Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Capital Markets

Meesho operates as a software development company. The Company provides a platform for online resellers. Meesho offers timely and secure payments, low returns, and shipping services. Meesho serves customers in India.

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<a href="https://www.smartkarma.com/entities/meesho-inc" target="_blank" data-smartkarma-citation="entities:35872:1" rel="noopener">Meesho (1546271D IN)</a>'s INR 52.4 bn IPO is currently open for subscription. It consists of fresh issue worth INR 42.5 bn and OFS component worth INR 11.7 bn </li>
<li>The company is India’s largest E-Com platforms in terms of placed orders and user base, and make its mark in the value segment, offering mostly unbranded and regional branded products. </li>
<li>While KPIs signal growth and operational efficiencies, Meesho is still a loss maker. It has high litigation risk and seeing rapid increase in impairments and write offs with receivables</li>
</ul>



Meesho (1546271D IN)'s INR 52.4 bn IPO is currently open for subscription. It consists of fresh issue worth INR 42.5 bn and OFS component worth INR 11.7 bn 
The company is India’s largest E-Com platforms in terms of placed orders and user base, and make its mark in the value segment, offering mostly unbranded and regional branded products. 
While KPIs signal growth and operational efficiencies, Meesho is still a loss maker. It has high litigation risk and seeing rapid increase in impairments and write offs with receivables


Meesho Ltd IPO- Watch Out for Impairment Allowance

Forensic Accounting

Olectra Greentech Limited manufactures automobiles. The Company produces and supplies electric buses using silicon rubber polymer composite insulators. Olectra Greentech serves customers in India.

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<a href="https://www.smartkarma.com/entities/olectra-greentech-ltd" target="_blank" data-smartkarma-citation="entities:40365:1" rel="noopener">Olectra Greentech (OLECTRA IN)</a> , part of the MEIL Group, has transformed from a power insulator manufacturer into a pioneer and leading player in India's electric mobility segment.</li>
<li>The company is primarily known as the largest pure-electric bus manufacturer in India, operating through a long-term technology partnership with China's BYD Auto Industry Co Ltd.</li>
<li>Heavy reliance of the company on its associates for the sale of EVs, along with supplier concentration warrants attention. However, cash flow generation is improving, which is a positive</li>
</ul>



Olectra Greentech (OLECTRA IN) , part of the MEIL Group, has transformed from a power insulator manufacturer into a pioneer and leading player in India's electric mobility segment.
The company is primarily known as the largest pure-electric bus manufacturer in India, operating through a long-term technology partnership with China's BYD Auto Industry Co Ltd.
Heavy reliance of the company on its associates for the sale of EVs, along with supplier concentration warrants attention. However, cash flow generation is improving, which is a positive


Mphasis Limited is a global IT and BPO service provider to G2000 companies around the globe, assists its clients in innovating and streamlining their business processes by offering custom solutions for technology and operations outsourcing. The Company focuses on financial services, logistics and technology verticals.

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<a href="https://www.smartkarma.com/entities/mphasis-ltd" target="_blank" data-smartkarma-citation="entities:7672:1" rel="noopener">Mphasis Ltd (MPHL IN)</a> is a global information technology (IT) services and consulting company that specializes in providing cloud and cognitive services to help enterprises undergo digital transformation. </li>
<li>It is majority-owned by the Blackstone Group, one of the world's largest private equity firms.</li>
<li>Key forensic takeaways include hints of aggressive revenue booking via unbilled receivables, risk of goodwill impairment, etc.</li>
</ul>



Mphasis Ltd (MPHL IN) is a global information technology (IT) services and consulting company that specializes in providing cloud and cognitive services to help enterprises undergo digital transformation. 
It is majority-owned by the Blackstone Group, one of the world's largest private equity firms.
Key forensic takeaways include hints of aggressive revenue booking via unbilled receivables, risk of goodwill impairment, etc.


Mphasis Ltd- Unbilled Receivables to the Rescue

Capillary Technologies India Ltd (CTIL) / Equity Capital Markets

Capillary Technologies Pvt. Ltd. provides cloud-based software for engaging retail customers. The Company offers retailers help to intelligently engage with customers through mobile, social and in-store channels. Capillary Technologies markets its services internationally.

Capillary Technologies India Ltd (CTIL) (0611334D IN)

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<a href="https://www.smartkarma.com/entities/capillary-technologies-india-ltd-ctil" target="_blank" data-smartkarma-citation="entities:45404:1" rel="noopener">Capillary Technologies India Ltd (CTIL) (0611334D IN)</a> IPO has opened for subscription. It consists of fresh issue worth INR 3.45 bn along with OFS worth INR 5.33 bn.</li>
<li>Capillary is one of the rare SaaS companies having full stack offerings in customer loyalty and engagement solutions. It has a global presence and actively expanding to US and Europe. </li>
<li>While KPIs look good and company has turned around into profits, there are concerns with cash generation, overall consolidation process, increasing provision on receivables along with few governance issues.</li>
</ul>



Capillary Technologies India Ltd (CTIL) (0611334D IN) IPO has opened for subscription. It consists of fresh issue worth INR 3.45 bn along with OFS worth INR 5.33 bn.
Capillary is one of the rare SaaS companies having full stack offerings in customer loyalty and engagement solutions. It has a global presence and actively expanding to US and Europe. 
While KPIs look good and company has turned around into profits, there are concerns with cash generation, overall consolidation process, increasing provision on receivables along with few governance issues.


Capillary Technologies India IPO- Forensic Analysis

Lenskart Solutions / Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/lenskart-solutions" target="_blank" data-smartkarma-citation="entities:45634:1" rel="noopener">Lenskart Solutions (0370405Z IN)</a> much-awaited IPO, comprising a fresh issue of INR 21.5 bn and offer for sale of 127.5 mn shares, is set to open for subscription this week.</li>
<li>We also find it surprising to note that the company purchased Dealskart, a profitable company with EBITDA of INR 2.33 bn for an insignificant sum of INR 20 mn.   </li>
<li>Company was able to report in FY25 is mainly on account of “Other Income” by accounting for gains from lower deferred consideration to boost its Profitability.</li>
</ul>



Lenskart Solutions (0370405Z IN) much-awaited IPO, comprising a fresh issue of INR 21.5 bn and offer for sale of 127.5 mn shares, is set to open for subscription this week.
We also find it surprising to note that the company purchased Dealskart, a profitable company with EBITDA of INR 2.33 bn for an insignificant sum of INR 20 mn.   
Company was able to report in FY25 is mainly on account of “Other Income” by accounting for gains from lower deferred consideration to boost its Profitability.


Nitin Mangal is a Research Analyst with more than 15 years of experience in Indian equities. He is Pioneer of Corporate Governance and Accounting Research in Indian Market and has successfully developed product for Institutional Investors named as "Analysis Beyond Consensus" during his association with Edelweiss Securities Ltd, Mumbai. Later during the career, he has worked with Veritas Investment Research Corporation, Canada as Asia Consultant covering Indian and US equities. He has been profiled by leading financial newspapers such as Wall Street Journal, Business Standard etc