Agencies₹3,600-cr IPO Offer Co is net cash positive and commands leadership in its field, but revenue growth has been in single digits in the last 2 years BusinessBajaj Auto, It is the largest supplier of Financials The company's revenue rose to ₹4,890.4 crore in FY25 from ₹4,827.4 crore in FY23. Value added revenue (excluding passthrough sales) rose annually by 6% to ₹4,380.1 crore and net profit jumped 20.5% to ₹553.1 crore between FY23 and FY25. Operating margin before depreciation and amortisation (Eb ...

Core Viewpoint - Aptiv PLC (NYSE:APTV) is gaining attention as a promising investment, particularly due to its upcoming spin-off of its software business and the potential for growth in the auto parts sector [1][2]. Group 1: Company Overview - Aptiv PLC is an auto components manufacturer with General Motors as a significant customer, accounting for 9% of its business [1]. - The company is in the process of spinning out its software business, which is expected to enhance its focus on growth and revenue acceleration [2]. Group 2: Growth Potential - The total addressable market for Aptiv's software segment is estimated to be around $90 billion, indicating substantial growth opportunities [2]. - The company is currently experiencing mid-single-digit growth, with expanding margins, suggesting a positive outlook for its financial performance [2]. Group 3: Upcoming Catalysts - An analyst day is scheduled for November, which is anticipated to provide more insights into the spin-off and its implications for the company's future [2].

Group 1: E-commerce and Market Growth - L'Oréal highlighted that e-commerce is transforming its reach in India, allowing the company to connect with previously underserved markets and accelerate growth [2] - Unilever noted that India is well positioned for medium-term growth, with rapid gains in e-commerce and quick commerce offsetting short-term GST impacts [2] - Reckitt Benckiser reported that its quick commerce business in India is more than doubling this year, with Flipkart growing at 30 percent [3] Group 2: Revenue and Performance Insights - Westinghouse Air Brake Technologies Corporation stated that year-to-date, its like-for-like net revenue growth in India remains at high single-digits, expecting the recent slowdown to be a matter of phasing [4] - TransUnion mentioned that India's growth was slightly below expectations due to tariff-related pressures but reaffirmed confidence in the market's long-term potential [5] - Visteon Corporation is deepening its presence in India with new digital products and expanded manufacturing plans [6] Group 3: Manufacturing and Export Developments - Westinghouse secured $140 million in brake orders driven by increased activity in India, marking a significant milestone for its Marhowrah plant [4] - BE Semiconductor Industries noted that India is emerging as a key location for new assembly capacities as customers diversify from China, with five major customers setting up assembly capacities in the country [8] - CIE Automotive emphasized that India remains one of its strongest and most stable markets, reinforcing its global importance [9] Group 4: Automotive Market Position - India has consolidated its position as the world's third-largest automotive market, surpassing Japan with nearly 25 million vehicles a year and continuing to grow across all segments [9]

Core Insights - Retail investors reduced their holdings in 62 midcap stocks during the September quarter of FY26, indicating a 'sell-on-rise' strategy amid market uncertainties [8] - The BSE Midcap index experienced a significant increase of 8% during the period ending September 30, 2025, and extended gains to nearly 13% as of October 21 [8] - Notable gainers included Delhivery with an 87% return, L&T Finance with a 75% surge, and One97 Communications (Paytm) with a 67% increase, despite declines in retail ownership [8] Retail Holdings and Performance - Delhivery topped the gainers' list with an impressive 87% return, while retail ownership decreased by 55 basis points [2][8] - L&T Finance saw a 75% increase in stock value, with retail shareholding falling by 37 basis points [2][8] - Other significant gainers included Indian Bank and Laurus Labs, both rising by approximately 50%, with retail ownership declines of 55 and 11 basis points, respectively [8] Underperformers - Sixteen stocks faced declines due to sustained underperformance, including KPIT Technologies, which dropped 12% and saw retail holdings decrease by 28 basis points [5][8] - Ipca Laboratories recorded a 14.64% drop in stock value, with a 27 basis point reduction in retail stake [5][8] - Other underperformers included Balkrishna Industries (down 9.30%), Blue Star (down 8.08%), and Emami (down 6.15%), with corresponding retail stake cuts [5][6][8] Investment Strategy - WhiteOak Capital MF recommends investing in midcaps through systematic investment plans (SIP) for long-term growth, highlighting a 10-year rolling SIP return average of 17.43% for the Mid Cap Index [7][8] - The note contrasts this with an XIRR of 15.62% for investors who switched based on the previous year's best-performing index [7][8]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the US equity market, particularly on thematic investing strategies and sector performance, with a strong emphasis on AI-related themes and renewable energy sectors [2][4][6]. Core Insights and Arguments - **Thematic Equity Strategy**: The REVS framework is utilized to assess various equity themes, indicating that stock prices are influenced by macroeconomic conditions, earnings, valuations, and sentiment [2][6]. - **Sector Rankings**: - Communication Services is the top-scoring sector in the US, followed by Utilities and Consumer Discretionary [4]. - Media & Entertainment, Auto Components, Software, and Metals & Mining are highlighted as positively scored industry groups [4]. - Industrials is noted as the lowest-ranked sector, although it still maintains a positive score [4]. - **AI-Related Themes**: - AI Software Pioneers are favored, with slight month-over-month improvement, while AI-Exposed Semiconductors have dropped in ranking due to a decline in new orders and sentiment [6]. - Top stocks in AI themes include Meta, MongoDB, Constellation Energy, and Microsoft, with a tactical recommendation to consider call switches in IGV vs. SMH for positioning [6][9]. - **Renewable Energy**: - EU Electrification and EU Renewables have risen in thematic rankings, with EU Renewables being the second highest scoring theme, reversing a multi-year downgrade cycle [6]. - Key stocks in this category include Solaria Energia y Medio Ambi, Acciona, and EDP [6][9]. - **Speculative Growth**: This theme has been added to the rankings and is currently scoring positively, although valuations are stretched [6]. - **EU Defense Spending**: Despite a valuation overhang, it remains positive in the thematic scorecard, with previous earnings revisions stalling [6]. - **Consumer Themes**: EU Consumer themes, including Luxury Goods and UK Homebuilders, are at the bottom of the scorecard, with stabilization in earnings revisions being crucial for improvement [6]. Additional Important Insights - **Performance Metrics**: The report includes detailed performance metrics for various themes, indicating the importance of regime, earnings, valuation, and sentiment scores in determining investment attractiveness [7][14]. - **Stock Rankings**: - The report highlights top and bottom scoring stocks within the highest and lowest ranking themes, providing a clear view of potential investment opportunities and risks [9][10]. - **Market Predictions**: The report includes machine learning model predictions for various themes, indicating expected performance trends over the next several months [12][13]. - **Analyst Disclosures**: The report includes a note on potential conflicts of interest due to UBS's business relationships with covered companies, emphasizing the need for investors to consider this report as one of many factors in their investment decisions [5]. This summary encapsulates the key points from the conference call, focusing on thematic strategies, sector performance, and specific stock recommendations within the context of the current market landscape.

Core Insights - Garrett Motion Inc. (NASDAQ:GTX) is recognized for its low P/E ratios among NASDAQ stocks, with Stifel initiating coverage with a Buy rating and a price target of $17.50 [1] - The company aims to achieve $1 billion in revenue from its Zero Emission portfolio by 2030, indicating significant growth potential in this sector [1] - Despite a shrinking addressable market, Garrett's legacy turbocharging division is expected to gain market share and generate substantial free cash flow to support expansion plans [2] Company Overview - Garrett Motion Inc. specializes in developing, producing, and distributing turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers [3]

Group 1 - Magna International, Inc. is a prominent auto component supplier based in Canada and is classified as a large-cap stock [1] - The company has experienced an underwhelming journey throughout the current year [1]

Group 1 - Magna International, Inc. is a prominent auto component supplier based in Canada and is classified as a large-cap stock [1] - The company has experienced an underwhelming journey throughout the current year [1]

Group 1: IPO Overview - The capital markets regulator SEBI has approved six initial public offerings (IPOs) that will collectively raise approximately ₹12,500 crore [1] - Canara Robeco Asset Management Company will conduct a complete offer for sale of 4.98 crore equity shares, with Canara Bank diluting 2.59 crore shares and ORIX Corporation Europe NV offering 2.39 crore shares [1] Group 2: Fund Profiles - Canara Robeco manages 25 schemes, including 12 equity schemes, 10 debt schemes, and three hybrid schemes, with a quarterly average AUM of ₹1,083.66 billion as of December-end [2] - Hero Motors plans to raise ₹1,200 crore through its IPO, consisting of fresh issuance of shares worth ₹800 crore and an offer-for-sale of shares worth up to ₹400 crore by promoters [2] - Manipal Payment and Identity Solutions has confidentially filed a Draft Red Herring Prospectus (DRHP) for an IPO that includes both an offer-for-sale and fresh share issuance [3] Group 3: Capital Use and Company Focus - A significant portion of the capital raised by Manipal Payment and Identity Solutions will be utilized to reduce debt at the promoter entity level [4] - Pine Labs aims to raise ₹2,600 crore through the issuance of new shares, while existing shareholders will sell 14.78 crore equity shares via offer-for-sale [5] - Orkla India will conduct an IPO comprising an offer for sale of 2.28 crore equity shares by promoters and other shareholders [6] - Emmvee Photovoltaic Power plans to raise ₹3,000 crore, with promoters selling shares worth ₹856 crore and the company issuing fresh shares worth ₹2,144 crore [6]

Supply Chain & Geopolitics - A diplomatic breakthrough with China is seen as the only short-term solution to alleviate the shortage of rare-earth magnets [1] - The shortage impacts a major auto components maker [1]