Buy
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Buy
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HDFC Securities
Mahindra & Mahindra Financial Services: MMFS reported a mixed quarter with steady asset quality and healthy loan growth (+25% YoY), offset by sustained pressure on NIMs (~6.6%) and subdued disbursem*nts (+7% YoY). Credit costs normalised in Q3 to ~1.5% and remain on track at ~1.5-1.7% in FY24, although the volatility in credit costs remains a concern. MMFS remains focused on building customer (greater affluence) and product diversification (SME, etc.), along with forging partnerships to drive fee income. However, the rising cost of funds amidst a tight liquidity environment and investments in tech and distribution are likely to provide a downside risk to a RoA of ~2.5% by FY25. We reduce our FY24/FY25E earnings estimates by 14%/4% to factor in NIM compression and higher credit costs, maintain ADD with a revised SOTP-based TP of INR290 (standalone at 1.7x Sep-25 ABVPS). Indraprastha Gas: We maintain our BUY recommendation on Indraprastha Gas (IGL) with a target price of INR 490, given (1) strong volume growth of ~11% CAGR over FY24-26E, (2) healthy margins supported by higher allocation of gas from the high-pressure, high-temperature (HPHT) fields to the priority sector, and (3) a strong portfolio of new geographical areas (GAs) ensuring volume growth visibility. Q3FY24 EBITDA/APAT at INR 5.6/3.9bn were up 32/41% YoY respectively but below our estimates, owing to lower-than-expected margins, partially offset by the higher-than-expected volume of 8.5mmscmd (+4% YoY, +2% QoQ). Nuvoco Vistas Corporation: We reiterate a BUY rating for Nuvoco Vistas, maintaining an unchanged TP of INR 515/share (based on 10x its consolidated Mar-26E EBITDA). In...
Buy
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BOB Capital Markets Ltd.
NAM: Strong growth but upside capped cut to HOLD. APOLP: Disappointing result on all fronts. ITC: Cigarette and paperboard businesses disappoint. LT: Order inflow guidance raised; maintain BUY. NTPC: Normal quarter, aggressive expansion; maintain BUY. MRCO: Domestic business still lacklustre. UTIAM: Core earnings miss estimates. ASTRA: Mixed quarter, guidance broadly intact
Results Update
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Buy
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Larsen & Toubro (BUY): Order inflow guidance raised; maintain BUY
BOB Capital Markets Ltd.
Q3 order inflows and topline strong but margins declined due to legacy orders in the mix
Alert
Buy
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Buy
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HDFC Securities
Birlasoft: Birlasoft (BSOFT) delivered strong Q2 performance, both on revenue (matching Persistent Systems' sequential growth) and margins. We believe that BSOFT's return potential is a combination of earnings growth trajectory (accelerating) and multiple rerating, supported by resilience and scalability of service portfolio, strong relative positioning, and recent leadership refresh (Birlasoft the next large mid-tier). Q2 performance was marked by manufacturing/BFSI verticals-led growth, large client mining (T10 grew ~2x of company average), strong deal velocity including USD 100mn+ large deal, and margin improvement despite wage hike impact. While growth acceleration and deal velocity are supported by changes in incentive structure and latent demand in ERP services (S/4 HANA transition), the margin upside is premised on improving business mix (BFSI traction), streamlining delivery organisation (leadership induction from tier-1) and sub-contracting optimisation. We maintain our BUY recommendation on BSOFT with an upgraded TP of INR 650, based on 23x Sep-25E EPS, supported by 23% EPS CAGR over FY23-26E and RoCE >22%. Aether Industries: We retain our BUY rating on Aether Industries, with a target price of INR 1,200, on the back of (1) capacity expansion-led growth, (2) advanced R&D capabilities, (3) technocratic management, (4) market leading position in most of its products, (5) strong product pipeline, and (6) marquee customer base. EBITDA/APAT were 14/19% above our estimates, mainly owing to lower-than-expected raw material costs and higher-than-expected other income. Mahanagar Gas: Our BUY recommendation on Mahanagar Gas (MGL) with a target price of INR 1,240 is premised on (1) attractive valuation, (2) improvement in volume growth due to the acquisition...
Results Update
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Buy
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Buy
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A beautiful detour to Middle East; surge in order inflow
ICICI Securities Limited
L&T had an excellent quarter and H1 led by: 1) a substantially higher order inflow; 2) completion of buyback; and 3) continued improvement in working capital. Order inflow for Q2 and H1 (ex-services) was INR 892bn, +100% YoY (vs. est. INR 600bn) and INR 1.25trn, +90% YoY.
Buy
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Larsen & Toubro (BUY): Strong run continues; maintain BUY
BOB Capital Markets Ltd.
Strong show in Q2 led by highest ever order inflows of Rs 892bn (exit book of Rs 4.5tn), robust execution and working capital efficiency
Buy
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Prabhudas Lilladhar
Alert
Buy
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A large win in the Middle East, likely to beat its order inflow guidance for FY24
ICICI Securities Limited
As per media reports (Link), L&T is the preferred contractor for USD 3.9bn order for Jafurah Unconventional Gas Field, Saudi Arabia (Source: MEED). Also, till date in FY24, L&T has announced orders worth over INR 750bn. With this significant accretion in orders, L&T could report >20% growth in order inflow in Q2 (excl. services), in our view.
Alert
Buy
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Results Update
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Buy
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HDFC Securities
SRF: We retain our ADD rating on SRF, with a target price of INR 2,426 on the back of (1) continued healthy performance from the speciality chemicals business (2) strong balance sheet and (3) deployment of capex for high-growth speciality chemicals business over the next 3-4 years to tap opportunities emerging from the agrochemical and pharma industries. Q1 EBITDA/APAT were 19/30% below our estimates owing to a 13% fall in revenue, higher-than-expected other expenses, lower-than-expected other income, and higher-than-expected tax outgo. Jubilant FoodWorks: Jubilant's Q1 print was operationally in line with revenue/EBITDA/PAT growth of 6/-9/-38% YoY. Revenue growth was largely store addition-led as LFL SSSG remained negative at 1.3% for the second consecutive quarter (c.2% four-year CAGR). The decline in ticket size more than offset order growth. However, the launch of the Red Hot Spicy Pizza range at INR 179 prize point (between pizza mania and gourmet) has arrested the decline in ticket size. While delivery revenue grew 8% YoY, dine-in sales were flat on slower footfalls in mall stores. On steady commodity prices, GM and EBITDAM improved sequentially. However, the key RM basket (milk and cheese) continues to remain at elevated levels over LY which shall restrict the scale of improvement in the coming quarters. Notwithstanding near-term demand pressures, Jubilant will focus on (1) driving LFL growth by strengthening value offering (2) improving cost efficiency and productivity (3) elevating customer experience (4) long-term strategic initiatives (commissary) and (5) calibrated network expansion. We maintain our EPS estimates and value Jubilant at 55x P/E on Sep'25 EPS...
Buy
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Buy
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ICICI Securities Limited
Larsen and Toubro (L&T) reported almost a perfect quarter – beat in order inflow, strong revenue growth and >100% payout in the form of share buyback of INR 100bn, and a special dividend of INR 6 per share. Additionally, despite a higher prospective order pipeline of INR 10trn for 9MFY24, the management decided to err on the side of caution and has maintained its guidance of 10-12% growth in order inflow because of the risk presented by the general elections next year.
Buy
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Buy
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