Anand Rathi Broker Research reports

We recently met Sharda Cropchem’s Chairman and MD, Mr R V Bubna to gauge the business outlook. Management is confident of achieving double-digit revenue growth (guidance raised 26% y/y post Q3 results vs. 15-20% earlier) in FY25, particularly due to volumes and penetration into new markets.

Lagging the consensus and in line with ARe, Narayana Hrudayalaya’s Q3 results were decent, revenue/EBITDA/PAT rising 14%/10%/3% y/y. Cayman reported Rs2.8bn/Rs1.2bn revenue/EBITDA, up 14/2% y/y.

A schedule ‘A’ Miniratna Category-I company, MOIL is the largest manganese ore producer in India, with market shares at ~20% domestically and ~2.2% globally.

On a consolidated basis, SEL topline increased by 14.8% YoY and remained flat QoQ to Rs8,315 mn. EBITDA increased by 11.2% YoY and 54% QoQ to Rs970 mn. EBITDA margin remained flat YoY and grew by 411bps QoQ to 11.7%.

In line with ARe, Dollar Industries' Q3 sales grew 14.8% y/y. The South brought ~8% to 9M FY25 revenue; plans are to hike this to 13-15% over 2-3 years. At end-Q3, the company had 17 EBOs and plans to increase this to ~125 by FY26. Force NXT (premium segment) continues to do well, recording 13.8%/23.3% value/volume growth y/y.

Hindalco’s 600k-tonne strategic expansion in Bay Minette is on track to be completed in H2 CY26. The recently commissioned 250k-tonne Guthrie facility continues to ramp up automotive sheet ingot casting and the 100ktonne recycling centre in Ulsan (South Korea) has been commissioned.

Greenpanel Industries’ Q3 revenue/gross profit/EBITDA/PAT fell 6.8%/28%/71/69.3% y/y to Rs3.6bn/1.6bn/173m/85m. The poor showing stemmed from export volumes falling (due to unprofitable orders) while domestic volumes were flat.

Surpassing our Rs11.3bn estimate on more-than-expected revenue and less-than-anticipated other expenses, Ashok Leyland’s Q3 EBITDA grew 9% y/y to Rs12.1bn.

Kewal Kiran’s Q3 revenue grew 27.5% y/y on Kraus’ acquisition. Standalone sales growth was muted at 0.8% y/y. Some of the revenue loss was on Lawman brand’s discontinuation from MBO channel.

Kajaria Ceramics’ Q3 revenue rose only 1% y/y to Rs 11.6bn. EBITDA/PAT fell 16.8%/25.4% y/y to Rs1.5bn/Rs777m, below ARe’s Rs1.9bn/Rs 1.2bn.

Broadly in line with our estimate, Sansera’s Q3 consolidated EBITDA grew 5% y/y to Rs1.27bn. We expect its outperformance to continue, thanks to greater focus on xEV (drivetrain), tech-agnostic (aluminium forgings) and non-auto (aerospace, Defence, semiconductor) components.

Telangana (15% of UB’s revenue) announced a 15% price hike for beer, marking the first hike since FY20. This and strong seasonal demand (on a lower base), cost-saving steps and consistent capability building efforts augur well for the future.

Escorts’ Q3 PBT (incl. discontinued operations) grew 7% y/y to Rs4.2bn, below ARe of Rs4.4bn mainly due to less-than-expected agri machinery margins.

Broadly in line with the consensus and ARe, Rainbow Children’s Medicare reported reasonable Q3 figures with revenue/EBITDA/PAT up 19%/14%/11% y/y.

Aided by higher offtake overall (up 8.2% y/y to 3.04m sheets) and better blended realisations (up 9.6% y/y to Rs822/sheet), Stylam’s Q3 revenue stepped up 18.6% y/y to Rs2.5bn.

In line with our estimates and the consensus, Jupiter Lifeline Hospital reported healthy Q3 figures, with revenue/EBITDA/PAT up 18%/21%/20% y/y.

Nilkamal’s Q3 revenue grew 6.3% y/y to Rs8.5bn. Input-cost tailwinds helped the gross margin expand 126bps y/y to 43.3%. Higher employee expenses and other operating expenses pulled EBITDA down 12.9% y/y to Rs634m. PAT was down a significant 26.4%.

Greenply’s Q3 revenue/gross profit/EBITDA grew 5.6/5.8/7.2% y/y to Rs6.2bn/2.5bn/540m. Adj. PAT was up 26.5% y/y to Rs244m. Despite higher revenue, input cost pressures restricted the gross margin to 40.1%.

Broadly in line with consensus and our estimates, Dhanuka Agritech reported a decent set of Q3 figures. Revenue/EBITDA/PAT grew 10%/22%/21% y/y.

As market leader, Star Cement’s Q3 volume growth outstripped northeastern demand growth, but its operational performance was hit by the delayed Meghalaya clinker stabilisation, higher maintenance shutdown cost, higher freight on a highway being constructed, etc.