ICICI Securities Limited Broker Research reports

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.

LTF launched its beta version for project Cyclops in Jun’24, which is an AI driven multi-dimensional underwriting engine. It uses alternate data sources, namely trust signals, geo signals and account aggregator data apart from traditional bureau data from multiple bureaus.

Titan's domestic jewellery business revenue growth had a strong revival (~25% YoY; LFL: 15% YoY) driven by improved industry demand conditions.

Paint industry has likely declined by ~2% in Q2FY25. Considering industry slowdown and steep increase in competitive pressures, we believe Berger reported moderate results with volume growth of 3.6% YoY. While EBITDA margin contracted 147bps YoY to 15.6% in Q2FY25.

ABB India (ABB) reported muted revenue of INR 29bn, +5% YoY compared to double-digit growth reported in last 14 quarters. Note that revenues grew by 19%, 24%, 22% and 20% in CY21, CY22, CY23 and H1CY24 respectively.

Dr. Reddy’s Laboratories’ (DRL) Q2FY25 performance, adjusted for acquisition-related expenses (INR 561mn) and impairment charge of gNuvaring (INR 924mn), was ahead of our expectations

Hatsun reported gross/EBITDA margin expansion (+49bps/15bps YoY) in spite of Q2FY24’s relatively high base.

Blue Jet Healthcare’s (BlueJet) Q2FY25 shows a ramp-up in contrast media as ABA HCL volumes normalise; the segment should see acceleration in growth with the commissioning of intermediate for NCE MRI molecule and iodinated.