JK Paper Ltd.'s (JK Paper) Q1FY26 result was broadly in-line with estimates on net sales and EBITDA front, while net profit was below our forecast. The Company's core business in Paper and Paper Board continued to face headwinds from cheap imports resulting in depressed sales realization and ongoing high domestic wood prices weighed on operating margin. Despite this, JK Paper improved its profits on a sequential basis. The management believes that packaging conversion business is amongst the fastest growing segments in the Indian Paper and Packaging industry driven by growth in end use industries....
Overall, the net equity flow trend in July highlights a significant pullback by FPIs from sectors that were previously favorable, with a total net outflow of Rs177.41bn, bringing the year-to-date net flows to a deficit of Rs956.39bn....
Safari's Q1FY26 performance exceeded our expectations. Sales grew 17% YoY to Rs5.3bn, driven by strong volume growth (up 17% YoY), while realizations remained flat YoY - indicating easing price competition. As a result, gross margin expanded by 128bps YoY to 45.8% but declined 344bps QoQ on higher share of low margin products. EBITDA grew by 20% YoY to Rs793mn, with EBITDA margin expanding by 38bps YoY to 15.0%, supported by higher gross margins despite higher A&P spends (7% vs. 5.5% in Q1FY24). PAT increased by 14% YoY to Rs505mn. We expect revenue/EBITDA/PAT to grow at a CAGR of 14%/26%/29%...
The Monetary Policy Committee (MPC) maintained the policy repo rate at 5.50% and continued with its neutral stance. Having reduced the policy rate by 100 bps since February 2025, the MPC chose to wait for further transmission of these front-loaded cuts to credit markets and the broader economy. A CRR cut announced in the previous policy will be implemented in a staggered manner starting September, aimed at supporting liquidity. Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) remains unchanged at 5.25%, while the marginal standing facility (MSF) rate and the Bank Rate remain at 5.75%. The financial position of Scheduled Commercial Banks (SCBs) and NBFCs remain healthy, supported...
In our monthly Hotels update we have summarized key events of the domestic hotel industry, new hotels signing/addition by key players during the month and pricing trend of key cities for July, 2025. We have analyzed pricing of 171 hotels with ~33,000 keys across 8 cities to understand the trend over last 24 months (Exhibit 1-8). The industry witnessed improvement in ADR on YoY as well as MoM in key selected markets. After decline in ADR in earlier months (due to seasonality), the trend reversal in ADR is on expected line. We anticipate further strengthening of ADR aided by festive season and long weekends in upcoming months. We remain positive on domestic...
SUF AUM growth remains stable at 17% YoY vs 17% YoY (FY25) led by lower disbursements. Disbursements grew by 6% YoY (up 6% QoQ) during Q1FY26. Asset quality deteriorated however, continues to remain best-in-class; collections stood at 91%. NIMs (calculated) have improved (up 46bps YoY) led by increase in yields which resulted in strong NII growth (up 28% YoY). PPoP grew by 51% YoY led by higher non-interest income (up 65% YoY). PAT grew by 39% YoY led by higher provisions (up 114% YoY). Thus, RoA improved to 2.9% vs 2.85% QoQ. We have largely retained the estimates and upgraded the stock to BUY rating with TP of Rs.5,530...
Shree Cement (SRCM) reported a robust performance in Q1FY26 with EBITDA growing by 34% YoY to Rs12bn, driven by effective cost control and pricing strategy. Net profit almost doubled to Rs6,185mn, up 95% QoQ, underlining the company's margin improvement and operational leverage. The EBITDA margin expanded by nearly 590 bps YoY to 24.8%, and cash profit also saw a healthy 24% YoY rise to Rs12mn. Total sales volume for the Q1 2026 stood at 9mn tonnes. The contribution of premium cement products in trade sales improved to 17.7%, up from 15.6% QoQ. Given the improvement in cement prices, we...
Neogen Chemicals (Neogen) delivered a fair financial performance in the quarter. The performance was led by higher volumes across various product categories. Revenue for Organic chemicals segment grew by 16% YoY while the revenue for the inorganic chemicals segment declined by 42% YoY. We are cognizant of the slowdown in the overall EV ramp up and delays in customer approval in light of the global tariff uncertainties. However we continue to remain positive on the battery chemicals theme as growth from EVs and Battery Energy Storage Systems (BESS) will necessitate the creation of a domestic supply...
CIFC's AUM growth slow down to 24% YoY vs 27% YoY led by flat YoY growth in disbursements. Management maintained guidance for 20-25% AUM growth led by 15-20% disbursement growth for longer term. NIM improved by 10bps QoQ led by lower cost of funds. We expect benefit of lower interest rate environment on account of fixed rate VF book. Asset quality deteriorated with GS3 at 3.16% vs 2.81%. NII grew by 26% YoY led by improvement in NIMs YoY; however, PPoP grew by 30% YoY led by increase in other income (up 94% YoY). PAT grew by 21% YoY led by higher provisions (up 52% YoY). We have largely maintained our...
