Upgrades

We expect Natco Pharma to witness a moderation in revenue due to increased competition in Revlimid. However, the launch of generic Pomalyst and ROW opportunities are likely to partially offset this decline. Management remains focused on long-term growth, with domestic momentum expected to improve through partnerships for generic semaglutide. Additionally, the company is evaluating two potential acquisitions to further strengthen its base business. Accordingly, we...

We have liked KFIN Technologies (KFIN) for its business growth potential based on its core Indian MF RTA operations, alongside likely traction in international business (buoyed by acquisitions/partnerships), alternatives, and corporate registry.

Unlike several industries that rely heavily on global suppliers for chemicals, HCP sources most chemicals domestically for captive use. Chemicals/allied agents i.e., Sodium Isopropyl Xanthate, Somfroth and Flocculants are largely procured locally, which limits direct exposure to global trade flows.

We analyzed narration versus actual outcomes and financial performance across CDMO peers, highlighting an uneven recovery, with some companies facing guidance resets due to program delays, destocking, and slower commercial conversions.

CreditAccess Grameen (CREDAG) is emerging from the recent MFI stress phase with improving operating momentum, resilient portfolio retention, and a structurally stronger business mix.

KPIL reported ~Rs57.8bn revenue in Q3FY26 (vs. our estimate of ~Rs56.6bn), led by strong momentum in T&D, B&F, Oil & Gas and Urban Infra.

Revenue grew 6% YoY, and sales volumes increased by 4% YoY in Q3FY26, EBITDA remained flat on a YoY basis, while EBITDA per ton declined ~2.9%, largely due to a 4% increase in raw material costs, including the impact of higher...

Narayana Hrudayalaya (NARH) reported strong EBITDA of Rs4.4bn (up 44% YoY) adjusted for one time cost, 7% above our estimates driven by robust performance across India and Cayman operations along with consolidation of UK subsidiary. The Cayman business reported profitability of Rs1.88bn (up 42% YoY) adj for CHIL losses. India business reported healthy EBITDA adjusted for NHIC losses, up ~24% YoY. The management reiterated its aggressive capex...

We value the company at 5.5x FY28E Pre-sales/EBITDA and discount the rentals using a 8% Cap rate, and maintain our BUY recommendation on the stock with a TP of Rs 1,315/share, implying an upside of 22% from the CMP.

Q3FY26- Strong performance across all parameters- Navin Fluorine reported revenues of 892 crore, up 47% YoY. Segment wise, Speciality Chemicals (40% of the revenues) reported a growth of 60%, HPP (46% of the revenues) reported a growth of 35%, CDMO (14% of the revenues) grew 61% YoY on the back strong order book visibility. GPM stood at 58.8%, up ~220 bps YoY. EBITDA for the quarter stood at 308 crore, up 109% YoY, translating into margins of 34.5%, up ~1000 bps YoY. PAT for the quarter stood at 185.4 crore, up 122% YoY....

We find the future prospects promising for Manappuram with a new strategic direction for the business, which entails new management, lower MFI mix, better asset quality management and high growth/low yield in core gold business.

Bandhan has endured a long and painful asset quality cycle over the past many years. After delivering a stellar ~4% average RoA over FY17-20, the profitability has declined sharply, with the average RoA shrinking to 1% over the past five years.

Navin Fluorine International (NFIL) delivered a solid performance yet again in the quarter. Revenue for HPP, Specialty Chemicals and CDMO grew by 35%,60% and 61% respectively on YoY basis. Margins increased by ~ 10 percentage points YoY to ~34.5% majorly owing to strong performance of the specialty chemicals segment and operating leverage led benefits. All the 3 business verticals of HPP, Specialty Chemicals and CDMO have strong revenue visibility for FY26 and FY27. The Specialty chemicals segment clocked in highest ever quarterly revenue led by increasing utilization levels in MPP-1, MPP-2 and the Nectar plant. We fine...

Amber Enterprises (AMBER)’s 3Q result was ahead of our estimates, driven by a betterthan-expected performance in consumer durable and electronics segments. The RAC industry is witnessing demand revival sequentially, and the company is also expecting growth in the non-RAC segment.

Gross margin fell by 338 bps YoY to 18.2%, primarily due to the adoption of SAP, which reclassified certain costs as raw materials instead of other expenses. Meanwhile, the EBITDA margin slipped slightly by 53 bps YoY...

Q3 Revenue/ EBITDA were 22%/ 42% ahead of estimates, driven by strong growth in Electronics (+79% YoY) and CD (+30% YoY)

Overall volumes grew 5% YoY. Subdued realisations (+1% YoY) on weak East pricing, kept revenue growth modest at 6% YoY

NFIL reported robust quarterly revenue of Rs8.9bn, up 47.2% YoY and 17.7% QoQ, driven by strong performance across the 3 business segments. The HighPerformance Products (HPP) segment grew 35% YoY, supported by robust demand, and improved realizations and volumes for refrigerants, with both R32 plants operating at full capacity. The Specialty Chemicals segment posted 60% YoY increase, aided by meaningful contributions from the fluoro-specialty plant commissioned in Dec'24. Strong purchase order pipeline is already in place for Q4 and beyond. The CDMO segment delivered 61% YoY growth, with 94% of revenue derived from exports. The segment is backed by a healthy order...

The company operates in key value chains such as Nitro Chloro Benzene, Dichloro Benzene, Phenylenediamines, Nitro Toluene among others. The company caters to end use industries such as Energy (octane booster), Agrochem, Dyes, Pharma, Polymers among others. x The company has incurred a significant capex (~ 8000 crore) over the last 6-7 years to expand product offerings and derisking. Its aspirational...