Downgrades

2QFY25 sales were 1% above consensus while EBITDA was 2% higher as margins came in 15bps above expectations

Q2FY25 for Fedbank Financial Services (Fedfina) has been eventful with: 1) a change in top management; 2) RBI circular dated 4 Oct’24 stressing upon carryout lending activities of similar products.

Dr Lal PathLabs’ (Dr Lal) Q2FY25 revenue growth of 9.8% YoY was lower than our expectation, though its better EBITDA margin of 30.7% was a surprise.

With a 10% upside from the CMP, we maintain our long-term BUY rating on the stock.

We maintain our BUY rating on the stock.

SRF posted weak performance in 2QFY25, with a material decline in operating profitability (EBIT down 22% YoY), due to the continuous weakness in the Chemicals business (EBIT dipped 29% YoY).

Hindustan Unilever’s (HUVR) 2QFY25 revenue was up 2% at INR157.3b (in line), with underlying growth of 3%. Volume growth of 3% was below our estimate of 5% (4% in 1QFY25).

HUL’s Q2FY2025 performance was slight miss on expectations with revenues growing by 1.5% y-o-y while PAT declined by ~4% y-o-y; underlying volumes grew by 3%, lagging street expectations of 4-5%.

We maintain a Buy on Kajaria Ceramics with a revised PT of Rs. 1,600, factoring downwardly revised estimates and considering a healthy earnings growth trajectory in the next three years.