Sharekhan Broker Research reports

Eicher reported a mixed performance in Q2, as it missed EBITDA margin estimates; bottom line came close to estimates on lower tax providing and higher income from VECV.

Balrampur Chini Mills’ (BCML’s) Q2FY2025 numbers were affected by government restrictions in distillery operations and lower crushing volumes. Revenues fell by 16% y-o-y and EBIDTA fell by 70% y-o-y (EBIDTA margins decreased to 3.8%).

Topline rose 17% y-o-y and 5% q-o-q, with operating Profit of Rs. 243 crore and adjusted
PAT of Rs. 112 Crore surpassing our estimates, attributed to margin enhancements in
LSC and POC.

PAT rose 43% y-o-y to Rs. 92 crore, supported by strong revenue growth of 29% y-o-y and good OPM of 22.2%. OPM improved by 306 bps led by lower other expenses.

We retain a BUY on Ramco with a revised PT of Rs. 1,060, marginally increasing our valuation multiple considering its strong cost competitiveness and future capacity additions at minimal capex requirements.

We retain a Buy rating on Shree Cement with a revised PT of Rs. 28,800, factoring a marginal downward revision in operational profitability led by lower volume growth than earlier envisaged.

Jyothy Labs Limited’s (JLL’s) Q2FY2025 performance was muted with revenue and PAT remaining flat y-o-y. OPM at 18.9% rose by 38 bps y-o-y.

We retain BUY on JKL with a revised PT of Rs. 900, factoring downwardly revised estimates partly offset by roll forward of valuation to FY2027E earnings.

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates.

We retain a Buy rating on Gateway Distriparks Limited (GDL) with a revised PT of Rs. 105, factoring downwardly revised estimates and expecting a growth revival, led by rise in EXIM growth.