HSIE Results Daily: Indian Oil Corporation, Godrej Consumers, Ambuja Cement, Gail, ACC, CDSL, V-Guard Industries, Nuvoco Vistas Corporation, PNC Infratech, Greenlam Industries, Greenpanel Industries
ACC: We maintain BUY on ACC, with an unchanged TP of INR 2,440/share (11x its Sep-25E consolidated EBITDA). Cement volume rose 18% YoY in Q2FY24 on a low base from last year. However, it declined 14% QoQ, impacted by heavy rains in Himachal and muted demand in central and eastern regions. NSR fell 1% QoQ due to muted pricing. Opex rose 2% QoQ owing to op-lev loss and higher other expenses. The impact is cushioned by lower freight costs (INR 70/MT) and input costs (INR 20/MT). Thus, unit EBITDA contracted INR 140/MT QoQ to INR 668/MT. The long-pending Ametha clinker 3.3mn MT capacity started in Q2FY24, and its 1mn MT cement/16MW WHRS plant will start soon. Management is taking on various green initiatives to boost margins. CDSL: CDSL delivered a solid quarter (significant beat vs. estimates) with a 39% QoQ revenue growth (highest ever), led by market-linked revenue growth and a stable annuity stream. The growth was driven by a jump in transaction revenue, IPO/corporate action, KYC fetch/creation and seasonally strong e-voting revenue. The Demat account addition recovered, and CDSL added ~8mn accounts in the quarter, which is a seven-quarter high. CDSL maintains its leadership position with a 74% market share and 89% incremental share. We expect the growth to recover in FY24E, supported by (1) recovery in BO account addition, (2) higher transaction revenue, driven by growth in delivery volume, and (3) stable annuity revenue. The insurance opportunity remains an option value and will aid growth subject to regulatory push. The compulsory Demat of non-small...