ICICI Securities Limited Broker Research reports

In Q3FY25, Somany Ceramics (SOMC) reported consol. revenue growth of 5.3% YoY with tile volume growing 4.5% YoY (5-year CAGR of 5.1%) while tile realisation declined 0.9% YoY (flat QoQ).

The Ministry of Defence has inked a contract with Economic Explosive Limited (EEL)- 100% subsidiary of Solar Industries (SOIL) and Munitions India Limited (MIL) for procurement of Area Denial Munition (ADM) Type-1 (DPICM) and High Explosive Pre Fragmented (HEPF) Mk-1 (Enhanced) rockets, respectively, for Pinaka Multiple Launch Rocket System (MLRS) at a total cost of INR 101.4bn.

PVR Inox’s ad revenue grew ~36% QoQ to ~INR 1.48bn (highest quarterly ad-income post Covid) in Q3FY25, which in our view is an encouraging development.

Mishra Dhatu Nigam (MIDHANI) reported an impressive Q3FY25 performance. Lower cost and higher recycling resulted in EBITDA growth of 46% YoY despite 6% YoY decline in revenue.

Lemon Tree Hotels (LEMONTRE) reported Q3FY25 consolidated revenue of INR 3.6bn (up 23% YoY), in line with I-Sec’s estimate as portfolio ARRs (including Mumbai Aurika) grew 7% YoY, while occupancy stood at 74.2%, up 826bps YoY.

Abbott India’s (Abbott) impressive revenue growth of 12.3% YoY in Q3FY25 was ahead of our expectation. As per IQVIA, this may be driven by key brands of Novo Nordisk like Rybelsus and Ryzodeg and owned brands like Duphalac, Udiliv and Thyronorm.

Happiest Minds (HAPPSTMNDS) has once again revised down its FY25 revenue target to 27-28% vs 30-35% YoY CC earlier. We cut revenue by 7%/9% for FY26-27E, factoring in lower organic growth momentum and softness in edutech.

Page Industries (PAGE) had underwhelming growth in revenue (+7% YoY) and volume (5% YoY) amidst demand challenges, leading to sequential deceleration, while channel inventory has largely normalised.

Zydus Lifesciences’ (Zydus) Q3FY25 revenue was in line with our expectations, but lower sales of gRevlimid and gAsacol led to a miss in earnings.

Info Edge’s recruitment business revenue grew 12.1% YoY as billings grew 15.2% YoY, mostly led by increasing number of unique customers (up ~10%YoY) in Q3FY25.