Downgrades

COAL reported a strong quarterly performance, with Q4FY25 EBITDA at Rs132.9bn (+2.5% vs Emkay; +17.3% vs consensus). The performance in Q4 profitability is on the back of better-than-expected e-auction premiums, lower employee cost, and lower reversal from stripping activity.

Bank of Baroda (BoB) reported healthy credit growth at 13% YoY. However, the sharp and constant decline in NIM (by 8bps QoQ) to 2.86% (due to lower loan yields) and the higher provisions were the upsets during 4Q.

Sonata posted a weak operating performance in International IT Services (IITS) in Q4. IITS revenue declined 7.2% QoQ CC, below our expectations. The decline was majorly attributed to higher-than-expected ramp down at a large TMT client, along with Quant seasonality.

With an upside potential of 6% from the CMP, we downgrade the stock from BUY to HOLD.

We change our rating on the stock from BUY to HOLD.

We maintain our BUY recommendation on the stock at reasonable valuations.