ICICI Securities Limited Broker Research reports

Eureka has revamped its servicing business strategy and we believe its benefits are surfacing. These include: (1) It has, now, four different servicing plans with options to buy servicing for one, two or three years, instead of just one plan across consumers. (2) Rolled out an App that provides alerts to consumers about servicing

As of Sep’24, Lemon Tree Hotels (LEMONTRE) has 10,318 operational keys across 112 hotels. The company has an aggressive room expansion plan for H2FY25–FY29 with an incremental 5,220 keys – should take overall operational keys to 15,538 by FY29–30E.

We attended the INOXGFL Group Vision Day held on 2 Dec’24; takeaways being the INOXGFL group’s foray into renewable power generation for the commercial and industrial (C&I) sector with an envisaged capacity of 3GW by FY27/FY28.

Solar Industries’ (SOIL) stock has been running sideways due to the delay in the award of the Pinaka order. However, we believe, Street is underestimating the potential of continuous export order inflows (OI) in defence. With an OI of INR 45bn so far in CY24,for a 3–5-year duration, we believe these orders alone potentially form an annual revenue accretion of INR 11–13bn.

Hatsun Agro’s ice cream business has strong potential to create value, in our view, as it has built multiple competitive advantages such as established brands (Arun and Ibaco), HAP Daily, three manufacturing units which help to cater to a large geography – this results in higher TAM at lower freight costs and storage units which help in reducing capex.

RBL Bank (RBL) has snapped its long-standing co-branded credit card ties with Bajaj Finance (BFL). The parting of ways is due to significant change in product synergies over time. As of Q2FY25, BFL formed ~65% of the o/s cards and 50-55% of receivables.

Bajaj Finance (BAF) ended its eight-year-long co-branded credit card partnership with RBL, as per exchange filing. We retain BUY with a TP of INR 8,500, valuing the standalone business at 4.7x FY26E BVPS while assigning INR 1,450/share towards housing subs.

Bharti’s EV/ EBITDA (Ind AS adj.) valuation at 11.3x FY26E appears to be at significant premium to APAC (excl. China) peers, which are trading at 7.1x (median); however, Bharti offers much higher EBITDA CAGR of 14.8% over the next two years vs APAC peers at just 4.5%.

Allied Blenders and Distillers (ABD) is well positioned to capture premiumisation trend in alco-beverages industry via new product launches in P&A segment (ICONiQ White Whisky to double its volume YoY in FY25; launches in premium and luxury segments to drive realisation growth).

It delivered 18% AUM CAGR between FY18–24 with AUM of INR 228bn, as of Sep’24, driven by an early entry into under-penetrated markets of UP, MP, Chhattisgarh and Jharkhand etc., complemented by its focus on diversification (no single state is contributing >15% of AUM) and one of the highest branch networks of 545; these have been key enablers for Aadhar.