India IPO Forensics: TVS Supply Chain Solutions, SBFC Finance, Utkarsh Small Finance Bank
TVS SCS - an Indian supply chain firm with a 7% market share; although 70% of operations are international, struggling foreign branches raise sustainability doubts. Additionally, issues like asset impairment, debt-heavy balance sheet, costly acquisitions, asset sales and excessive promoter pay warrant attention.
SBFC - while FY23 saw a robust performance driven by business expansion, efficiency and managed credit expenses, notable concerns like legal disputes, employee turnover and write-offs require careful consideration.
Utkarsh - ranked fifth among India's SFBs, the company exhibited strong advances, deposits and enhanced efficiency recently. Yet, vigilance is advised regarding INR 6bn write-offs in the past two years that aided NPA reduction.
Edition: 167
- 18 August, 2023