Sharekhan Broker Research reports

We maintain BUY rating with unchanged PT of Rs 7,500. At the CMP, the stock trades at 35.6/29.3/24.5x its FY25/26/27E EPS.

Q2FY25 Revenue/EBITDA of Rs. 292 crore/Rs. 79 crore fell 16%/18% y-o-y and was lagging our estimates as the decline in sales volume (down 18% y-o-y and 34% q-o-q) affected the performance.

Revenue of Rs. 4,807 crore (+19.7%/-10.6% y-o-y/q-o-q) was inline with estimates. Iron ore sales of 9.7 mt grew by only +1.8%/-3.3% y-o-y/q-o-q. Realization of Rs. Rs. 4,935/tonne grew +17.7%/-7.6% y-o-y/q-o-q.

PAT stood at Rs. 99 crore (down 40%/6% y-o-y/q-o-q) was 23% below our estimate due to monsoon led delayed dispatches and weakness in pricing.

Q2 numbers were a mixed bag with revenues rising 10.5%, but OPM declining to 8.1% from 12.3%. The margins were impacted by lower and volatile copper prices, high-cost inventory and channel destocking.

Consolidated revenues are set to grow by 2x to Rs. 1,5000 crore by 2030; Like-for-like (LFL) RevPar
to grow at CAGR of 8%, management income to clock a 15% CAGR and Re-imagined businesses
contribution to increase to 25% growing at 30% CAGR over the next five years.

The quarter’s revenue reached Rs. 11,090 crore, marking a 9% increase y-o-y and a 22% q-o-q rise.

PNB reported 145% y-o-y earnings growth aided by ~92% y-o-y decline in provisions and ~10% y-o-y
growth in operating profit resulting in RoA/RoE at 1.0%/ 14.7%.

CESC’s consolidated PAT increased by 1.4% y-o-y to Rs. 353 crore with good performance in Haldia and Dhariwal but it was dragged down by the standalone business and Malegaon DF.

Revenue amounted to Rs. 5,237 crore, reflecting a 20% y-o-y increase but a 16% q-o-q decline,
primarily driven by reduced performance in the Indian consumer wellness segment, US
formulations and API business.