shah

Dr Agarwal’s Health Care Ltd (8140044Z IN) is looking to raise about US$350m in its India IPO. The deal is downsized from an earlier reported size of around US$480m.
Dr Agarwal’s Health Care is a healthcare/hospital chain in India providing eyecare services, including surgeries; consultations, diagnoses, non-surgical treatments; and sells opticals, contact lens, accessories and eyecare related pharmaceutical products.
Previously, we have looked at the company’s past performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.

The Beat Ideas: Frontier Springs, A Proxy Play to Capitalizing on Indian Railway Capex Boom

Frontier Springs (FS IN) is poised for growth, driven by India’s robust railway sector expansion and increased demand for LHB coaches which is reflected in their expanding margins and profitability.
Company is aiming for 250Cr by FY25 and 500Cr by FY27 with sustainable margins for 18-20%.
Company is completely booked for next 6-8 months and air spring division is booked completely for next year. Also looking for acquisition in the segment.

Ather Energy Pre-IPO – The Positives – One of the E2W Pioneers

Ather Energy is looking to raise about US$536m in its upcoming India IPO.
Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
In this note, we talk about the positive aspects of the deal.

United Breweries On and Off with Telangana Government

United Breweries resumed beer supplies in Telangana after earlier suspending them due to unprofitable pricing and unpaid dues.
Resolution ensures vital revenues for both state and brewery, while highlighting persistent regulatory and pricing hurdles in India’s top beer market.
This standoff reveals the leverage breweries hold in regulated regions, where strategic halts can push authorities toward fairer policies and improved business conditions.

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Jan 28

Daily Brief India: Zomato, SGX Rubber Future TSR20, Macrotech Developers, Dr Agarwal’s Health Care Ltd, BCL Industries, Gujarat Fluorochemicals, JSW Steel Ltd, Hexaware Technologies and more

In today’s briefing:

India Food Delivery | Old Habits Die Easy
IFC’s US$I25 Million Boost To Tire Manufacturing In India, Pakistan
Macrotech Developers : Decoding Family Feud and Corporate Governance Overhang
Dr Agarwal’s Health Care IPO: Profitable Business Expansion Amid Favorable Demand to Drive Growth
The Beat Ideas: BCL Industries, An Ethanol Play
Gujarat Fluro’s New Growth Lever: Battery Chemicals, Fluoropolymers and Aim for 4x EBITDA in 3 Years
Lucror Analytics – Morning Views Asia
Hexaware Technologies Pre-IPO- Decent Long-Term Track Record, Although a Large Overhang to Watch For

India Food Delivery | Old Habits Die Easy

By Pranav Bhavsar

Gen Z consumers prioritize price over brand loyalty, affecting restaurateurs’ pricing strategies.
Increasing platform dominance and discounting culture hinder profitability for restaurants in the competitive food delivery landscape.
Food delivery companies are pivoting from mere consumer tech-enabled logistics businesses to data-driven market-dominant behemoths.

IFC’s US$I25 Million Boost To Tire Manufacturing In India, Pakistan

By Vinod Nedumudy

Greenfield tire production facility to come up in Sindh, Pakistan
JK Tyre to get US$100 million sustainability loan for expansion
Sustainability-linked loan a first in India’s tire industry

Macrotech Developers : Decoding Family Feud and Corporate Governance Overhang

The Lodha brothers, Abhishek and Abhinandan, are locked in a legal battle over the use of the “Lodha” brand, despite a 2017 family settlement agreement.
Macrotech Developer is seeking a perpetual injunction against HoABL to cease the use of the “Lodha” brand in any form and is demanding INR5,000 crore in damages.
The Bombay High Court on January 21 said that it would hear on January 27 the application filed by Abhishek Lodha-promoted Macrotech Developers Ltd

Dr Agarwal’s Health Care IPO: Profitable Business Expansion Amid Favorable Demand to Drive Growth

By Tina Banerjee

Dr Agarwal’s Health Care is looking to raise ~$350M from its upcoming India IPO, which is a combination of fresh issue and OFS. The IPO price band is INR382–402.
The company intends to utilize INR1.95B out of the fresh issue proceeds to repay its debts, which stand at INR3.61B as of December 31, 2024.
The company’s proven capability to scale up the operation amid cut-throat competition and profitable business operation enhance our conviction on the long-term growth prospect of the company.

The Beat Ideas: BCL Industries, An Ethanol Play

BCL Industries (BCLIL IN) is pivoting from volatile edible oils to a robust grain-based ethanol portfolio, leveraging its local sourcing advantage for upcoming capacity expansions.
Government incentives and rising domestic demand are fueling higher margins, making BCL’s dedicated distilleries and fungible capacities key drivers in India’s booming ethanol sector.
Its reliable execution, targeted capacity expansions, and pivot away from low-margin oils emphasize BCL’s potential as a high-growth, stable margin player in a rapidly evolving industry.

Gujarat Fluro’s New Growth Lever: Battery Chemicals, Fluoropolymers and Aim for 4x EBITDA in 3 Years

Gujarat Fluorochemicals (FLUOROCH IN) new Fluoropolymer(FP) segment is projected to be a key revenue growth driver for the company in the medium term.
The company is committed to significant capacity expansion in the FP segment and aims to commercialize new FP products, particularly EV battery chemicals, in the second half of fiscal 2025.
While the FP segment holds strong growth potential, the ramp-up of new-age FPs and the potential reliance on debt-funded capex are areas to monitor.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In the US, the S&P preliminary services PMI fell to 52.8 (56.5 e / 56.8 p), while the manufacturing PMI edged up to 50.1 (49.8 e / 49.4 p).
The preliminary composite PMI declined to 52.4 (55.6 e / 55.4 p). Separately, the January (final) University of Michigan consumer sentiment index decreased to 71.1 (74.0 p).
Treasuries climbed slightly, following the weaker than expected January preliminary PMI data.

Hexaware Technologies Pre-IPO- Decent Long-Term Track Record, Although a Large Overhang to Watch For

By Clarence Chu

Hexaware Technologies (HEXW IN)is looking to raise about US$1.2bn in its upcoming India IPO.
Hexaware is a global digital and technology services company with AI at its core, delivering innovative solutions that help customers in their digital transformation journey and subsequent operations.
In this note, we look at the firm’s past performance.

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Jan 27

Daily Brief India: IREDA, NIFTY Index and more

In today’s briefing:

Indian Renewable Energy (IREDA IN) QIP: Index Implications
EQD / NSE NIFTY50 Vol Update / India Budget Event Dominates Local Options Markets.

Indian Renewable Energy (IREDA IN) QIP: Index Implications

By Brian Freitas

IREDA has announced a Qualified Institutional Placement (QIP) of a maximum of INR 50bn as long as the Government of India’s holding does not drop by more than 7%.
There will be passive buying at the time of settlement of the QIP shares while the increase in float will bring the stock closer to inclusion in another global index.
With the stock close to index inclusion level and down 37% from its peak, there could be positioning in the stock for passive inflows.

EQD / NSE NIFTY50 Vol Update / India Budget Event Dominates Local Options Markets.

By Sankalp Singh

Monthly Options contracts experiencing large IV markups on account of India Budget event. IVs have traded up to 18.0%. YTD vol increase marks a significant shift in the Vol-regime.
Gamma offered & Vega bid – Weekly Options contracts relatively out-of-favour while Monthly & Quarterly contracts are being marked up.
Skew & Smile characteristics have compressed slightly. Vol term-structure continues to trade with “inverted-V” shape.

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Jan 26

Daily Brief India: Kalyan Jewellers and more

In today’s briefing:

Kalyan Jewellers- Grey Areas Surrounding Inventory

Kalyan Jewellers- Grey Areas Surrounding Inventory

By Nitin Mangal

Kalyan Jewellers (KALYANKJ IN), one of the largest Indian jewellery player, has been under the limelight for various allegations and misconducts, including possibility of inventory overstatement.
In this insight, we try to look at the inventory from the forensic lens and uncover the disparity in accounting.
We also note that operating cash flows are boosted by movement in metal loans while company also has several RPT with promoters, especially on the purchases side.

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Jan 25

Daily Brief India: Dr. Reddy’s Laboratories, Bharti Airtel and more

In today’s briefing:

Dr. Reddy’s Laboratories (DRRD IN): Q3FY25 Result- Subdued US Business Dents Margin; Somber Outlook
Lucror Analytics – Morning Views Asia

Dr. Reddy’s Laboratories (DRRD IN): Q3FY25 Result- Subdued US Business Dents Margin; Somber Outlook

By Tina Banerjee

Dr. Reddy’s Laboratories (DRRD IN) reported Q3FY25 US business revenue of INR33.8B, up 1% YoY, mainly dragged by lower contribution from Lenalidomide. Q3FY25 EBITDA margin deteriorated to 27.5% (Q3FY24: 29.3%).
Limited growth catalysts remain major overhang. No near-term key launches lined-up to fill the void created by Lenalidomide. Moreover, paltry new launches in the U.S. entail limited revenue visibility.
Lack of near-term catalyst and bleak growth outlook justify cheaper valuation of Dr. Reddy’s. We do not consider Dr. Reddy’s as value buying opportunity and remain bearish on the name.

Lucror Analytics – Morning Views Asia

By Trung Nguyen

In today’s Morning Views publication we comment on developments of the following high yield issuers: Bharti Airtel, SK Hynix, Adani Green Energy, Wynn Macau, New World Development

In the US, initial jobless claims for the week ended January 18th rose slightly to 223 k (220 k e / 217 k p). Meanwhile, continuing claims climbed to a three-year high of 1.90 mn (1.87 mn e / 1.85 mn p).
Treasuries ended mixed yesterday. The yield on the 2Y UST declined 1 bp to 4.29%, while the yield on the 10Y UST grew 3 bps to 4.64%.

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Jan 24

Daily Brief India: Dr Agarwal’s Health Care Ltd, Continuum Green Energy Ltd and more

In today’s briefing:

Dr Agarwal’s Healthcare Pre-IPO – Strong Revenue Growth Led by Expanding Network of Facilities
Continuum Green Energy Pre-IPO: ESG Friendly but Burning Prodigious Amounts of Cash

Dr Agarwal’s Healthcare Pre-IPO – Strong Revenue Growth Led by Expanding Network of Facilities

By Akshat Shah

Dr Agarwal’s Health Care Ltd (8140044Z IN) is looking to raise about US$480m in its upcoming India IPO.
Dr Agarwal’s Health Care is a healthcare/hospital chain in India providing eyecare services, including surgeries; consultations, diagnoses, non-surgical treatments; and sells opticals, contact lens, accessories and eyecare related pharmaceutical products.
In this note, we talk about the company’s historical performance.

Continuum Green Energy Pre-IPO: ESG Friendly but Burning Prodigious Amounts of Cash

By Nicholas Tan

Continuum Green Energy Ltd (1580973D IN) is looking to raise about US$430m in its upcoming India IPO.
Continuum Green Energy (CGE) is an independent power producer (IPP) with over 14 years of experience in identifying, developing, constructing and operating renewable energy projects in India.
In this note, we look at the firm’s past performance.

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Jan 23

Daily Brief India: HDB Financial Services Ltd, Vikran Engineering Limited, Greenko Energy Holdings and more

In today’s briefing:

HDB Financial Services Pre-IPO – The Positives – Reputed Parent and Strong AUM Growth
Vikran Engineering Limited Pre-IPO – Capitalizing On Core Competencies But With Concentration Risks
HDB Financial Services Pre-IPO – The Negatives – Performance Has Been Slipping
Lucror Analytics – Morning Views Asia

HDB Financial Services Pre-IPO – The Positives – Reputed Parent and Strong AUM Growth

HDB Financial Services (HDBFS) is looking to raise around US$1.5bn in its upcoming India IPO.
HDBFS is a leading retail-focused non-banking financial company (NBFC) in India, in terms of total gross loan book size, according to the CRISIL Report.
In this note, we talk about the positive aspects of the deal.

Vikran Engineering Limited Pre-IPO – Capitalizing On Core Competencies But With Concentration Risks

By Rosita Fernandes

Vikran Engineering Limited (1635154D IN) (VEL) is planning to raise about US$119m through its upcoming India IPO.
Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects.
According to CRISIL Report, VEL has experienced fastest growth in profitability, with a 236.94% CAGR growth in PAT and a 130.02% CAGR growth in EBITDA between FY22 to FY24.

HDB Financial Services Pre-IPO – The Negatives – Performance Has Been Slipping