Buy
pdf post cache
Buy
pdf post cache
HDFC Securities
Prestige Estates: Prestige Estates (PEPL) registered the second highest-ever presales in any quarter by value and volume at INR 53bn (+111%/-25% YoY/QoQ) and 5.5msf (+88%/-20% YoY/QoQ) resp. This was mainly on the back of robust presales in Prestige City Hyderabad with 12.6msf of saleable area contributing INR 24bn to the presales. On a blended basis, realisation stood at INR 9,755psf (+13%/-6% YoY/QoQ). For FY24, PEPL expects INR 200bn+ (9MFY24 INR 163.3bn achieved). The first tower of Prestige Ocean Towers Mumbai was launched and PEPL achieved INR 4bn in sales (40% of launched inventory). Prestige Nautilus in MMR will be launched in 1QFY25. It will launch its first project in NCR, Prestige Bougainvillea Gardens, in 1QFY25 with a saleable area of 3.1msf. We maintain BUY, with an increased SOTP-based TP of INR 1,390/sh, to factor in better-than-expected realisation/presales and an improving visibility on office assets. PEPL has closed some large BD transactions in Noida/Delhi and this shall add incrementally from Q3FY25. Ahluwalia Contracts: Ahluwalia Contracts (AHLU) reported a strong quarter with revenue/EBITDA/APAT beating our estimates by 15.1/19.1/22.5%. EBITDA margin stood at 10.9% (+128/+94bps YoY/QoQ, vs. our estimate of 10.5%). AHLU increased its FY24 revenue guidance of 20% YoY growth to 30%+, with EBITDA margin (incl. other income) upwards of 11%. The total order inflow in FYTD24 stands at INR 58.3bn ex of L1 of INR 33bn. The OB as of Dec'23 stood at INR 112.5bn (~4x FY23 revenue), excluding L1 in two projects of INR 33bn (international jewellery park in Mumbai and Guwahati sports complex). AHLU is...
Buy
pdf post cache
Buy
pdf post cache
Buy
pdf post cache
Well poised to outperform across all its verticals
Motilal Oswal
Alert
Buy
pdf post cache
BOB Capital Markets Ltd.
Net blended realisation per vehicle grew 6% YoY in Q2 and volumes increased 11%
Alert
Results Update
pdf post cache
Buy
pdf post cache
HDFC Securities
NCC: NCC reported an all-round outperformance in Q2FY24, beating our estimates on all fronts. During the quarter, it received an arbitration award of INR 1.98bn out of INR 6.1bn receivable from Sembcorp and another claim settlement of INR 1.5bn from NHAI. Further, pending legal proceedings, it charged INR 3.5bn (net-off provisions) from revenue from operations. This resulted in a net impact of INR 2/1.5bn on the revenue and APAT. Adjusted EBITDA margin: 10.7% (+105/+75bps YoY/QoQ, vs. our estimate of 9.7%, owing to lower employee expenses and fixed and other overhead expenses). With an inflow of INR 122.9bn in Q2FY24, the H1FY24 OI came in at INR 204.4bn (~78% of FY24 guidance of INR 260bn+), taking the OB as of Sep'23 to an all-time high of INR 618bn (~4.6x FY23 revenue). It guided for FY24 revenue to grow at 20% YoY with an EBITDA/PAT margin of 10.2/4.5% and FY24-end debt at INR 15-16bn. Given the all-time high order book, execution ramp-up, and robust balance sheet, we recalibrate FY24/25/26E estimates higher and increase our TP to INR 231/sh (13x Sep-25E EPS). We maintain our BUY rating on NCC. Repco Home Finance: REPCO reported yet another quarter of strong earnings growth on the back of sustained NIM reflation and muted credit costs. Portfolio growth continued to be sluggish due to muted disbursals and is incrementally becoming a concern. Given an improving earnings profile, loan growth becomes a key monitorable, especially in light of the recent organisational changes (separate sales verticals) and tech transformation, which could offer some fillip, although...
Hold
pdf post cache
Buy
pdf post cache
Sharekhan
Buy
pdf post cache
HDFC Securities
LIC Housing Finance: LICHF's Q1FY24 earnings were significantly ahead of our estimates on the back of sharper-than-expected reflation in NIMs, despite sub-par AUM growth (+8% YoY) and asset quality. NIMs reflated sharply for a second consecutive quarter (+28bps QoQ) to 3.2% (Q4FY23: 2.9%), primarily driven by asset repricing and liquidity management. GS-II/GS-III clocked in at 5.8%/5%, implying negligible collections in the softer buckets, while individual home loan GNPA were at 2.2%. Loan growth continues to be tepid (8% YoY), on the back of a sharp fall in disbursals (-29% YoY), exacerbated by business throughput disruptions from the ongoing tech transformation. LICHF is likely to continue facing a trade-off between growth and margins in an elevated competitive intensity environment, while the margin gains are likely to reverse themselves through the rest of FY24. We revise our FY24/FY25 earnings estimates upwards to adjust for stronger NIMs maintain REDUCE, with revised TP of INR395 (0.8x Mar-25 ABVPS). Aditya Birla Fashion and Retail: ABFRL's Q1FY24 print disappointed on profitability. The bigger concern is the rising debt and elevated inventory (net debt: INR21bn likely to inch up to INR28bn by exit FY24) amid slowing demand. This position often lends itself to accidents. Q1 revenue grew 11.2% YoY to INR31.96bn (in-line). Sales densities continue to normalize downwards in fact, remain weak in Pantaloons. Margins were sub-optimal courtesy (1) lower retail throughput driven by normalizing demand, (2) continued investments in new forays and (3) brand investments. GM/EBITDAM contracted 109/715bps YoY to 54.8/9.1% (HSIE: 55.8/9.2%). Investments are likely to continue. Consequently, we cut our...
Results Update
pdf post cache
Buy
pdf post cache
Buy
pdf post cache
Profitability improvement across segments
ICICI Securities Limited
Mahindra & Mahindra’s (M&M) Q1FY24 EBITDAM at 13.2% (+105bps QoQ) was ~20bps higher than consensus as both FES and auto margins improved. Auto margin at 7.5% (+44bps QoQ) was at FY19 levels despite commodity inflation and BS VI related cost increment. FES segment margin improved to 17.5% (+110bps QoQ).
Alert
Buy
pdf post cache
Buy
pdf post cache
Buy
pdf post cache
Buy
pdf post cache
HDFC Securities
City Union Bank: City Union Bank's (CUBK) Q4FY23 earnings missed estimates on account of a 23bps sequential reduction in NIMs and lower other income. The management conservatively recognised impairment to the tune of ~INR800mn (annualised slippages at an elevated ~3.8%), offset by better recovery/write-off, driving GNPA lower to 4.4%. Management has further revised its loan growth guidance downward to 12-15% on the back of moderate growth prospects in the existing portfolio and no visible signs of improvement in the MSME investment cycle. The management has guided for steady return ratios on the back of accelerated recoveries in NPAs and written-off accounts, which are expected to offset the elevated funding costs from lagged re-pricing of deposits. We tweak our FY24/25E numbers to factor in elevated CoFs, partly offset by moderation in credit costs maintain BUY, with a TP of INR167 (1.5x Mar-25 ABVPS). PNC Infratech: PNC Infratech (PNC) reported Q4FY23 revenue/EBITDA/APAT of INR 21.1/2.8/1.8bn, beating our estimates on all fronts by 5/8.8/11.5%. The executable order book (OB) as of Mar'23 stood at INR 205.3bn (~2.9x FY23 revenue), with EPC/water segments contributing 63/33% of the OB. The company expects to sign balance cover agreements for water projects with the UP government in FY24. It guided that FY24 revenue will grow by 15% YoY (INR 25bn from the water segment) with an EBITDA margin of 13.3-13.5% and an order inflow (OI) of INR 100-120bn. FY24 capex guidance stands at INR1-1.2bn and NWC days at 75-80. The company plans to infuse INR 5.4/4.6/3.7/3.3bn equity in FY24/25/26/27. HAM asset monetisation plan...
Buy
pdf post cache
Buy
pdf post cache
