HSIE Results Daily: Larsen & Toubro, Bharat Petroleum Corporation, Dr Reddy's Laboratories, Petronet LNG, Mahindra & Mahindra Financial Services, Indraprastha Gas, Nuvoco Vistas Corporation, Symphony, Teamlease Services
Mahindra & Mahindra Financial Services: MMFS reported a mixed quarter with steady asset quality and healthy loan growth (+25% YoY), offset by sustained pressure on NIMs (~6.6%) and subdued disbursements (+7% YoY). Credit costs normalised in Q3 to ~1.5% and remain on track at ~1.5-1.7% in FY24, although the volatility in credit costs remains a concern. MMFS remains focused on building customer (greater affluence) and product diversification (SME, etc.), along with forging partnerships to drive fee income. However, the rising cost of funds amidst a tight liquidity environment and investments in tech and distribution are likely to provide a downside risk to a RoA of ~2.5% by FY25. We reduce our FY24/FY25E earnings estimates by 14%/4% to factor in NIM compression and higher credit costs, maintain ADD with a revised SOTP-based TP of INR290 (standalone at 1.7x Sep-25 ABVPS). Indraprastha Gas: We maintain our BUY recommendation on Indraprastha Gas (IGL) with a target price of INR 490, given (1) strong volume growth of ~11% CAGR over FY24-26E, (2) healthy margins supported by higher allocation of gas from the high-pressure, high-temperature (HPHT) fields to the priority sector, and (3) a strong portfolio of new geographical areas (GAs) ensuring volume growth visibility. Q3FY24 EBITDA/APAT at INR 5.6/3.9bn were up 32/41% YoY respectively but below our estimates, owing to lower-than-expected margins, partially offset by the higher-than-expected volume of 8.5mmscmd (+4% YoY, +2% QoQ). Nuvoco Vistas Corporation: We reiterate a BUY rating for Nuvoco Vistas, maintaining an unchanged TP of INR 515/share (based on 10x its consolidated Mar-26E EBITDA). In...