Jan 17, 2025, 1:53 pm IST
Result Update: Ceat Ltd | Muted operating performance; Demand remains robust
“Robust growth in 2W tyre demand and focus on exports is driving growth for CEAT. The company continues to gain market share across segments. Overall demand also remains healthy with 2W and TBR volumes expected to grow by double-digit and high single-digit respectively. Continued expansion into international market (targets 26% exports revenue share) is also expected to support growth over medium-term. CEAT took price a increase (1.5% on blended basis) during 3Q and plans another price hike in the near-term to mitigate the impact of increase in RM basket. While NR prices have cooled-off from its peak, it continues to remain elevated and recent spike in crude prices remain a key monitorable. We have therefore cut our EPS est. by 5-7% for FY26E / 27E owing to continued RM inflation and lag in price increases. Stock trades at 13-14x on 1-yr fwrd PE basis. We maintain BUY with Mar’26 TP of INR 3,400 (15x PE),” said Ronak Mehta of JM Financial Institutional Securities Limited.
Jan 17, 2025, 1:32 pm IST
Result Update: Axis Bank | 3QFY25: Protecting profitability in a tough environment
Sameer Bhise of JM Financial Institutional Securities Limited said, “Axis bank reported a muted quarter with PAT at INR 63bn (+3.8% YoY, -8.9% QoQ) led by an inch up in credit costs (0.89% vs 0.67% QoQ). Although profitability remained protected supported by a moderation in operating expenses (-4.7% QoQ) which led to cost/assets improving to 2.39% (-17bps QoQ). Slippages during the quarter inched up to INR 54.3bn (vs INR 44.4bn QoQ) led by agriculture segment which are seasonal in nature. Large part of incremental slippage within the retail segment was mainly due to the unsecured loan book (PL+CC) which is expected to remain elevated in the near term and improve only gradually. On the growth front, both loans (+8.8% YoY) and deposits (+9.1% YoY) witnessed a slowdown in line with the broader industry trends. This soft growth reflects the system-wide challenges, including high CD ratios and on-going asset quality concerns within the unsecured loan segment. Margins (calc.) remained steady at 3.59% (-4bps QoQ) supported by a calibrated increase in CoFs to 5.42% (+6bps QoQ). Despite the broader challenges of soft growth and rising credit costs across the system, we believe Axis Bank remains well-positioned to navigate these headwinds given their a) strong operational leverage, b) prudent risk management policies, and c) healthy cushion of standard asset provisions (1.2% of advances). Axis continues to remain our top pick given limited downside risk from current levels (core bank trading at 1.2x FY27E BVPS). We expect RoA/RoE of 1.7%/15.4% by FY27E. Maintain BUY with a TP of INR 1445 (valuing core bank at 1.7x FY27E BVPS).”
Jan 17, 2025, 1:30 pm IST
Result Update: Infosys | Seasonality meets seasonality
“INFO’s headline numbers were strong - revenues grew 1.7% cc QoQ, exceeding expectations (JMFe: 0.6%). Underlying construct however was not. Sequential growth was constituted by higher pass-through (1.5% QoQ; likely more in cc) and in-organic contribution (0.2%), implying flat core business growth. Essentially, seasonal softness due to furloughs was offset by seasonal uptick in pass-through revenues. Scepticism around rising pass-through (+5 ppt over 3Q22-3Q25) is understandable. But it shouldn’t be surprising. Large deals’ contribution to INFO’s revenues has increased by c.20ppt over this period, per our estimate, which typically has higher pass-through. Importantly, INFO has managed its impact on margin as well as FCF well. INFO did indicate some reversal of pass-through in 4Q, as usual. Guidance raise– from 3.75-4.5% to 4.5-5% - in spite of that is therefore net positive, in our view. A still weak deal TCV (-30% YoY FYTD) is balanced by improved outlook on discretionary spend. Overall, 3Q performance did little to change our view, and estimates, either way. Our FY25-27E EPS move up marginally by 1-2%. We roll forward our TP to INR 2,200 (from INR 2,170). INFO is relatively better placed to capture improving discretionary spend. BUY,” said Abhishek Kumar of JM Financial Institutional Securities Ltd.
Jan 17, 2025, 12:53 pm IST
Result Update: Reliance Industries | Strong show led by rebound in retail business growth; BUY
“RIL’s consolidated 3QFY25 EBITDA was 4% above JMFe and 5% above consensus at INR 438bn (up 12.1% QoQ and up 7.7% YoY) due to beat in Retail, O2C & E&P business EBITDA, while Digital EBITDA was a tad lower. Retail business EBITDA was 10% above JMFe at INR 68.4bn (up 9.1% YoY) led by 8.8% YoY revenue growth driven by festive buying and the wedding season, after weak growth in the last 3 quarters. O2C business EBITDA, at INR 144bn, was 5% above JMFe due to better-than-expected GRMs (implied ~USD 9.4/bbl) though petchem margin continued to be weak. E&P segment EBITDA was also 5% above JMFe at INR 55.7bn. However, Digital EBITDA was 1.5% lower than JMFe at INR 166.4bn on slightly lower ARPU (at INR 203.3 vs. JMFe of INR 204) and slightly higher opex though net subscriber (subs) addition was at 3.3mn (vs. JMFe of 1.5mn loss), suggesting end of the consolidation trend witnessed in 2QFY25. Capex was a tad lower QoQ at INR 323bn in 3QFY25 (vs. INR 340bn in 2QFY25); net debt also declined slightly, by INR 9.7bn QoQ to INR 1,155bn at end-3QFY25. We reiterate BUY on RIL (unchanged TP of INR 1,660) as the stock is near our bear-case valuation, we expect net debt to decline gradually, and also because RIL has industry leading capabilities across businesses to drive robust 14-15% EPS CAGR over the next 3-5 years,” said Dayanand Mittal of JM Financial Institutional Securities.
Jan 17, 2025, 12:24 pm IST
IIFL Finance In Focus On Raising USD 325 Million Bonds
By offering a Fixed Rate Senior Secured Bond with a tenor of 3.5 years and an attractive coupon rate of 8.75%, IIFL Finance Limited has successfully raised USD 325 million. With this issue, IIFL further diversifies its borrowing profile and makes a major comeback to the global bond markets following its initial offering in February 2020. International institutional investors from Asia, Europe, and the US responded in force to the bond sale. At the final pricing guidance, the transaction achieved a peak demand of USD 1.15 billion, having started with an initial pricing guidance of 9.00%. With 20% allocated to Asia, 25% to EMEA (Europe, the Middle East, and Africa), and 54% to the US, the final order book totalled more than USD 730 million.
Jan 17, 2025, 11:51 am IST
SEBI Issues Warning to Jammu & Kashmir Bank Over Delayed Disclosure
The Securities and Exchange Board of India (SEBI) has issued an administrative warning letter to Jammu & Kashmir Bank. The warning pertains to a delay in submitting information regarding the appointment of the bank's Managing Director and CEO.
Jan 17, 2025, 11:15 am IST
Jubilant Pharmova's US Subsidiary Receives Five Observations from USFDA
The United States Food and Drug Administration (USFDA) inspected the solid oral formulations facility of Jubilant Cadista Pharmaceuticals Inc., a subsidiary of Jubilant Pharmova, located in Salisbury, USA. Following the inspection, the USFDA issued five observations, none of which were repeat findings.
The facility is no longer expected to manufacture any products, as its manufacturing operations were previously closed, a development disclosed on April 18, 2024.
Jan 17, 2025, 10:42 am IST
Bajaj Healthcare Secures Exclusive Rights for Magnesium L Threonate Production
Bajaj Healthcare has obtained exclusive rights from Threotech LLC to manufacture, distribute, and sell the finished formulation of Magnesium L Threonate (Magtein) in India. The brand Magtein, owned by Threotech LLC, boasts a global sales value of approximately 8 million.
Jan 17, 2025, 8:48 am IST
Stocks Live Updates: PSU Stock To Trend
Bank of Baroda (Bank), one of India’s leading public sector banks, today announced that it has raised Rs. 5,000 crore through the issuance of Long-Term 10-year Infrastructure Bonds. The Bank received a strong response from investors, with cumulative demand of Rs. 14,830 crore from 110 bids, against the total issue size of Rs. 5,000 crore (Base issue of Rs. 2,000 crore and Greenshoe option to retain oversubscription up to Rs. 3,000 crore). This translates to 7.4 times the base issue size and ~3 times the total issue size. The Bank retained full issue size of Rs. 5,000 crore at a competitive rate of 7.23%.
Jan 17, 2025, 8:41 am IST
Stock Market Live Updates: Reliance Stock In Focus
Billionaire Reliance Industries (RIL) reported a consolidated net profit of Rs 18,540 crore in the third quarter of FY25, registering growth of 7.4% YoY and 11.94% QoQ. The profit was attributable to owners of the company. Further, Reliance recorded 6.97% YoY and 3.56% QoQ growth in consolidated revenue from operations to Rs 2,43,865 crore in the quarter under review.
Jan 17, 2025, 8:41 am IST
Stock Market Live: Infosys Share In Focus
Tech giant, Infosys has reported consolidated net profit of Rs 6,806 crore in Q3 of FY25, registering growth of 11.4% YoY and 4.6% QoQ. The performance was in line with estimates. Consolidated revenue stood at Rs 41,764 crore, rising by 7.6% YoY and 1.9% QoQ.
Jan 17, 2025, 8:40 am IST
Market Live Updates: Stocks In Focus
Prashanth Tapse, Senior VP (Research), Mehta Equities: Nifty saw a strong recovery yesterday, marking its third consecutive day of gains, reclaiming the 23,300 level. Options data suggests Nifty is likely to trade within the 22,400-24,400 range, with 24,000 acting as a major resistance. Call writing was observed at 23,500, while significant Put writing occurred at 23,000. Today, the market will react to Q3 results from Infosys and Reliance, with RIL posting a 12% profit increase to Rs 21,930 crore and Infosys reporting an 11.4% profit rise to Rs 6,806 crore. Upcoming catalysts include the Union Budget and Federal Reserve policy meeting. Key stocks to watch: NTPC, HAL, and Apollo Hospitals.
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