Incap

Incap launched a substantial share buyback program in August. From a capital allocation perspective, we consider this move wise when taking into account the company's overall picture and other capital allocation alternatives.

We consider the share buyback program a sensible allocation of capital at the share's current valuation level, and we believe the program has good potential for value creation.

Incap's Q2 was operationally in line with the estimates that had been lowered after last week's profit warning. The report also did not indicate that the margin pressure mentioned in the company's profit warning would be a temporary factor, as its root cause is likely increased competition in India.

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Incap's Q2 revenue was practically in line with our expectations, and organic growth turned positive.