We initiate our coverage on Glenmark Pharmaceuticals (GNP IN) (“Glenmark”)’s GNPIN 4.5% 8/21s (BB-/BB by S&P and Fitch, respectively) with a Neutral recommendation (See Valuation) as we believe the recent rally limits a further upside in the near term. In addition, the transformation away from a drug company poses headline risk down the road. That said, we also believe the downgr...

We initiate our coverage on Tata Motors Ltd (TTMT IN) (“TM”) with a NEUTRALrecommendation on all TMIN complex on the following:

 (1) The lack of TMIN’s attractiveness versus its peers;

(2) Our negative outlook on TM’s credit metrics for the next 12 months on rising capex at Jaguar Land Rover Automotive PLC (JLR), TM’s 100%-owned subsidiary, which will lead to weakening cr...

Bharti Airtel Ltd (BHARTI IN) (Bharti) is in talks with Warburg Pincus to sell a 15% stake in Bharti Airtel International (Netherlands) BV (BAIN), a holding company of Bharti’s operations in 14 African countries, for USD1.5bn, according to Economics Times. The proposed transaction value the African business of up to USD10bn.

Management indicated the sale proceeds would be used to...

Vedanta Resources PLC (VED LN) (Vedanta) FY18 results, ended 31 March 2018, were within our expectation. EBITDA contribution from all key commodity businesses improved over the last 2 years. Notable EBITDA growth of 30%+ YoY were observed in zinc, oil and aluminum businesses, which accounted for 85% of FY18 EBITDA. We expect a rising EBITDA trend in 2018 and 2019 on favorable com...

Moody’s and S&P reaffirmed the issuer rating and senior unsecured debt ratings of Bharti Airtel Ltd (BHARTI IN) at Baa3/BBB- but revised the rating outlook to negative from stable on 26-April and on 3-May, respectively. 

 2

S&P’s key rationales for a negative outlook includes (1) FFO-to-debt multiple falling below 20% at 18.5% for FY18 (though S&P expects FFO-to-debt mult...

Vedanta Resources PLC (VED LN) (Vedanta) 9M FY18 results, ended last December, were within our expectation. Zinc and oil businesses contributed 77% of EBITDA driven by buoyant commodity prices. We expect the company’s EBITDA to continue improving in 2018 on favorable zinc and oil prices.

Read more at:https://www.smartkarma.com/insights/vedanta-resources-9-month-results-on-track

We initiate our coverage on Bharti Airtel Ltd (BHARTI IN) (Bharti) with an OVERWEIGHT recommendation on the BHARTI complex which reflects attractive yields (compared to its “BBB-“-rated peers), management’s commitment to cut down debt after its upcoming acquisitions, and the company’s long-term profitability prospect.

Read more at: https://www.smartkarma.c...

We initiate our coverage on Tata Steel Ltd (TATA IN) (“TSL”) with an UNDERWEIGHT recommendation on all of the TATAIN complex as we believe the complex is fully-valued against its domestic peers (See the Valuation section).  We also expect the company’s leverage to increase materially (see the debt section). Among India’s steel producers, we see a better value proposition in the J...

Moody’s upgraded the senior unsecured bond rating of JSW Steel Limited (JSW) to Ba2 from Ba3 on 6-March. The outlook remains stable. We believe Moody’s upgraded JSW’s senior unsecured bond rating prematurely given management’s plan to borrow an additional USD1.5bn and management’s indication to pursue aggressive acquisitions in the domestic and international markets.

Read more at:...

We initiate our coverage on JSW Steel Ltd (JSTL IN) (JSW) with a NEUTRAL recommendation on all JSTLIN complex as we believe the complex is fully-valued against its domestic peers (See Valuation). We see better value in the VEDLN complex ( Vedanta Resources PLC (VED LN) ) but also do not recommend selling the JSTLIN complex as we believe its long-term credit outlook is positive on...

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