New Research Reports

Diamond in a coal mine

Demand remains soft; expect pick-up in second half

V2 Retail’s (V2R’s) Q2FY2025 numbers were a mixed bag, with revenues growing strongly by 64% y-o-y while EBIDTA margins lagged expectation at 8.7% (flat y-o-y) due to lower gross margins and higher employee cost.

Torrent’s revenue reached Rs. 2,889 crore, reflecting a 9% y-o-y increase and a 1% q-o-q rise, driven by growth in key geographies.

We retain BUY on TCI with an unchanged SOTP-based PT of Rs. 1,400, considering its sustained healthy earnings growth trajectory over the next 2-3 years.

Radico Khaitan Limited’s (RKL’s) Q2FY2025 numbers were strong beating estimates on all fronts, with net revenues rising by 21% y-o-y and OPM improving 152 bps y-o-y to 14.6%, leading to 33% y-o-y growth in PAT.

Overall revenue growth of 133% was led by strong performance in mobiles & EMS (235%), home appliances (22%) and Lightning products (29%) division. Operating profits were higher by 114% to Rs 426 crore, with OPM falling 33 bps.

Revenues reached Rs. 7,433 crore, rising by 6% y-o-y and by 57% q-o-q, primarily driven by higher volumes of primary sales.

Earnings significantly above estimates, grew by 23% y-o-y mainly driven by higher recoveries from written off accounts leading to higher RoA at 1.3%. Sustainable RoA trajectory remains at 1-1.1% for the bank.