New Research Reports

Quarterly Update Q1FY26

Recommend a BUY rating on the stock with a TP of Rs 870/share, implying an upside of 10% from the CMP.

Event Update: Protean eGov Technologies Limited has received a work order from the Unique Identification Authority of India (UIDAI), Government of India, to act as a service provider for establishing and operating District Level Aadhaar Seva Kendras (ASK) across 188 districts in the country. The contract, valued at ~1,160 cr (exclusive of taxes), covers a period of six years and involves delivering Aadhaar enrolment, various kind of updates (demographic, biometric) and related services through both appointment and walk-in modes. ASK work order improves revenue visibility esp. post PAN 2.0 miss: This 1,160...

The proposed merger of Dr. Agarwal Eye Hospital (AEHL) with Dr. Agarwal Healthcare (AHCL) would consolidate the businesses of AHCL and AEHL into a single entity.

Innovation and premiumization success demand a premium

VA Tech Wabag Limited (Va Tech) reported a strong performance during Q1FY2026 with sales growth of 17.2% y-o-y to Rs. 734 crore.

Q1FY26 performance: ACE's performance in Q1FY26 a mixed set, Revenue declined by 11% YoY (-32% QoQ) to 652 crore as the revenue of cranes, construction equipment & material handling segment (93% of total revenue) fell by 12.4% YoY (34% QoQ). Agri equipment revenue (7% of total) stood at 46.5 crore (+8.3% YoY, 4% QoQ). EBIDTA margin improved to 14.2% (+80 bps YoY, -280 bps QoQ), mainly led by better product mix. Subsequently, EBIDTA declined by 6% YoY (-43% QoQ) to 92 crore. However, other income grew by 85% to 51 crore resulting in PAT growth...

Enhanced the EBIDTA margin guidance to ~17% from earlier 15%+ for FY28E; Premium Mix, backward integration and UK FTA benefits will drive margins: ABDL is targeting mid-teens revenue growth driven by double digit volume growth in prestige & above (P&A) category. It aims the P&A segment mix to improve to 50% by FY28 from 46% in Q1FY26. It has invested ~Rs.450cr on capex to set up backward integration facilities. The PET Bottle manufacturing is expected to cater to 70-75% of current annual requirement while Single malt distilleries and ENA shall help to become self-sufficient, improving its supply chain and reducing its...

ABDL has set ambitious FY28 targets of mid-teens revenue growth with double-digit volume growth, P&A share at 50%, gross margin of 45%+ and EBITDA margin of ~17%; and improve ROCE to 23–25%.

We have revised our FY26E/FY27E EPS estimates by -22.3%/-17.0%, as we factor in stronger momentum in revenue growth, weaker EBIT margins led by higher processing charges, higher other income on idle reserves and increase in outstanding shares on account of right issue.