Aditya Shah Profile picture
Nov 22, 2023 17 tweets 5 min read Read on X
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👇 Image
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 Image
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 Image
How do IT services vary from ER&D services? Image
The company operates in 2 segments

1. Services Segment (ER&D)
2. Technology Segment

ER&D dominates the revenue Image
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 Image
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 Image
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. Image
Financials of the company.

The company has delivered solid growth with consistent margins Image
Competitors of the company

In India there are listed peers like LTTS, KPIT and Tata Elxsi Image
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. Image
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. Image
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
Keep following me -@AdityaD_Shah as I write daily to make you aware around:
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Go to my profile and hit the bell icon🔔to always stay updated
Disclaimer:-

This is my own study
Not an investment recommendation

Please consult your own financial advisor before making any investment decisions

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More from @AdityaD_Shah

Jun 30
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Hindu Undivided Family(HUF) is a good option that is available for all married persons

What is HUF? How to create it?

A thread🧵on HUF,how to create HUF and its benefits?

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What is Hindu Undivided Family(HUF)?

An HUF, under the Hindu law, is a family consisting of lineal descendants from a common ancestor. It includes their wives and unmarried children.
HUF’ is treated as a ‘person’ under section 2(31)​ of the Income-tax Act, 1961 (herein after referred to as ‘the Act’).

HUF is a separate entity for the purpose of assessment under the Act.
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Jun 23
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Health insurance policies come with 100s of variations & are very complicated🤯🤯

Which conditions should u keep in mind before buying a health insurance policy?🤔🤔

A thread🧵 on a comprehensive checklist of things you should check before buying a health insurance policy

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What is a health insurance policy?

In simple words, you pay a premium to an insurance company.
The insurance company in return will cover the cost of any unforeseen hospitalization

Almost everyone should have personal health insurance Image
Which health insurance policy to buy?

Health insurance policies come with 100s of variations such as:-

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May 30
🚨 Suzlon- Is the turnaround finally completed?

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It is order book of 5.6GW(highest in last 25 years)

Is the wind energy and Suzlon's business on a massive turnaround?🤔🤔

A thread🧵on the business of Suzlon and what lies ahead?

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The history of Suzlon:-

Suzlon undertook aggressive expansion within the wind energy space.

This led to a massive build-up of debt and after that huge problems for the company

Here is a brief history of the company Image
So what is changing for Suzlon?

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Policy makers decided to do away with reverse auctions.
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May 27
🥤🥤Water Treatment-The theme of the century?🥤

After a change in strategy,
VA Tech Wabag reported spectacular nos with
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But are these changes sustainable?🤔🤔

A thread🧵on the business of VA tech wabag & what lies ahead?

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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, Image
Most of this market is dominated by Municipalties across the world Image
Read 17 tweets
May 22
🚨Indusind Bank- Can it get any worse?🤔🤔

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?👇Image
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👇 Image
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 upImage
Read 15 tweets
Apr 28
🚨IDFC First Bank-Poor Capital allocator?

IDFC First Bank spent
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But to fund this
The bank raised nearly 10,000cr in the last 1 year😅😅😅

Now, as NPAs surge,
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A thread🧵on the business of IDFC First Bank & what lies ahead?👇Image
What has happened?

From the high of nearly Rs 90,
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The bank is seeing a surge in microlending NPAs,

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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
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Read 16 tweets

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