since Apr'25. We could see a credit upcycle from FY27E suggesting higher than expected loan growth. Sensitivity analysis indicates that if loan growth for FY27E is 210bps higher at 14.7% YoY, aggregate core PAT would be upgraded by 3.6%; sector would re-rate and multiples/TP could increase by 5.0-11.0%. However, in a credit upcycle, valuation discount of other banks to sector leaders like ICICB/HDFCB (6-7% upgrade) would narrow suggesting higher upgrades. From an alpha generation perspective, we would prefer players like...
Accenture's (ACN: NYSE) performance in Q3 came above consensus estimates and at top end of the guidance despite the underlying challenges. The growth was driven by managed services, attributed to FS & Americas, a positive read through for Indian IT companies. However, revenue guidance for Q4 (USD 1717.6 bn) implies softness on account of caution among enterprise clients along with Federal mandates to prioritize spending. We believe the degree of intensity is more noticeable in the former than the latter, as the bookings growth on outsourcing decelerated further (down 10% YoY), while Public Service and Americas are growing at Consol business growth. For the Indian...
On the positive side, higher gold prices may hinder expansion plans for regional and local players due to elevated inventory costs. Investor interest in franchisee operations may also weaken in the short to medium term. Given all the dynamics, we believe TTAN is well-positioned for decent growth in the near to medium term, supported by a higher number of wedding days and its strategic expansion into Tier-2 and Tier-3 cities. Rising gold prices due to geopolitical uncertainty remain a key risk to our hypothesis. We estimate sales of 17%, EBIDTA growth of 25% and PAT growth of 25.6% for...
improvement is more significant in urban catchment (Metro & Tier-1) vs Tier-2 & Tier-3 cities. Jubilant foodworks is witnessing a significant demand uptick continuing the momentum of Q3 & Q4 driven by 1) Consumer finding dominos to be giving more value for money vs other standalone stores 2) lower competitive intensity as standalone stores see price increase (due to increasing rentals) with minimal change in quality and experience & 3) Continuous menu innovation and elevated store level experience. Westlife Foodworld is showing gradual improvement in demand QoQ; however,...
navigate margin pressures in a competitive environment. The management also shared insights on domestic demand sustainability, the impact of reduction in MDF imports, and GREENP's roadmap to drive volume growth...
We recently interacted with an expert in the Indian ceramic industry, who provided deep insights into the current landscape of the tile industry in Morbi. The discussion covered critical aspects such as gas pricing trends, export and...
Jubilant Ingrevia is one of the leading players in India supplying chemical intermediates to agrochemical innovators for almost 3 decades. The company is now transitioning to become a CDMO player and has already signed 2 contracts for agro CDMO, one of which is worth USD300mn and will start contributing to revenue from Q4FY26. As highlighted in our previous report, 7 more molecules with pyridine chemistry are expected to go off-patent by 2028, thus making Jubilant a good fit to manufacture them. However, unlike...
companies. The project companies saw better execution and increasing Defence companies outperformed on the back better execution amid push for defence indigenization. Cumulative order intake growth of 10.2% to ~Rs1.7trn...
We attended the annual investor call of KEC International (KECI IN), where the Change in Estimates | Target | Reco management shared key updates on the company's FY25 financial performance and outlined growth opportunities across both domestic and...
FY25 order intake was Rs82.1bn with domestic consultancy/overseas consultancy/turnkey mix of 43%/13%/44%. We cut our FY26/27E EPS estimates by -7.0%/-5.5%, factoring in lower dividends from equity investments leading to lower other income and downgrade our rating from Buy' to Accumulate' due to sharp run up in the stock price. Engineers India (EIL) reported a strong quarter with 25.5% YoY...
