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July 29, 2024

It's now official.
The end of the N Srinivasan era in Chennai's India cements.
Aditya Birla Group owned Ultratech will be buying the promoter group of India Cements. UltraTech will pay Rs. 3,954 crores at Rs. 390/ share for buying 32.72% stake in India Cements from the promoters & their associates. This will trigger a mandatory open offer, at Rs 390/ share.
Cement Cartel of the south broken. It is now Adani vs Birlas in Cement industry.
India Daybook – Stocks in News
Themis Medicare: Net profit at Rs 20.3 cr vs Rs 6.8 cr, Revenue at Rs 106 cr vs Rs 69 cr (YoY) (Positive)
Genus Power: Net profit at Rs 42.4 cr vs Rs 19.3 cr, Revenue at Rs 414 cr vs Rs 261 cr (YoY) (Positive)
KEC INT: Net profit at Rs 87.6 cr vs Rs 42.3 cr, Revenue at Rs 4512 cr vs Rs 4244 cr (YoY) (Positive)
PSB: Net profit at Rs 182 cr vs Rs 153 cr, NII at Rs 850 cr vs Rs 738 cr (YoY) (Positive)
Shaily Engineering: Net profit at Rs 17.4 cr vs Rs 12.6 cr, Revenue at Rs 179 cr vs Rs 157 cr (YoY) (Positive)
SBFC: Net profit at Rs 78.7 cr vs Rs 47.0 cr, Revenue at Rs 297 cr vs Rs 230 cr (YoY) (Positive)
JP Associate: Net profit at Rs 349 cr vs Rs 192.0 cr, Revenue at Rs 1755 cr vs Rs 1710 cr (YoY) (Positive)
KFin Tech: Net profit at Rs 68.07 cr vs Rs 43.40 cr, Revenue at Rs 238 cr vs Rs 182 cr (YoY) (Positive)
Alankit: Net profit at Rs 7.4 cr vs Rs 4.7 cr, Revenue at Rs 61.9 cr vs Rs 48.6 cr (YoY) (Positive)
Dr Reddy: Net profit at Rs 1,392 crore versus poll Rs 1,335 crore, Revenues at Rs 7,673 crore versus poll Rs 7,183 crore (Positive)
NTPC: Net profit at Rs 4511 crore versus poll Rs 4468 crore, Revenues at Rs 12466 crore versus poll Rs 11922 crore (Positive)
J&K Bank: Net Profit at ₹415.5 Cr Vs ₹326.5 Cr, NII at ₹1,369.2 Cr Vs ₹1,283.3 Cr (YoY) (Positive)
PNB: Net Profit at ₹3251 Cr Vs ₹1260 Cr, NII at ₹10476 Cr Vs ₹10363 Cr (YoY) (Positive)
Sumitomo Chemicals: Net profit at Rs 126.7 cr vs Rs 61.7 cr, Revenue at Rs 839 cr vs Rs 724 cr (YoY) (Positive)
Captain Pipes: Net profit at Rs 2.11 cr vs Rs 1.35 cr, Revenue at Rs 20.8 cr vs Rs 19.1 cr (YoY) (Positive)
Asahi Songwon: Net profit at Rs 4.4 cr vs loss Rs 5.9 cr, Revenue at Rs 134 cr vs Rs 103 cr (YoY) (Positive)
Anant Raj: Net Profit Up 79.5% at ₹91 Cr Vs ₹50.7 Cr, Revenue Up 49.2% at ₹471.8 Cr Vs ₹316.2 Cr (YoY) (Positive)
MCX: Net Profit Up 26.2% At ₹110.9 Cr Vs ₹87.9 Cr, Revenue Up 29.4% At ₹234.4 Cr Vs ₹181.1 Cr (QoQ) (Positive)
Karnataka Bank: Bank partners with ICICI Lombard General Insurance to enhance customer benefits. (Positive)
BHEL: Company gets Rs 10,000 cr order for 1600MW Damodar Valley Corp project (Positive)
BEML: Company is targeting 20% revenue growth and a ₹25,000 crore order book by the end of FY25 (Positive)
DLF: Company's sales bookings surged over threefold to Rs 6,404 crore in first quarter of FY25. (Positive)
Cera Sanitaryware: Board Meeting On Aug 5 to Consider the Proposal of Buyback of Fully Paid-up Equity Shares (Positive)
Filatex Fashion: Company wins Export Order for White Marble for USD $35m (2.9b Rupees). (Positive)
Savita Oil Tech: Board Meeting On Aug 3 to Consider the Proposal of Buyback of Fully Paid-up Equity Shares. (Positive)
Phoenix Mills: Board Meeting On July 31 to Consider the Proposal of bonus shares. (Positive)
Pearl Global: Company says factories in Bangladesh have resumed normal operations (Positive)
Jayant Agro: Company says Gujarat Pollution Control Board revoked order to close Gujarat plant. (Positive)
Godawari Power: Company gets 'Permission to Establish' from Chhattisgarh Environment Conservation Board for setting up 2 MT Pellet plant (Positive)
DCW: WINRO Commercial India bought 29.1 lakh shares of company (Positive)
Cigniti: ICICI Pru Mutual fund bought 2.3 lakh shares of company (Positive)
Devyani International: Company enters into shareholders’ agreement with PVR INOX including proposed incorporation of a company. (Positive)
India Cements: UltraTech Cement board approves acquisition of India Cements, co to acquire total 32.72% stake at Rs 390/sh for Rs 3,954 crore (Positive)
SAT Industries: Company announces acquisition of 90% stake in MR Organisation for Rs 115 Cr (Positive)
City Union Bank: Gross NPA at 3.88% vs 3.99% (QoQ), Net NPA at 1.87% vs 1.97% (QoQ) (Positive)
City Union Bank: City Union Bank: Net profit at Rs 264 cr vs Rs 227 cr, NII at Rs 545 cr vs Rs 523 cr (YoY). Bank approves raising Rs 500 cr through QIP (Neutral)
Bandhan Bank: Net profit at Rs 1063 cr vs Rs 721 cr, NII at Rs 3005 cr vs Rs 2490 cr (YoY) (Neutral)
Intellect: Net Profit at ₹74.7 Cr Vs ₹73.4 cr, Revenue at ₹606.3 Cr Vs ₹613.7 Cr (QoQ) (Neutral)
Power Grid: Net profit at Rs 3412 cr vs EST of Rs 3856 cr, Revenue at Rs 10068 cr vs EST of Rs 11278 cr (Neutral)
Kaynes Tech: Net profit at Rs 50.8 cr vs EST of Rs 48 cr, Revenue at Rs 504 cr vs EST of Rs 465 cr (Neutral)
Mallcom: Net profit at Rs 8.5 cr vs Rs 8.6 cr, Revenue at Rs 99.2 cr vs Rs 90.88 cr (YoY) (Neutral)
Associated Alcohol: Net profit at Rs 17.7 cr vs Rs 12.3 cr, EBITDA at Rs 28.1 cr vs Rs 18.5 cr (YoY) (Neutral)
Meghmani Org: Net loss at Rs 16.8 cr vs Rs 34.5 cr, Revenue at Rs 414 cr vs Rs 426 cr (YoY) (Neutral)
SBC Exports: Net profit at Rs 5.2 cr vs Rs 4.6 cr, Revenue at Rs 57.0 cr vs Rs 50.0 cr (YoY) (Neutral)
Laxmi Organics: Net profit at Rs 34.4 cr vs Rs 38.8 cr, Revenue at Rs 720 cr vs Rs 730 cr (YoY) (Neutral)
TCI Express: Net profit at Rs 91.0 cr vs Rs 82.0 cr, Revenue at Rs 1045 cr vs Rs 950 cr (YoY) (Neutral)
Shree Digvijay Cement: Net profit at Rs 11.3 cr vs Rs 17.2 cr, Revenue at Rs 606.3 cr vs Rs 613.7 cr (YoY) (Neutral)
Aarti Drugs: Net profit at Rs 33.2 cr vs Rs 47.8 cr, Revenue at Rs 560 cr vs Rs 661 cr (YoY) (Neutral)
GMDC: Net profit at Rs 184 cr vs Rs 219 cr, Revenue at Rs 818 cr vs Rs 766 cr (QoQ) (Neutral)
Latent View: Net profit at Rs 39 cr vs Rs 45 cr, Revenue at Rs 179 cr vs Rs 172 cr (QoQ) (Neutral)
IndiGo: Net profit at Rs 2729 cr vs Rs 3091 cr, Revenue at Rs 19,571 cr vs Rs 16,683 cr (YoY) (Neutral)
Quick Heal: Net profit at Rs 4.0 cr vs Rs 14.0 cr, Revenue at Rs 70 cr vs Rs 51 cr (QoQ) (Positive)
IndusInd Bank: Net profit at Rs 2171 cr vs Rs 2123 cr, NII at Rs 5408 cr vs Rs 4867 cr (YoY) (Neutral)
ICICI Bank: Net profit at Rs 11,059 crore versus poll Rs 10,564 crore, NII at Rs 19,553 crore versus poll Rs 19,571 crore (Neutral)
IDFC First Bank: Net profit at Rs 680 crore versus poll Rs 741 crore, Interest Earned at Rs 8789 crore versus poll Rs 6868 crore (Neutral)
Sanofi India: Net profit at Rs 103.2 cr vs Rs 122.9 cr, Revenue at Rs 464 cr vs Rs 515 cr (YoY) (Neutral)
Accelya Solutions: Net profit at Rs 31.2 cr vs Rs 32.1 cr, Revenue at Rs 177 cr vs Rs 192 cr (YoY) (Neutral)
SBI Cards: Net profit at ₹594.5 cr vs ₹593.3 cr, Revenue at ₹4,358.6 cr vs ₹3,911.9 cr (YoY) (Neutral)
Maruti Suzuki: Company gets ₹779 cr income tax demand for FY2019-20 (Neutral)
Godrej Properties: Company board approved allotment of 93,540 unsecured redeemable NCDs. (Neutral)
Cipla: Samina Hamied resigns as non-executive director of company (Neutral)
SPARC: Company re-designates Nitin Dharmadhikari as COO (Neutral)
Cholamandalam Investment: Company appoints Ravindra Kumar Kundu as Managing Director with effect from October 7. (Neutral)
Manappuram: RBI fines Company and Consultants Rs 20 cr over a potential fraud by an employee of the Company (Neutral)
ITC: Hotels demerger on track, expected to be completed in the next few months. (Neutral)
Coal India: Company sets August 16 as record date for final dividend of Rs5/Sh (Neutral)
Route Mobile: Company's promoter offloads 12.24 lakh shares at Rs 1,656.6 apiece. (Neutral)
ESAF Fin Bank: Net profit at Rs 63 cr vs Rs 130 cr, NII at Rs 588 cr vs Rs 585 cr (YoY) (Negative)
SBI Card: Gross NPA at 3.06% vs 2.76% (QoQ), Net NPA at 1.11% vs 0.99% (QoQ) (Negative)
Spandana: Net profit at Rs 55.7 cr vs Rs 119.5 cr, Revenue at Rs 693.5 cr vs Rs 492.9 cr (YoY) (Negative)
Glenmark Life: Gujarat Pollution Control Board issues closure notice for company’s Ankleshwar Facility (Negative)
Hindustan Zinc: Company received tax order for demand of Rs 1884 crore. (Negative)
Indoco Remedies: U.S. FDA inspection at Goa facility ends with 7 observations (Negative)
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CLSA on ICICI Bank
Outperform Call, Target Raised To Rs 1,500
Delivered Balanced Q1, Loan Growth & Deposit Growth Were In Mid-Teens
NIM Moderated A Few Bps Sequentially
PPoP Grew A Tad Faster Than NII Due To Some Ops Leverage
Gross NPL Ratio Was Stable & Credit Costs Were Benign At 45 bps
Among Large Banks, ICICI Has Highest Standard Asset Provisioning
Only Fee Income Was A Bit Tepid, Growing 13% YoY
Bernstein on ICICI Bk
Market Perform, Target Rs 1,250
Reported A Solid Set With A Steady Sequential RoA At 2.36%
Strong Treasury Gains Offsetting A Marginal Drop In NIM
Normalisation Of Credit Costs From Ultra-Low Levels Seen In Last Qtr
Loan Growth & Deposit Growth Were Both Healthy
Loan & Deposit Growth Driving A Healthy +14% YoY EPS Growth
JPMorgan on ICICI Bk
Outperform Call, Target Raised To Rs 1,375
Q1 PAT Was In-Line With Est, NII Was In-Line As Well
NIM Decline Along Expected Lines
Core PPoP Was Up 11% YoY With Overall Avg.
Asset Growth At 16% YoY With NIMs Having Moderated 42 bps YoY
Opex Growth At 11% YoY Has Been Lagging Overall Asset Growth
Opex Growth Could Offset NIM Pressures To Support Operating Margins
Bank Saw Seasonally Higher Slippages In Q1 On Account Of Its KCC Portfolio
Credit Costs Were However Benign With13 bps Aid From AIF Provision Reversal
CITI on ICICI Bank
Buy, TP Raised to Rs 1464
Sustained >2.3% RoA/17% RoE
NIM decline restricted at 4bps & credit cost/slippages were contained at 0.44%/2%
Besides seasonal agri, no stress visible in other segments
Mgtm. expects 10-15% impact of LCR draft circular
Citi on IndusInd BK
Buy Call, Target Rs 2,010
Contrary To Concern About Asset-Quality, Slippage & Credit Cost Better Than Est
Colln & Caution Was Prioritised Over Growth
Loan Growth Moderated To 15% YoY
Mgmt Intends To Scale Loan Growth To >18% By FY25
NIMs Was Sustained QoQ vs Est of a decline
NIM Supported By Borrowing Refinancing & Investment Yield
LCR Improved To 122% & It Indicated An Impact Of 4-6% Of Draft Circular
CLSA on IndusInd Bk
Outperform Call, Target Cut To Rs 1,800
Contrary To Concerns Of A Miss On Asset Quality Metrics Due To Macro Environ
Bank Reported Credit Costs Of 1.2%, In-Line With Its Guidance
More So, This Was Without Utilising Contingency Provision Buffers
Gross/Net Slippage Ratio Of 1.8%/1.2% Was Similar To The Trend In Prior Quarters.
On Operating Front, Loan Growth Moderated From 18% Last Year To 15%
Loan Growth Moderated Due To Slowing Auto Demand & Elections Impact
Moreover, As A Risk-Prudent Measure, IIB Shrunk Its MFI Book
Bernstein on IndusInd BK
Outperform Call, Target Rs 1,800
RoA Witnessing A 20 bps Sequential Decline On Back Of A Muted NII Growth
Loan Growth Was Weak Sequentially, Esp In Microfinance Segment
There Was Also A Clear Deterioration In Asset Quality,
Leading To Lower RoA & EPS Growth (+2% YoY)
Mgmt Maintained Its Target Of 18%-23% Loan Growth
Mgmt Maintained Its Target 17%-18% Deposit Growth During Yr
Mgmt Expressed Confidence Of Maintaining Full Year NIM
NIM Seem In A Narrow Range Of 4.2%-4.3%
HSBC on IndusInd BK
Buy, TP Rs 1770
1QFY25: IIB reported a slight revenue miss led by lower fees; NIM was stable, +20bp q-o-q net slippages in retail loans
Cut EPS by 0.8-2.4% for FY25-27e due to NIM pressure & lower fees
IIB set to deliver 14% EPS CAGR in FY25-27e
CLSA on Bandhan Bank
Outperform Call, Target Rs 240
Went Into Results With Muted Expectations On Asset Quality
Were Positively Surprised By Q1– Net Slippages Declined 50% YoY
Credit Costs Came In At 1.7% Vs 2.4% YoY
Q1 Is Generally Slow On Balance Sheet Growth & This Qtr Was No Exception
Mgmt Still Maintains Its 18-20% Loan Growth Tgt For The Year
See Loan Growth Largely Coming In The Second Half
NIM Was Stable & Opex Was In-Line
Raise PAT Est By 5-7% Driven Largely By 20 bps Lower Credit Costs
JPMorgan on Bandhan Bank
Overweight Call, Target Rs 260
Q1 PAT Was Well Ahead Of Est, Driven By Higher NII & Lower Provisions
Non-II growth Was Aided By Release Of Provisions On SR Redemption
Non-II Growth Was Aided By Recovery From Written-Off Accounts
Asset Quality Performance Was Better Than Est In A Seasonally Weaker Q1
Overall, Gross Slippages Fell Below 3% After 14 Quarters
Net Flow Into 0+ MFI Book Was Contained At 3.4%
Kotak Inst. on Bandhan Bank
Buy Call, Target Rs 250
Healthy Earnings Growth, Led By Ops Profit Growth & Decline In Provisions
Slippages Stood At 2.9%, While Credit Costs Were At 1.7%
Early Warning Signals Have Increased But Are Lower Than Peers
Has Revised Its RWA On MFI Portfolio, Classifying It On Par With W/Unsecured Loans
Find Risk-Reward Favorable
MS on PNB
Underweight Call, Target Raised To Rs 80
NII BRoAdly In-line With Est & Led By Avg B/S Growth
Margins Moderated By 3 bps QoQ To 3.07%.
Asset Quality Trend Was Better Than Expected With Lower Slippage, Credit Cost
Mgmt Lowered FY25 Credit Cost Guidance To 50 bps Vs 100 bps Earlier
Recovery From W/Off Accounts Declined QoQ
Adjusted For Which, Net Credit Cost Was Just 2 bps Vs Negligible Last Qtr
SMA 1&2 Appears Elevated At 2.5% & Is Key To Watch
CITI On PNB
Sell, TP raised to Rs 105
Contained credit cost at 55bps aided PNB register RoA of 0.84%, beating CitiE
Further restricted NIM decline of 3bps, PSLC income and treasury gains (of Rs6.5bn) supported earnings.
Broad-based improvement in slippages& higher write-offs led to GNPA decline to 4.98%, giving mgmt confidence to revise guidance to 4% forFY25
Also it halved credit cost guidance to 50bps
BK now guides for ROA of 1% by 4QFY25 with credit growth of 11-12%
Jefferies on IDFC First Bk
Buy Call, Target Cut To Rs 95
Q1 Profit Missed Estimates Due To Higher Credit Losses In MFI Segment
Drag May Sustain In Q2-Q4 As Well
New Disclosure On Vintage Delinquency Of Other Retail Loans Is Encouraging
Deposit Growth Of 36% To Aid Loan Growth & Improvement In LDR (97% Now)
Op Efficiencies Are Evident And Will Aid Profits Over H2FY25-27
Lower Est For MFI Losses, But See RoA Rising To 1.4% In FY27
Citi on Shriram Fin
Buy Call, Target Rs 3,380
Defying Seasonality & Peer Trend, Co’s Asset Quality Was Rock Solid
GS3 Improvement Across Products With Lower Write-Offs Led To Contained Credit Cost Aum Growth Sustained, Amidst Risk Of Heatwave & Election Disruption
Traction Led By MSME & PV
Mgmt Retains 15% Growth Guidance
Mgmt Indicated Q2 And H2 Should Be Relatively Better
Build In AUM Growth Of 15-18%, Credit Cost Of 2.1% Over FY25-27
NIMs Of 9.0-9.2% Over FY25-27e
JPMorgan on Shriram Fin
Overweight Call, Target Raised To Rs 3,200
Q1 Strong Growth & Asset Quality Performance
AUM Growth Of 21% YoY Ahead Of Target
FY25 Growth Guidance Of 15% Looks Conservative
Asset Quality Performance Was Notably Robust In A Seasonally Weaker Q1
Credit Costs Improving Sequentially
Gross Stage 2+3 Assets Down 17 bps QoQ
Improvement Seen Across Most Segments
Nomura on Shriram Fin
Buy Call, Target Rs 3,500
Remains Top Sector Pick
Asset Quality Further Improves With Credit Costs Improving To 2.1%
Mgmt Continues To Guide For 15% YoY AUM Growth In FY25
However, It Expects To Deliver Better Than Its Guidance Especially In H2FY25
CLSA on Shriram Fin
Outperform Call, Target Raised To Rs 3,350
Credit Cost For Q1 Was Key Positive Surprise While NII Was Largely In-Line
AUM Growth Of 21% Was Marginally Higher Than Expected
Management Indicated That Momentum Picked Up In May & June
While Cards & MSME Were Fastest Growing Segments,
CV Segment Delivered Mid-Teen Growth
Gold/Personal Loans Saw A Slowdown
Driven By Improvement In MSME & Personal Loan Segments
Gross Stage 2+3 Ratio Declined 20 Bps To 12%
Ms on Shriram Fin
Overweight Call, Target Raised To Rs 3,660
Favourable Cyclical Conditions & Structural Changes Continue To Drive Outcomes
Valuation Has Re-Rated Materially, Albeit From Depressed Levels
Believe SHMF Offers Scope For Further Re-Rating
Lift Valuation After Encouraging Q1 & See Good Upside
Jefferies on Shriram Fin
Buy Call, Target Raised To Rs 3,475
Pat Was In-Line With Est, AUM Grew 21% YoY
NIMs Dipped Slightly As Expected
Gross NPA Fell QoQ Despite Adverse Seasonality
Used CV/ PV Demand Is Steady
Enough Headroom For Expanding Distribution Of SCUF Pdts Like Gold, MSME
Expanding Distribution Of SCUF Pdts Should Support 17% AUM CAGR
See 17% EPS CAGR, 16% Adj RoE Over FY24-27
Bernstein on SBI Cards
Underperform Call, Target Rs 600
Further Deterioration In Asset Quality As Credit Cost Inched Above 8%,
Card Additions Saw A Considerable Slowdown (-12% QoQ/ -18% YoY)
Spends Growth Remained Weak, Thanks To A Sharp Decline In Corporate Spends
While Share Of Interest Earnings Receivables & Nim Remained Stable
Sharp Rise In Credit Costs Drove The RoA Down To 4.1% (-61 Bps QoQ)
Roe Dropped Below 20% & Eps Growth Was Flat YoY
Metrics Don’t Justify The Stock’s 5.4x PBX Valuation
Nomura on SBI Cards
Reduce Call, Target Rs 625
Q1 Pat 7% Lower Than Consensus Leading To RoA/ Roe Contraction
Asset Quality Deteriorated Further With Credit Cost /Gross NPA At 10/11 Qtrs High
Net Card Addition Was Also At A 12-Qtr Low
Further Moderation In Spend/Loan Growth To 4%/22% YoY In Q1
Tried To Control Asset Quality Issues By Going Slow On Growth
Jefferies on SBI Cards
Hold Call, Target Cut To Rs 735
Q1 Pat Was 5% Below Our Est. Due To Higher Credit Cost
Receivables Growth Was Healthy At 22%.
NIM Was Stable QoQ & Should Stay Range-Bound
Opex Was Lower Than Est. Due To Lower Corporate Spend.
Credit Cost Jumped 92bps QoQ Despite Corrective Actions,
Visibility Around Credit Cost Normalisation Is Poor
Cut Fy25-26e Eps By 6-7%
CLSA on SBI Cards
Hold Call, Target Cut To Rs 750
While PPoP Beat Estimate By 5%, High Credit Costs Led To A 6% PAT Miss
Credit Costs Jumped On A High Base Of 7.6% Last Quarter Driven By Higher Slippage
While A High Credit Cost Was Expected Given Environment
Management’s Cautious Stance, Such A High Number Will Certainly Disappoint
Co Maintained That Credit Costs Would Be 7-8% For Year
Nomura on Chola Fin
Reduce Call, Target Rs 1,150
Q1 Mixed Bag; Strong Growth But Worsened Asset Quality
Profitability Moderation Driven By Elevated Credit Costs
Healthy AUM & Disbursement Growth; NIM Contracts
Rich Valns Leave No Margin Of Safety
Jefferies on Chola Fin
Buy Call, Target Rs 1,525
Q1 CIFC's PAT 3% Beat Vs Our Est
Stronger NII, Lower Opex Offset Higher Provision.
AUM Grew 35% YoY As Expected, Auto Disbursement Growth Improved
NIM Rose 10 Bps QoQ Due To Higher Yield, Lower CoF
Credit Cost Was Up 19 Bps YYy At 1.5% Vs Est Of 1.35%
CLSA on Ashok Leyland
Outperform Call, Target Rs 258
EBITDA Margin Increased Led By A Higher Gross Margin
Higher Gm Due To Operating Leverage As Vols Increased By 6.2%
However, This Was Offset By An Increase In Other Expenses
A One-Time Expense For Setting Up A Centre Of Excellence For Electric Vehicles.
Mgmt Is Optimistic About (CV) Growth Outlook Driven By Infra Spending
Mgmt Is Optimistic About Strong Freight Demand & Strong Replacement Demand
Gross Margin Expands By 156 bps YoY In Q1
Citi on Ashok Leyland
Buy Call, Target Raised To Rs 285 From 245
Q1 In-Line With Est, Sharp QoQ Decline In Margin Was On Expected Lines
Significant Decline In Volumes Due To Seasonality & Elections
Mgmt Noted That Prevailing Industry Demand Momentum Is Better Than Envisaged
Fy25 Industry Volumes Could Be Flat YoY In Worst-Case Scenario
Co Is Likely To Perform Better, Given A Strong Product Launch Pipeline
Co Positive On Resumption Of Industrial & Infra Growth In India
Expect New Orders In Bus Segment
GS on Ashok Leyland
Buy Call, Target Raised To Rs 290
Mgmt Indicated That On-Ground Demand Momentum Is Intact
Demand Driven By A Better Start To Monsoon Season In FY25 Vs FY24
Stable Infrastructure Spending & Potential Pick Up In Replacement Demand
Plans To Launch 4 More Product Launches In 2hcy24
10.6% EBITDA Margin Includes A Significant Spend On R&D
R&D Spends Towards Building A Center Of Excellence Working On Battery Design
R&D Spends Towards EV Design And Software Defined Vehicles
MS on Mphasis
Equal-Weight Call, Target Raised To Rs 2,900
Mgmt Commentary Continues To Be Constructive
BFS Vertical Has Been Witnessing Improving Trends
However, Execution Has Scope To Improve
Post The Run-Up Since End Of May, Valuations Are Not Cheap
Citi on Mphasis
Sell Call, Target Rs 2,235
Reported In-Line Q1, Revenues Were Largely Inline
Margins Were Slightly Lower
TTM Down 42% YoY In Q1
There Are Deals Won In FY24 To Be Converted To Revenues
Headcount Declined ~7% YoY In Q1
Mgmt Says, Discretionary Spends Trends Hasn’t Changed Vs Q4
Though There Are Some Green Shoots & Early Signs Of Recovery In Mortgage
GS on IndiGo
Buy Call, Target Rs 4,800
Q1 EPS Of Rs 71 Was Above Est
Beat Driven Largely By Higher One-off Compensation Booking
Beat Partially Offset By Higher Costs
Yields And ASK/RPK Were Largely In-Line With Est
Passenger Fleet Size Increased To 379 Planes, With 8 From New Deliveries
Aircraft Groundings Were Stable At Mid-70s
Co Expects Groundings To Start Coming Down By End Of FY25
For Q2, Co Expects High-single Digit YoY ASK Growth
GS on Dr Reddy’s
Neutral Call, TP Raised To Rs 6,625
Q1 Rev/EBITDA Above Est, Driven By Robust Performance In Core Markets
Margin Beat Primarily Driven By Better GMs
EBITDA Margin Partially Offset By Higher SG&A Spends
Raise FY25-27E EPS By 2%-12% To Factor In Q1 Beat
Higher Growth For India/US Business & Updated Biz Outlook
Bernstein on IEX
Underperform Call, Target Rs 110
Had A Strong Qtr & Run-Rate For July Seems To Indicate An >25% Vol Growth
With Abundant Domestic Coal Availability
Un-Requisitioned Power & Renewable Plants Trying To Leverage Infirm Power Think Near-Term Tailwinds Are Supportive For Vols
On Regulatory Front Though, Next 3-6 Months Could Carry Some Uncertainty
Results Of Shadow Coupling Expected From Regulator
DAM Capital on CMS Info System
Buy Call, Target Rs 650
CMS Info Systems (CMSINFO) remains pleasantly predictable as it steadily moves towards its FY25E revenue goal (well within reach) and given its costeffective service platform for the broader BFSI industry, and its leadership stature, the company should continue to steadily grow over the medium-term as well. Since our reiteration note in March, the steady re-rating in the name (11x 1Y PE on listing; 19x today) suggests that the market too is easing its concerns and appreciating the CMSINFO story for what it truly is – a BFSI outsourced services partner and not just a cash handler. We reiterate our positive stance (BUY / TP Rs650 / 23x implied FY26E P/E) given its ~15% earnings CAGR (FY24-26E) / 25% RoCE.
Jefferies on IGL
Hold Call, TARGET Rs 485
EBITDA Was 20% Ahead Of Est On Lower Gas Costs
Volumes Declined YoY And Were 2% Below
Expect Vol Growth To Remain Subdued Over Fy25-27e
Slowdown In Delhi (70% Of Vol) & Growing EV Risk
Rising APM Shortfall Puts A Lid On Margins
Recent Price Hikes May Not Compensate Fully For The Higher Reliance On LNG
Cut Earnings By 8%/1%, On Lower Margin Assumptions
Macquarie on Zydus Life
Upgrade to O-P from U-P, TP raided to Rs 1365 from Rs 550
Co has strong US generics pipeline for next 3 yrs; while co continues its work on its specialty pipeline
Build a 15% top-line CAGR in FY25E-26E for US biz
India biz is also improving
Expect EBITDAm to improve from 27% in FY24 to 30%+ in FY25E/26E, driven by ltd. competition launches in US & improving field force productivity in India biz, though offset partially by higher R&D expenses
Jefferies on Adani Green
Initiate Buy, TP Rs 2130
Strong industry tailwinds
Khavda 30 GW execution– game changer
To raise capacity 4.6x from 11GW to 50GW by 2030
B/S leverage to reduce to 2.8x by 2030 vs 6.4x
Nifty closed @24,835 (+428.75) and Sensex @81,333 (+1292.92) on Friday GIFT Nifty was trading at 25,075 (as of 7:30 am)
FIIs net bought equities in cash to the tune of Rs. 2,546 cr whereas DIIs bought equities in cash worth Rs. 2,774 cr on July 26 2024
Ola Electric Mobility Ltd has priced its IPO at Rs 72 - 76 per share valuing the company at Rs 33,522 cr a steep discount to the fund raise valuation in December 2023
UltraTech Cement to acquire a 32 72 stake in India Cements from its promoters and their associates to up South play
Dr Reddy’s Laboratories PAT dropped by 0.9% y/y to Rs 1,392 cr during 1QFY25 while the revenues grew to Rs. 6,758 cr (+14 y/y)
ICICI Bank reported a 15% y/y growth in net profit during 1QFY25 aided by treasury gains despite higher provisions NII rose by 7% y/y to Rs 19 553 cr led by healthy growth in advances
Punjab National Bank reported a net profit of Rs 3,252 cr in 1QFY25 up 159% y/y NII increased to Rs 10,476 cr in 1QFY25 up 10% y/y
Sumitomo Chemical India consolidated net profit rose 105% y/y to Rs 127 cr in 1QFY25 against Rs 62 cr during 1QFY24
After Paints, Aditya Birla Group forays into branded jewellery retail business with an investment of Rs 5000 cr under a new brand name Indriya
NTPC reported a 12% rise in consolidated net profit at Rs 5,506 cr in 1QFY25 mainly on the back of higher income
REC reported a 17% a rise in consolidated net profit to Rs 3,460 cr in 1QFY25 mainly on the back of higher revenues
Interglobe Aviation reported a profit of Rs 2,727 cr in 1QFY25 down 12% y/y as higher expenses overshadowed strong air travel demand
Indian ADRs: Infosys (+3.5%), Wipro (+3.0%), ICICI Bank (+1.6%)

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