This hotels chain has risen by 8.3% over the past week following the announcement of its Q2FY25 earnings on November 7. Indian Hotels’ net profit surged by 3.3x YoY to Rs 554.6 crore in Q2FY25, mainly due to an exceptional gain of Rs 307 crore from the incorporation of Taj SATS as a subsidiary of the company. Taj SATS is a joint venture (JV) between Indian Hotels and Singapore Airport Terminal Services (SATS) specialising in airline and institutional catering. IHCL holds a 51% stake in the JV.
Revenue increased by 27.6% YoY to Rs 1,890.2 crore, driven by improvements in the hoteliering and air & institutional catering segments. Revenue beat Trendlyne’s Forecaster estimates by 8.6%, and was higher than the industry growth of 10.2%. EBITDA margins expanded by 270 basis points to 27.5%. During the quarter, growth was fueled by strong demand, which had slowed in Q1, due to elections and heatwaves. Additional wedding dates also boosted performance.
The company’s revenue per available room (RevPAR) for Q2FY25 grew by 12% YoY to Rs 7,200, outperforming its industry and competition with a premium of 66%. Occupancy stood at 71% during the quarter, much higher compared to the industry’s 61%.
Indian Hotels signed 23 and opened six hotels in Q2FY25; it targets to open 25 new hotels in FY25. Presently, the company's portfolio of hotels stands at 232 operational hotels with 118 new hotels in the pipeline. Going forward, the company targets double-digit revenue growth for FY25. Commenting on this, Puneet Chhatwal, the CEO of the company said, “During the first half, which is the weaker half, we've already achieved 11% YoY revenue growth and hope to deliver on the double-digit promise on a much higher base going forward in Q3 and Q4. With 30% higher wedding dates and an increase in foreign tourist arrivals (FTAs) expected in H2, we remain confident of comfortably delivering double-digit revenue growth”.
Axis Direct has a ‘Buy’ rating on Indian Hotels with a target price of Rs 800. The brokerage believes the increase in FTAs is expected to positively impact ARRs (the company’s average room rate stood at Rs 10,100 during Q2). It has a positive outlook for the overall industry as the steady growth in the Indian middle class and their increased spending power is projected to contribute an additional Rs 5,200 crore annually to the hospitality market.
This motorcycle producer surged 6.4% on Thursday following the announcement of its Q2 results. Eicher reported a 5.2% YoY revenue growth at Rs 4,617 crore, with net profit increasing by 8.3% YoY to Rs 1,100 crore. Both revenue and net profit beat Forecaster estimates by 3.8% and 1.5% respectively.
In the first half of this fiscal year, Royal Enfield’s market share in the premium segment (greater than 250cc motorcycles) dropped to 7.5% from 8.2% a year ago as the sales volumes came in flat at 4.5 lakh motorcycles. In a bid to gain market share, the company announced its plans to enter into the EV segment with its new sub brand - The Flying Flea.
Meanwhile, Eicher’s joint venture with Volvo, VECV, has the highest market share in the Light & medium duty (LMD) segment at 36.4%, and contributes over 10% to Eicher Motors’ net profit. VECV saw its market share on a consolidated basis rise from 15.9% a year ago to 18.9%, thanks to volume growth of 6.3%. The LMD buses outperformed other segments, with volume growth of 22.3% YoY in Q2FY25.
Commenting on the outlook, MD & CEO of Eicher Motors, Siddhartha Lal, said, “The first half has not been so good for the industry because of low government spending on capex and uneven monsoon, but we expect a better second half.” This optimism is reflected in the October sales volume, where the company sold over 1.1 lakh motorcycles, 30% higher than its monthly average of around 80,000.
Jefferiesmaintains a ‘Buy’ rating on the stock as they expect Royal Enfield to be a key beneficiary of the two-wheeler premiumisation trend. They believe that the toughest phase of competition for Eicher Motors is over, as volumes show signs of growth. With a target price of Rs 5,500, the stock has a potential upside of 12.6%.
This paints company fell by over 12% in the past week. The company declared an underwhelming Q2FY25 result on 9th November. Its net profit fell by 42.4% to Rs 694.6 crore on the back of a rise in cost of raw material, while its revenue fell by 5.1%. The firm missed Trendlyne’s Forecaster estimates for revenue by 6.3% and net profit by 36.8%. The stock appears in a screener for stocks with PE higher than the Industry PE.
Q2FY25 was weaker than expected for the company due to sustained sluggish demand. The company’s domestic business took a hit as its decorative and home decor segment (which constitutes over 88% of net revenue) saw a 6.7% YoY revenue decline mainly on the back of the price cuts taken last year, and weak consumer sentiment due to heavy rains & floods. The company’s international business remained flat due to currency devaluation in Ethiopia and political unrest in Bangladesh. However, the Middle East and Sri Lanka markets showed strong growth. To counter inflation, the company implemented a price increase of around 1.2% in Q2FY25, but expects to see its full impact in H2FY25.
Amit Syngle, MD & CEO of the company, noted the weaker performance in metro towns, larger cities, and the B2B market, where Asian Paints holds a 15-20% share. The industrial segment however, performed well. He remains cautious about demand recovery in Q3FY25 due to challenges in urban markets but is optimistic that stronger rural demand and infrastructure spending will drive growth in the second half of the year. Syngle also added, “Our expansion continues strongly, with more retailers opening in urban suburbs and newer towns. We now have nearly 1.67 lakh retail touchpoints, reflecting a robust market footprint.” On FY25 guidance he said, “For H1, we've ended up at about 18.5% EBITDA margin. So we are still within our previously mentioned overall guidance range of 18-20% for FY25. “
KR Choksey has retained a ‘Hold’ rating on Asian Paints with a target price of Rs 2,566. The brokerage has lowered its FY25 and FY26 EPS estimates by 9.1% and 14.2%, respectively, due to a miss in Q2FY25 estimates and margin pressures from increased competitive intensity. However, it highlights that despite higher costs and margin contraction, the company's focus on innovation, rural demand, and infrastructure spending offers hope for a recovery in the second half of FY25.
This pharma company rose by 1.2% on November 13 after announcing its Q2FY25 results. The company’s net profit grew 11% YoY to Rs 688.6 crore in Q2FY25, driven by inventory destocking, beating Trendlyne Forecaster estimates by 2.8%. However, revenue decreased marginally to Rs 3,414.7 crore due to lower US sales. The company appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.
The Q2 revenue was hit by a drop in international sales, which fell by 12.9% YoY to Rs 920 crore. US sales, which contribute 17.7% to total revenue, declined by 25% to Rs 570 crore due to limited new launches, price erosion, and volume decline in existing products. Sales from other international markets, including Latin America, Australia, and Europe, made up 9.5% of total sales. India sales grew by 5.7% YoY, reaching Rs 2,461 crore.
In H1FY25, the company launched two products and received eight ANDA approvals, bringing the total number of ANDAs filed to 178, with 152 final approvals to date. Alkem has also started operations at its contract development and manufacturing organization (CDMO) plant in the US, which is expected to drive growth in the medium term. Additionally, it has completed phase 3 clinical trials for the Denosumab drug in the US, which has a global market size of $3.3 billion and is expected to reach $5.1 billion by FY28.
Speaking after the results, the company’s CEO, Vikas Gupta, said “We have tackled our past supply challenges by improving inventory levels, bringing back orders in the US down from 38% to just 2%. These improvements position us well for stronger US performance in H2.” He also expects mid-single-digit growth in overall revenue and aims for a 100 basis point improvement in margins, targeting around 18.5-19.5% for FY25.
Post results, Motilal Oswal reiterates its ‘Neutral’ rating on Alkem with a target price of Rs 5,720, indicating an upside of 3.5%. The brokerage notes that Alkem is refocusing its US generics business by reducing low-margin products and concentrating on products with less competition. Additionally, it is gearing up for CDMO opportunities, expanding its biotech manufacturing capabilities starting from Q4FY25 to Q1FY26.
Thisfootwear manufacturer has fallen 12.9% over the past week following the announcement of itsQ2FY25 results on November 8. Relaxo Footwears net profit has declined 16.9% YoY to Rs 36.7 crore, missing Forecaster estimates by 14.4%. Revenue decreased 5%YoY to Rs 679.4 crore during the quarter.
The drop in revenue was largely due to weak demand in both general and modern trade channels. In general trade, distributors faced high inventory levels, while Relaxo intentionally reduced e-commerce sales to counter excessive discounting from platforms like Flipkart and Amazon.
Chairman and Managing Director Ramesh Kumar Dua,said, “During the quarter, the industry witnessed an increase in lower priced, unorganised competition, which led to downtrading by consumers in a high inflation environment.” He also mentioned that the company chose not to lower prices or margins to unsustainable levels, which helped maintain operating margins during the quarter. However, higher depreciation costs impacted the company's net profit.
Instead of e-commerce sales, the company is expanding its distributor network across the country to improve its retail network. It is strengthening ties with retailers through the "Relaxo Parivaar" app, which serves over 70,000 outlets. For FY25, the company has allocated Rs 100 crore for capex, primarily for molds and machinery, with no plans for new capacity additions this year.
Looking ahead, the management is anticipating flat volume growth overall for FY25, with a target of 8-10% growth in the Sparx product line. Sparx is a budget footwear line that offers closed footwear at competitive prices, generally lower than competitors. This focus on closed footwear continues to drive its momentum and distribution.
Post results, Yes Securitiesmaintained its ’Sell’ rating with a target price of Rs 636. The brokerage projects a 4% volume growth CAGR from FY25-27, as the company aims to regain market share. It also expects a 3% annual increase in average selling price during this period due to a better product mix. Margins are expected to return to 14% by FY27. Overall, revenue, EBITDA, and net profit are forecasted to grow at a CAGR of 7%, 7%, and 10%, respectively, over FY25-27.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
