Citi On Trent
Initiate Buy Call, Target Rs 9,250
Transformation From Single-format To Multi-format Led To Higher Rev CAGR (36% In FY19- 24)
Multi-Category (Fashion & Lifestyle, Grocery, Personal Care) Player Led To A Higher Rev CAGR
Model For Trent Industry-leading Rev/EBITDA/PAT CAGRs Of 41%/44%/56% In FY24- 27
Leveraging On Supply Chain & Learnings From Westside & Zudio, Co Is Turning Around Star
Trent Can Meaningfully Scale Up Other Pilot Projects (MISBU, Samoh, MAS JV)
Include Trent In Pan-Asia High-Conviction Focus List
Investec on IEX
Initiate long FAST, TP Rs 215
STK plummeted 17% over past 2 days, mainly due to media reports about an upcoming submission of a simulation report by Grid India, post which CERC will decide on market coupling timelines.
While we have no insights on timelines for notification, believe process of operational implementation will be lengthy & may not significantly benefit power ecosystem
Expect IEX to deliver healthy overall vol & EBIDTA growth in Q2
Expect additional clarity on coupling during Q2 results; however, operational implementation should take 2yrs, which ensures near-term earnings will be stable
Furthermore, val corrected to 35x P/E for FY26e
Bernstein on PB Fintech
Outperform Call, Target Rs 1,720
Co Talking About Backward Integration With Hospitals
Healthcare Biz Idea Is Not Clear For Now, But Seems To Be Aimed At Revamping Healthcare Mkt
Size Of The Planned Financial Commitment Is Not Clear
Plan Is To Fund This From The $650 m Of Cash On Balancesheet
Investors Bought Into Co Story For High Growth, Strong Business Model, & Its Cash Generation
Some May Look At Backward Integration As Meaningful Shift From Capital-Light Biz Model
Macquarie on HDFC Bank
Outperform Call, Target Rs 1,900
Q2 Loan Growth May Dip Below 10% YoY
Reportedly, Co Is Looking To Sell Rs 60,000-70,000 Cr Loan Assets
Note That Q2FY25 Will Be 1st Quarter Post Merger When YoY Numbers Will Be Comparable
Due To Base Effect & Sell-down As Per Reports, Q2 Loan Growth Could Be Less Than 10% YoY
Expect NIM To Improve A Further 5 bps QoQ In 2QFY25 To 3.52% Vs Most Other Banks
HDFC Bank Peers May Report Flat To Slightly Declining Margin
Nomura on HDFC Bank
Neutral Call, Target Rs 1,720
Sell-down Accelerate LDR Resolution, But Affect Medium-term EPS & RoE
Cut FY26-27 EPS By 2%
Overall Market For Securitization Of Loans Is Projected To Be `2 Lk Cr In FY25
Planned Loan Sell-Downs Alone Can Potentially Be 30-35% Of Market
It Remains To Be Seen Whether Such Large Volumes Can Be Absorbed
Nomura on Crompton Cons
Buy Call, Target Rs 498
Co Maintained That Its Premiumisation Focus Remains On Track Across Segments
Over Longer-Term, In Fans, Co Believes Stricter Govt Regulation On Efficiency Norms Will Drive Mkt
Crompton Believes It Will Benefit From Stronger Premiumisation Push
Focus On Alternate Channels Like Modern Trade/e-Commerce
On Butterfly, Management Stated That Restructuring Is Largely Over
Revenue Growth Should Be Visible In H2, As Per The Co
MS on Crompton Cons
Equal-Weight Call, Target Rs 323
Rev Growth Guidance In Mid-teens (10-12% From Base Biz Plus 2-3% From New Businesses)
EBITDA Margin To Improve Nearly 200 bps With Product Mix And Operating Leverage
Consumer Demand – Near-term Weakness Owing To Inflationary Pressure
Festive Demand In South (Onam) Was Lower YoY
Margin To Improve In H2, In Long Run Expects 10% EBITDA Margin
UBS on Hero MotoCorp
Sell Call, Target Rs 3,350
Wholesale Volumes And Festive Optimism Clouding Retail Underperformance
Festive Strength Has Not Aided In Full-year Performance
Substantial Retail Market Share Loss Despite Launches; Sep’24 Below 24%
Stock Trading At 26x FY26 PE, More Than 3SD Higher Than Its 5-yr Historical Average
HSBC on Tech Mahindra
Hold Call, Target Rs 1,600
There Is Significant Potential For Mining In Co’s Non-telco Client Base
Telecom Outlook Remains Uncertain
Margin Expansion Is Highly Contingent On Pyramid Adjustment
Post Recent Run-up, Expect The Stock To Remain Rangebound
HSBC on Alembic Pharma
Upgrade To Hold, Target Raised To Rs 1,130 From 1,010
Take More Constructive View Of Efforts To Improve Quality Of US Filings
Rising Share Of Differentiated Products To Help De-Risk Its US Sales Growth Long Term
Execution Remains Key For US Sales Pick-up
HSBC on Ola Electric
Buy Call, Target Rs 140
Found Most Ola Service Stations Overwhelmed By Service Requests
Co Is Undergoing Multiple Initiatives To Improve Situation; Positively, Many Issues Seem Transitory
Think An Improvement In Service Quality Is Required Before Critical Launch Of Motorcycles
CITI on GAIL
Buy, TP Rs 260
Identify 3 key catalysts that could play out over next 6-12 months that believe are not yet priced in:
1) Upside to transmission tariffs;
2) Gas being brought under GST;
3) Restructuring of CGD investments
