Downgrades

We maintain our HOLD rating on the stock.

We recommend a BUY on the stock for a target price of Rs 1,166/ share implying an upside of 10% from CMP.

PSYS revenue for Q4FY25 came in at INR 32,421 Mn, up 25.2% YoY (+5.9% QoQ), in line with our estimates (+1.2%). EBIT grew to INR 5,053 Mn, up 34.9% YoY (+10.9% QoQ), beating our estimates, due to lower-than-anticipated employee expense, partially offset by higher other expenses.

Revenue increased by 39.6% YoY (+13.0% QoQ) to INR 4,688 Mn, driven by strong volume growth. EBITDA grew by 54.3% YoY (+19.6% QoQ) to INR 801 Mn, on the back of robust revenue growth and strong margin expansion; EBITDA margin stood at 17.1% (+163bps YoY/ +95bps QoQ).

SBI Cards (SBIC) reported a disappointing FY25 with a 20% decline in PAT driven by higher credit cost (9%) and low NIMs (10.8%). While management commentary and execution have ratified possible peaking of both credit cost and cost of funds (CoF), the recovery trajectory remains to be monitored.

Poonawalla Fincorp (Poonawalla) reported mixed Q4FY25 earnings with PAT at INR 0.6bn or 76bps RoA, wherein opex continued to be elevated. However, there was some respite on credit cost front with sequential decline.

Maruti Suzuki’s Q4 standalone EBITDA declined 9% y/y to Rs42.6bn, below our estimated Rs49.3bn. Domestic volumes would clock a 5% CAGR over FY25-27 due to higher income levels (income-tax cuts), a rebound in first-time buyers, rural demand, launches and lower finance costs.

Dr Lal PathLabs’ (Dr Lal) Q4FY25 results were slightly better than our expectation. Outperformance was driven by higher sample volumes (up 9.5% YoY) and realisation improvement.

We visited Gabriel’s plant and attended its management meet on Thursday in Pune. The company’s change in strategy by way of entry into the high-growth ‘sunroof’ product line is positive and would be a major value driver.

Maruti Suzuki (MSIL)’s 4QFY25 margin came in 110bp below our estimate at 10.5%, largely due to the lumpy nature of multiple costs that affected its performance.