After nearly 20 years,🤯🤯
The Tatas are coming with an IPO!
The Tata Technologies IPO opens today.
Is the IPO worth the hype?🤔🤔
A thread🧵on the business of Tata Technologies and if one should apply to the IPO?
Lets go👇
What does Tata Technologies do?
Tata Technologies is a prominent global provider of engineering services, providing turnkey solutions, digital solutions, and product development to OEMs
It is a pure-play manufacturing focused Engineering Research & Development (“ER&D”) company
Engineering Research & Development (“ER&D)
ER&D services encompass design, development, testing, and maintenance activities for creating devices, platforms, or software ready for production and sale
It is a fast-growing industry
How do IT services vary from ER&D services?
The company operates in 2 segments
1. Services Segment (ER&D) 2. Technology Segment
ER&D dominates the revenue
Services Segment (ER&D):-
Tata Tech’s core competency is Full Vehicle Development, the company offers solutions for outsourced vehicle development from concept to reality helping Auto companies to launch competitive vehicles faster with optimized
cost
The company offers services to greenfield customers who are looking for EV development like
startups, and for brownfield customers like traditional OEM:
It offers services like cost optimisation, teardown benchmarking, Internal Combustion Engine (ICE) to Electric (EV) conversions
Technology Segment
Tata Tech resells 3rd party software for Product Lifecycle Management, CAD, Simulation, Virtual Collaboration,
Manufacturing Monitoring/Quality Inspection
Highly Diversified Revenue:-
The company's revenue data reflects a strategic balance in its global operations, with a well-distributed presence
across both emerging and developed markets
Strong Client base:-
The company has worked with clients across the global automotive landscape from North America to China. The client list includes names like Tata Motors, Jaguar-Land Rover, Polestar, Vinfast (Vietnam), Mclaren, Honda, Ford.
Financials of the company.
The company has delivered solid growth with consistent margins
Competitors of the company
In India there are listed peers like LTTS, KPIT and Tata Elxsi
Objects of the IPO:-
Tata Technologies is raising a total of Rs 3,042.51 crore via its initial stake sale, which entirely consists of an offer-for-sale (OFS).
The company is not raising funds via fresh issue and will not receive any proceeds from the IPO.
Valuation:-
Tata Technologies will trade at a P/E multiple of 30x
The growth prospects and the promoter quality is strong.
However, the stock is not cheap.
This entire space trades at an expensive multiple.
Conclusion:-
Tata Technologies is a world-class company backed by a strong promoter
It operates in the Er&D space which is a growing space.
However, the valuation is not cheap per se
Given the mass hype across the markets very little chance of allotment as well
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After a change in strategy,
VA Tech Wabag reported spectacular nos with
🥤Strong margins and
🥤strong cash flows
But are these changes sustainable?🤔🤔
A thread🧵on the business of VA tech wabag & what lies ahead?
Let's go👇
Water purification is a major theme not only in India but across the world
In India,
The
Ministry of Jal Shakti allocated nearly 99500 cr for this.
Other Southeast Asian countries are also investing in this,
Most of this market is dominated by Municipalties across the world
As if derivative accounting problems were not enough,
Indusind Bank reported shocking numbers with even more problems:-
🏦 NPAs hidden in microfinance
🏦Inflated fee income
🏦The board suspects fraud by some employees🤯🤯
A thread on 🧵on the results of Indusind Bank and what lies ahead?👇
What is happening at Indusind bank?
In March,
Indusind Bank reported an accounting error in the derivatives book.
This led to 2000 cr and exit of top management.
That was just the tip of the iceberg,
The stock price has tanked from there
Let's find out more👇
First of all.
Let's break down the current fiasco,
1. Accounting discrepancy in the derivatives book
From 2019,
Indusind Bank did not report losses in the derivatives portfolio,
This lead to massive loss of 1960cr this quarter,
Third party investigation confirms the loss and that this is all of the loss,
It is suspected many insiders were involved in this cover up
IDFC First Bank spent
🩺400cr on Indian cricket sponsorship
🩺180cr in dividends
But to fund this
The bank raised nearly 10,000cr in the last 1 year😅😅😅
Now, as NPAs surge,
The bank reported a very poor set of numbers
A thread🧵on the business of IDFC First Bank & what lies ahead?👇
What has happened?
From the high of nearly Rs 90,
IDFC First bank has now lost nearly 30%,
The bank is seeing a surge in microlending NPAs,
Lets find out what lies ahead for IDFC👇
Lets first analyse the Q4 results:-
Loan growth:-
🏦The Bank reported a loan growth of 20%.
🏦Predominantly a retail asset bank.
🏦Unsecured loans remained 60% of the book.
🏦Credit cards book has started to grow sharply
🏦Home loans are now growing well