Buy

We are upgrading ITC from Accumulate to BUY as we expect current margin/growth pressures to subside post 1H26. ITC is suffering margin pressure in cigarettes (high leaf tobacco prices and volume focused strategy), Paper (High wood prices and dumping) and FMCG (Tepid volumes, high input costs and hit in stationary business). However, we expect the scenario to change as leaf tobacco prices have started softening in current season, new wood supplies, integration of century paper and bottomed out margins (~40%...

alumina NSR improved 83% YoY to USD670/t, while that for metal grew 22% YoY to USD2,973/t on strong LME. EBITDA grew robust 149% YoY on favorable pricing and lean cost structure supported by captive coal. Mgmt. guided for...

increased sharply over the last 3 years (29% CAGR over FY22-25). Our FY2627E EBITDA estimate broadly unchanged. We estimate 24% EBITDA CAGR over FY25-27E aided by scale-up in margins, healthy ARPOB and bed additions. ASTER DM's board has recently approved merger with Quality care (QCIL) that...

Astral Ltd (ASTRA) has reported soft volume growth of 1.3% in the plastic pipe segment (as expected) due to weak demand scenario and delays in ADD on PVC resin prices. However, its plumbing EBITDA margin remain flat YoY at 20.4%, with EBITDA per kg for the plastic pipe segment at Rs37 even after inventory loss in Q4FY25. This was considered healthy given the current challenging demand environment, largely due to an increase in the VAP mix and cost rationalization efforts. With the upward reversal in PVC resin prices,...

Fortis Healthcare's (FORH) Q4FY25 EBITDA at Rs4.36bn; up 14% YoY was in line with our estimates. Though hospital margins improved by 170bps/190bps YoY in FY24/FY25, we see further scope for improvement aided by 1) improving case and payor mix, 2) cost rationalization initiatives including divestment of Richmond unit in Bangalore, ramp up of Manesar unit and 3) new brownfield bed additions. Fortis consolidated 89.2% stake in Agilus in Jan'25. We expect...

We increase our FY26E/FY27E PAT estimates by 13%/10% as we fine tune our yield and fuel CASK assumptions. INDIGO reported better than expected performance with FX adjusted EBITDAR margin of 30.8% (PLe 28.5%) led by 1) 2.2% rise in yield to Rs5.32 aided by Maha Kumbh and 2) 6.6% fall in fuel CASK to Rs1.60 amid benign ATF prices. Notwithstanding near-term challenges amid the ongoing geo-political tensions, ASKM growth guidance of mid-teens for 1QFY26E is encouraging. Further, we expect the overall pricing environment to remain stable with yields of Rs5.1 over next 2 years as the aviation market is...

Dwarka unit achieved break-even vs loss of Rs50mn in Q3. YoY to Rs 6.32bn; in line with our estimates. The company showed phenomenal additions. We expect pick-up in the growth momentum given 1) strong expansion plans (+3500 additional beds over FY24-27E), 2) improving payor mix and 3) Bolt on acquisitions like recently added in Lucknow, Nagpur and...

Emami’s Q4FY25 performance was steady with consolidated revenues growing by 8.1% y-o-y to Rs. 963 crore, OPM declining 89 bps y-o-y to 22.8% and adjusted PAT rising by 9.2% y-o-y to Rs. 179 crore.

Our initial estimates factored in spread compression in FY25 vs. FY24. While, in H1FY25, this played out more than we expected, there was a big recovery in H2.