Buy

BPCL’s Q4FY25 performance was much better than expected. SA EBITDA/APAT was down 15%/18% YoY to Rs78.1/45.5bn, albeit at a significant beat, driven by reported GRM of USD9.2/bbl (Emkay: USD6/bbl).

We recommend BUY with TP of Rs 351, which implies an upside of 10% from the current market price (CMP).

Exceeding estimates, Eternal’s Q4 saw strong execution in Blinkit, with the GOV growing ~20.8% q/q, 134% y/y, and the contribution margin expanding ~10bps q/q, which is encouraging, given heightened competition and aggressive dark store addition (~294 added; ~40% of the total 1,301 stores added in the last two quarters).

Q4 numbers were a mixed bag. NII at Rs. 42,775 crore (in line) grew by 3% y-o-y/ 3% q-o-q. NIMs were stable, declined marginally by 1 bps q-o-q to 3.0% although outlook on NIMs remains negative. Core fee income growth was healthy at 13% y-o-y/ 36% q-o-q.

QoQ at 33.9bps. Equity performance in 1-yr bucket has been consistently improving since Mar'24, and 59% of equity AUM is in quartile 1 & 2 as of Mar'25. A dilution of 1-2bps is expected in yields which will be cushioned by commission rationalization carried out in Q4FY25. Staff cost is guided to grow by 3%/5% at the standalone/consol level; we envisage other opex to grow at an 11% CAGR...

FB reported a soft quarter as core PPoP at Rs12.6bn missed PLe by 11% driven by 4.2%/3.9% miss on NII/opex. However, lower provisions (led by corporate recovery) cushioned core PAT which met PLe at Rs8.7bn. In-line with its stated strategy, CA accretion was healthy QoQ. NIM may moderate as 50% of loans are EBLR linked with a T+1 reset. However, it may be cushioned by 1) shift to higher yielding segments 2) change in EBLR reset dates for new disbursals to T+90 and 3) growing fixed rate loans at a higher pace. Opex has been a drag;...

Initiating Coverage Report