india Archives | Page 33 of 152 | Smartkarma

• Brigade Hotel Ventures Ltd (BHV IN) is an owner and developer of hotels in India, focusing primarily on South India, plans to raise about US$107m through its upcoming India IPO.
• It has a current portfolio of  9 operating hotels, of which, 4, 3 and 2 are operated under Accor, InterContinental, Marriott brands.
• BHVL intends to use the IPO proceeds primarily to repay debt of INR 4.8bn and to purchase land from the promoter for further expansion.

• CDSL is a market infrastructure company operating in the Indian equity capital markets with a $2.5 billion enterprise value
• The company has shown consistent revenue growth over the past decade and listed on the NSE in 2017
• With strong shareholder support and expected mid-teens CAGR growth, CDSL is seen as a buy and hold investment with potential for outperformance compared to major Indian indices

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Aye FInance Ltd (1239156D IN) (AFL) is looking to raise about US$171m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, JM Fin, Nuvama.
• AFL is a non-banking financial company – middle layer (NBFC-ML) that focuses on providing loans to micro, small, and medium enterprises (MSMEs) across India.
• According to CRISIL Report, AFL is recognized as the fastest-growing NBFC in India among its peers with YoY AUM growth between FY24 and FY23, achieving a growth rate of 64%.

• Fineotex Chemical is a small mid cap business in India with a $480 million enterprise value, listed on the Bombay Stock Exchange since 2011
• The author predicts the stock to multiply 5x in the next decade and outperform the Sensex and NIFTY indices
• Fineotex is a specialty chemical manufacturer with strong growth potential, increased production capacity, and a wide export network, positioning it for long-term success.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Sarla Performance Fibers Limited is engaged in the manufacturing and export of high-performance polyester and nylon yarns.
• Increasing capacity utilisation towards higher value-added products, such as Nylon 6 & 66 and high-tenacity yarn, is expected to boost revenue and improve operating margin.
• A valuation re-rating is also possible if the return metrics (RoE, RoCE) improve as the utilisation level rise.

• Farmer body asks farmers not to go for ‘summer tapping’
• Rubber Board exhorts farmers to up tapping to discourage imports
• Farmers allege Rubber Board catering to interests of tire-makers

• JSW Energy faces a significant regulatory setback with the rejection of its proposed tariff for a 500 MW/1000 MWh Battery Energy Storage System project by the Central Electricity Regulatory Commission. 
• This decision highlights the vulnerability of renewable energy ventures to regulatory changes, potentially leading to project delays, tariff renegotiations, and broader market uncertainty, which could impact India’s renewable energy goals.
• The impact of this could be multiple ripple effects including project delays, financial loss, viability concerns of battery storage business.

• Synergy Green Industries (SYGIL IN) Expansion of foundry to add new capacity to supply new customers (Envision). Company plans to increase its capacity from 30,000 MT to 45,000 MT.
• Machining unit to help improve margins as 50% of total machining would be done in-house. Solar power to add to EBITDA margins as electricity costs account for 8% of revenue. 
• Execution by management has been commendable due to experience in the industry.

• Zomato (ZOMATO IN) and Jio Financial Services (JIOFIN IN) should replace Bharat Petroleum Corp (BPCL IN) and Britannia Industries (BRIT IN) in the NIFTY Index (NIFTY INDEX) in March.
• Passive NIFTY Index trackers will need to trade at least 4.5x ADV and 8.8x delivery volume on the stocks. There is some opposite flow from Nifty Next 50 Index trackers.
• There does not appear to be a lot of positioning in Jio Financial Services (JIOFIN IN) and the stock could outperform its peers over the next few months.

• IVs higher alongside the underlying index. Weekly expiry (02.01.2025) served as the inflection point sending IVs back down. Monthly IVs: 12.7% (Open) -> 14.4% (02.01.2025) -> 13.3% (Close).
• Vol Term-structure swung between Contango & Backwardation around expiry date. Skew in Monthly contracts compressed as IVs moved higher. Smile unchanged. 
• Trading Strategy Implications: Reengage Smile/ Vega harvesting structures. Abandon wait-and-watch stance – “High & Down” vol state confirmed. 

• Anthem Biosciences (1234D IN), a Contract Research, Development, and Manufacturing Organization, has filed DRHP for INR34B IPO. The proposed IPO will be only offer for sale, with no fresh issue.
• Anthem Biosciences is one of three CRDMOs that possess technological capabilities in India across ADCs, RNAi, peptides, and oligonucleotides, which are among the fastest growing in the pharmaceutical industry.
• Differentiated technological capabilities, large clientele, and exposure to commercialized molecules enhance our conviction on the sustainable growth prospect of the company. Industry backdrop is also favorable.

• Timing expiration, assessing volatility, and managing event risk are crucial for effective option trades.
• Exchange holidays, expiries, central bank rate decisions, and index changes can significantly impact volatility and market direction.
• The attached document provides key dates to help navigate the complexities of option trading in Australia, Hong Kong, India, Japan, South Korea, and the USA.

• Reliance bought 5,286 acres of prime industrial land in Navi Mumbai, which was sold for a surprisingly low INR 2,200 cr whose economic value is around INR 1 Lakh cr.
• This complex transaction done at a steep discount raises corporate governance issues for other shareholders like Jai Corp owing to valuations, disclosure lapses and minority shareholder rights.
• We delve into details of the deal structure and what it means for respective companies’s shareholders.

• MSTC Limited (MSTCLTD IN) is transitioning to an e-commerce-centric model, reducing dependence on trading sales and focusing on high-margin e-commerce services.
• MSTC sold its subsidiary Ferro Scrap Nigam Limited for an amount of Rs. 300 Crores which will be utilised in the near future.
• MSTC has a strong cash position (Rs. 1,300 Cr) that can be used for special dividends, growth-oriented investments, or share buyback programs.

• Favorable reservoir level, an uptick in Kharif Harvest, and strong sowing for the Rabi season are expected to drive good demand for tractors in the medium term.
• We summarize the sales volume published by listed players Mahindra & Mahindra(M&M), and Escorts Kubota Limited.
• Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like GNA Axles Ltd (GNA IN) in medium term.

• ITC Ltd (ITC IN) will demerge its Hotels business with the ex-date set as 6 January and shareholders receiving 1 share of ITC Hotels for 10 shares of ITC Ltd.
• ITC Ltd (ITC IN) shareholders will own 100% of ITC Hotels – 60% will be owned directly and 40% will be owned through their shareholding in ITC Ltd (ITC IN).
• There will be a lot of selling in ITC Hotels within a few days of listing from different passive index trackers and that could provide buying opportunities for those interested.

• ITC Hotels is demerging with ITC Ltd (ITC IN) to create value for ITC shareholder and unlock value in hotel business.
• Record date for ITC Hotel demerger is 6-Jan-25 and listing can be done in 60 days after NCLT order i.e. 16-Dec-24.
• Discussed inclusion and exclusions of various Index including MSCI Emerging Markets Index (MXEF INDEX), FTSE and NIFTY Index (NIFTY INDEX) & S&P BSE SENSEX Index (SENSEX INDEX EQUITY).

• ITC Ltd (ITC IN) Hotels demerger aims to unlock the intrinsic value of the hotels business and enable a sharper focus on growth.
• ITC Hotels is aiming to reach a portfolio of 200+ hotels with 18,000+ keys by 2030 from a robust pipeline of 140 Hotels with about 13000 Keys in 2024.
• ITC Hotels inheriting a strong balance sheet with zero debt and cash reserves may list around 113-170 per share.

• CEAT buys Off-Highway Tires (OHT) business and Camso brand for US$225 million
• CEAT to access 40 global OEMs and a vast network of OHT distributors
• Michelin expands Chennai TBR tire plant, spending US$66 million

• GNA Axles is a cyclical play driven by revival of the tractor industry in India and pre-buying in commercial vehicles(trucks) in the U.S. market.
• A good monsoon in India in 2024 is expected to revive domestic tractor demand, while changes in emission regulations in the U.S. are likely to increase truck sales.
• The company is currently valued at a comfortable 18x trailing P/E, with a 15% RoE and RoCE.

• The acquisition of O2 Power brings with it a robust portfolio of 4,696 MW of renewable energy assets, wherein JSWE’s Current operational capacity stands at 7740 MW
• JSW Energy’s total locked-in generation capacity will reach nearly 24,708 MW by June 2027, marking a substantial increase of 23% from its previous capacity of 20,012 MW
• JSW Energy can leverage its in-house EPC and O&M capabilities to unlock further value from the 4.7 GW portfolio.

• SEBI uncovered insider trading during the HDFC-HDFC Bank merger, implicating a Deloitte employee and his associate, who profited Rs. 8.19 lakh using call options and confidential merger details.
• This case highlights the increasing sophistication of insider trading tactics and reinforces the critical need for stricter compliance to protect investor trust and ensure market transparency.
• The case demonstrates SEBI’s growing reliance on advanced analytics to identify market anomalies, ensuring accountability even in complex trading schemes involving proxy accounts and derivative instruments.

• Triveni Engineering & Industries (TRE IN)’s acquisition of Sir Shadi Lal Enterprise Limited is expected to add to the bottom line as it is located in the same region.
• The resumption of the molasses-based Ethanol plant would benefit as the previous year’s company closed operations early due to non-availability of cane.
• The demerger of the turbine is expected to be the major value-creation proposition.

• In this insight, we focus on the textile industry dynamics in India, Bangladesh, and Vietnam, particularly focusing on the “Bangladesh Plus One” sourcing strategy.
• Textile stocks have surged significantly, with an average increase of 13% in one month and 50% year-to-date, driven by investment narratives.
• Despite optimism in India, Bangladesh and Vietnam maintain competitive advantages, particularly in labor costs and export-oriented policies, affecting India’s market share.

• NFRA imposed a Rs. 2 crore penalty on Deloitte and fined two retired partners for audit lapses in Zee Entertainment Enterprises (Z IN)‘s Rs. 200 crore FD mismanagement involving RPTs.
• This case exposes serious flaws in audit practices, corporate governance, and related-party transaction scrutiny, emphasizing the rising importance of professional skepticism in financial audits.
• Audit reports aren’t infallible; investors must independently assess corporate governance and scrutinize financial assumptions, especially in listed companies with complex transactions.