Cera Sanitaryware Ltd.'s (Cera) Q1FY26 performance was in-line with our estimate on net sales front, while margins disappointed. The industry is facing subdued market condition from the last six to seven quarters. Consequently, there has been no price increase in the sector for some time, especially in Sanitary ware. However, the management guided that the long-term outlook is expected to stay strong, supported by continued formalization of the sector, rising aspiration of the consumers, and supporting policy initiatives such as urban redevelopment, housing schemes, and sanitation infrastructure. The...
From a technical perspective, the stock has formed a solid base around its 200-week simple moving average, indicating that a short-term bottom is in place. Additionally, the Relative Strength Index (RSI) on the weekly chart has broken out of its oversold zone, further reinforcing the price strength. Moreover, both short-term and medium-term moving averages are positively aligned and trending...
Finolex Industries' (FIL) Q1FY26 result was below our estimates on key parameters. The company experienced modest growth in pipes and fittings volumes, despite a weak overall demand scenario, however, operating performance was muted mainly due to weaker realization on account of volatility in PVC prices. The management guided that the demand has shown high single-digit growth as of early August 2025. The company expects this high single-digit trend to continue and is hopeful of crossing double-digit growth for FY26. Net sales declined by 8.5% YoY to Rs10.4bn, while EBITDA came in at...
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...
