A brief update on select companies from the 5i Research coverage list. This report serves as the official rating update on the companies referenced herein. New ratings, if applicable, will be reflected in the Summary report at month-end.

TCS has demonstrated strong organic growth, and it has a healthy balance sheet and a strong backlog. Its recent results came in below expectations, but long-term demand looks healthy, and its updated guidance helped to support the stock price. It trades at a premium valuation to its peers, but we feel its strength lies in its niche healthcare vertical market, and if it can continue to grow its sales pipeline and expand its margins, that its premium valuation can be justified. We are maintaining our rating of ‘B+’.

RPI.UN serves a wide customer base that is comprised of over 17,000 enterprises in its three markets. Recent years have been challenging following a COVID-19 spike in demand. The first quarter of 2024 highlighted continued weakness in the food & beverage market, however, the healthcare market continued to see positive trends. While it may not be the most exciting growth name, RPI.UN generates solid cash flows, pays a high yield at 5.64%, has been reducing debt, and is cheap. We do not see it as a ‘must-own’ name, but it is a decent income investment. We are maintaining our rating of a B.