chronic therapies and opens up many newer therapeutic areas. The deal also adds JBCP's CDMO vertical, offering diversification and growth optionality. The acquisition is likely to be debt-funded requiring Rs 122bn to fund acquisition upfront. We see JBCP current OPM of 2728% to scale to 31-32% (similar to current TRP margins) via sourcing efficiencies, cost rationalization, and pricing actions on keys brands. Historically TRP have managed to integrate...
Given its lean cost structure and partnership with local doctors/ leadership outside Andhra Pradesh (AP) and Telangana, the management remains confident of achieving faster breakeven and +25% OPM across Maharashtra,...
Dealers expect prices to decline further in Jul'25 as the monsoon picks up. However, prices remain strong compared to FY25 and YoY prices are up significantly in Southern & Eastern regions. We interacted with cement dealers across regions in India to assess the demand and pricing scenario in Jun'25. Our discussions indicate a mixed demand environment across markets. While heatwaves continued to impact...
Cement demand remains muted especially in the key Eastern region where demand is struggling over last 5 quarters. Despite regime change in Odisha and upcoming elections in West Bengal, demand remained muted in last few months. East region prices improved in Apr/May along with other regions by ~Rs20/bag and got cut by Rs5 in June due to early monsoon however current...
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...
