Archives: Ipos

Billionbrains Garage Ventures Ltd. (Groww) is a direct-to-customer digital investment platform offering various financial products and services. It is India’s largest and fastest-growing investment platform by active users on the NSE, enabling customers to invest and trade in equities, derivatives, bonds, mutual funds, and other financial instruments. India’s Investment and Wealth Management sector presents a significant opportunity, with its total addressable market projected to expand to approximately Rs. 2.2 – Rs. 2.6 trillion by FY30, growing at a CAGR of 15-17%. This growth is being driven by rising investor participation, increasing disposable incomes, and higher investible funds. The rise of digital-first platforms is further democratizing access to capital markets, empowering retail investors to manage their portfolios with ease through simplified content, information and tools. Groww is well-positioned to benefit from these structural tailwinds. Among the top five brokers by NSE active customers as of June 30, 2025, Groww recorded the highest share of new app downloads, accounting for 38.2% of total downloads from the beginning of FY22 to June 30, 2025. The company’s focus on customer engagement is reflected in its efforts to provide relevant and easily accessible information, helping users make informed investment decisions. Its in-house technology capabilities, integrating artificial intelligence (AI) and machine learning (ML) across multiple business functions, enable superior customer experience while improving operational efficiencies. Financially, Groww has demonstrated strong growth, with revenue increasing at a CAGR of 84.9%, EBITDA at 143.9%, and PAT at 99.6% over the FY2023-25 period. Overall, the company is well-positioned for long-term sustainable growth backed by a strong business model, advanced technology, and customer retention capabilities, along with favorable industry tailwinds. On the valuation front, at the upper band of the issue price range, the company is valued at a P/E of 31.3x based on FY25 earnings. Considering its strong financial performance, technological edge, and growth prospects, we recommend a “SUBSCRIBE” rating from a medium- to long-term investment perspective.

Lenskart Solutions Ltd. is a technology-driven eyewear company with integrated operations spanning designing, manufacturing, branding, and retailing eyewear products. India is its largest market, and is the largest seller of prescription eyeglasses by volume in FY25. Leveraging its experience and capabilities in India, Lenskart has expanded into select international markets, including Japan, Southeast Asia, and the Middle East. It is India’s largest and, in Asia, amongst the two largest organized retailers of prescription eyeglasses in terms of B2C eyeglasses sales volumes during FY25. To provide a satisfactory customer experience, Lenskart has strategically chosen to centralize and control the entire prescription eyeglasses supply chain, comprising lens manufacturing, lens edging, lens design, frame design, frame manufacturing, and delivery. The company also aims to increase penetration in existing markets, enter new markets and geographies, and expand customer access through new initiatives. On the financial front, the company has demonstrated healthy topline growth of 32.5% CAGR between FY23 and FY25, driven by store expansion and digital penetration; however, profitability remains modest. Although the company’s in-house manufacturing transition and focus on innovation enhance long-term scalability, near-term profitability pressures from store expansion, international investments, and marketing costs remain a concern. Additionally, intense competition from both organized and emerging online players could constrain margin expansion. At the upper end of the price band, the issue is valued at a P/E of 227x based on FY25 earnings, which seems expensive relative to fundamentals, a low profitability base, and execution risks in scaling international operations, warranting a cautious stance despite strong growth prospects. We, thus, recommend a “Avoid” rating for this issue.

Orkla India Limited is a well-established, multi-category food manufacturer with a strong legacy spanning several decades. The company offers a diversified portfolio that caters to every meal occasion from breakfast and main meals to snacks, beverages, and desserts. It holds a leading position in the packaged spices segment across key southern markets, including Karnataka, Kerala, Andhra Pradesh, and Telangana. The Indian spices market has expanded at a robust CAGR of 11.5%, reaching approximately Rs. 1,230 billion in FY24, and is expected to grow further to Rs. 2,080 billion by FY29. This strong growth momentum is supported by multiple structural drivers such as rising disposable incomes, growing urbanization, increasing adoption of e-commerce and quick-commerce platforms, the need for convenience, and the rising awareness of spices’ medicinal and functional benefits. Similarly, India’s packaged food market is projected to grow at a CAGR of 11.0%, reaching Rs. 17,120 billion by FY29, driven by evolving consumer lifestyles, a higher share of nuclear families, growing female workforce participation, and increasing affordability. As part of its growth strategy, Orkla India has been expanding its international presence, with a key focus on strengthening its footprint across GCC countries. On the financial front, the company has demonstrated strong and consistent performance, with an EBIT margin of 14% in FY25, the highest among peers. The company delivered Sales/EBITDA/PBT CAGR of 5.0%/12.9%/22.9%, respectively, while adj. PAT declined from Rs. 338 crores in FY23 to Rs 289 crores in FY25 due to tax reversal in FY23. At the upper price band of Rs. 730, Orkla India Ltd. is valued at a P/E multiple of 39.0x based on FY25 earnings. Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.

Midwest Ltd is India’s largest producer and exporter of Black Galaxy Granite, commanding approximately 64% of the Indian export market in FY25 with exports of 44,992 cubic meters. The company is also a key player in Absolute Black Granite, accounting for 15.7% of India’s total black granite production. With advanced manufacturing facilities, Midwest continues to strengthen its leadership through strategic investments in wholly owned subsidiaries and the adoption of renewable energy solutions. India’s granite industry, valued at around USD 40 billion, presents significant potential for employment generation in rural areas and benefits from strong global demand as granite remains a premium decorative and construction material overseas. Midwest’s success is underpinned by its robust market share, focus on product quality, and long-standing customer relationships, which reinforce its reputation as a trusted global supplier of premium natural stone. The company’s strategic roadmap focuses on capacity expansion, diversification into engineered stone and quartz products, and investments in green technologies to enhance sustainability and operational efficiency. The company also aims to improve logistics, optimize its supply chain, and reduce its environmental footprint, increasing operational efficiency and positioning itself for regulatory trends. The company’s established market positions and growing global demand for natural and engineered stone products suggest resilient profits. On the financial front, the company has delivered healthy CAGR growth over FY23–25, with Revenue/EBITDA/PAT CAGR of 11.6%/38.5%/ 56.5%. The future outlook appears strong, with Midwest poised to leverage industry growth, premium product positioning, and planned expansion projects. At the upper price band, the company is valued at a P/E multiple of 27.0x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

CRAMC is one of India’s oldest and most established asset management companies, with a diversified portfolio spanning equity, hybrid, and debt schemes. The company’s research-driven investment process, combining top-down and bottom-up fundamental analysis, has enabled its equity-oriented schemes to consistently outperform benchmarks over long-term horizons, delivering superior risk-adjusted returns. The company plans to continue delivering strong medium to long-term investment performance through its disciplined, research-backed process. Growth initiatives include expanding geographical reach, increasing AUM contributions from debt-oriented schemes, launching new equity and multi-asset products, and leveraging Canara Bank’s branch network to capture opportunities in B-30 cities. CRAMC also aims to enhance its digital platforms, offering seamless onboarding, transaction capabilities, and distributor support, alongside new CRM, cash management, and vendor management solutions to improve operational efficiency. Financially, CRAMC has delivered strong performance over FY2023-25 period, with revenue, EBITDA, and PAT growing at a CAGR of 40.5%, 52.9%, and 55.4%, respectively, while maintaining healthy margins and a robust RoE of 31.8% in FY25. With a conservative investment approach, strong retail penetration, technology-enabled distribution, and clearly defined strategic initiatives, CRAMC is well-positioned to benefit from the projected 16-18% CAGR growth in India’s mutual fund industry over FY2025-30 period. At the upper band of the issue price range, the company trades at a P/E of 27.8x based on FY25 earnings. Given its strong fundamentals, long legacy, and execution-focused strategies, we recommend a “SUBSCRIBE” rating from a medium- to long-term perspective.

Canara HSBC Life Insurance aims to increase life insurance penetration by maximizing synergies with its bancassurance partners, focusing on seamless customer onboarding and tailored product offerings. The Indian life insurance industry is projected to register a premium CAGR of 8–10% between FY24 and FY28, with bank-led insurers expected to outperform, growing at 10–12% CAGR during the same period. This growth outlook is supported by strong macroeconomic fundamentals such as robust GDP expansion, a young and productive demographic base (64% of the population aged 15–59 in CY23), and rapid urbanization. A key element of this strategy involves leveraging Canara Bank’s extensive distribution network, provides access to 117 million customers through 9,849 branches across India, thereby enabling deeper market penetration and scalable growth within the existing partnership ecosystem. On the financial front, the company has demonstrated steady value creation, as reflected in the consistent growth of its Embedded Value (EV) rising from Rs. 42,719.3 million in FY23 to Rs. 51,798.6 million in FY24, and further to Rs. 61,107.4 million in FY25, with an additional uptick to Rs. 63,526.4 million as of June 30, 2025. This sustained increase underscores the company’s strong operational performance, profitable business growth, and disciplined capital management, reinforcing its long-term shareholder value creation potential. Additionally, with 10.5 million lives covered, the company demonstrates a broad customer base and deep market reach, underscoring the trust and confidence policyholders place in its life insurance offerings. At the upper price band of Rs 106, the company is currently valued at a P/EV (Price to Embedded Value) multiple of 1.6x (FY25), which appears attractive in comparison to industry peers, indicating potential undervaluation as growth and profitability sustain. We, thus, recommend a “SUBSCRIBE” rating for this issue.