Sharekhan Broker Research reports

For Q2FY2025, NLSL revenue stood at Rs. 397 crore, down 2% q-o-q/up 4% y-o-y in CC, missing our estimate of Rs. 417 crore.

Gabriel reported PAT at Rs. 52.7 crore (+12.2% y-o-y) against our estimate of Rs. 54 crore on 3% beat in revenue estimates and 50 bps y-o-y expansion in gross margin.

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 560, factoring in downwardly revised estimates, while it remains on a growth path.

Though credit cost rose sharply, AU SFB reported a sharp earnings beat led by strong fee income/ treasury gains and lower opex. The bank managed to report RoA/RoE at 1.7%/ 14.5% in Q2FY25.

Overall operating performance was in line however higher credit (2.1% versus 1.9% q-o-q) was a key dampener resulting in muted earnings growth.

Company reported $345.5 million in revenues, up 5.1% q-o-q in CC terms beating our estimates of $342 million. EBIT margins were flat q-o-q at 14% slightly beating our estimates of 13.9%. The company’s total TCVs stood at $529 million, up14% q-o-q/10%y-o-y.

We retain a Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 5,700, lowering our valuation multiple. Stock price correction of over 15% in past few days provide buying opportunity.

Strong growth continued across its proprietary and banca channel which resulted in APE growth of ~21% / y-o-y in Q2FY25 although APE growth lagged estimates.

Net earnings were almost in line due to a better performance by retail segment except MFI, higher other income, lower opex and credit cost. It also kept RoA steady.

Management has reduced its volume growth guidance for FY2025 to 9% y-o-y from 12% y-o-y, anticipating lower industry growth rate, while it continues to eye volume growth of 1.5x that of industry growth.