Downgrades

Steady 3% volume growth aids marginal fall in topline despite dent in realisations in a challenging Q2; capacity utilisation at ~68%

Revenue declined by 2%/15% YoY/QoQ to ~Rs 31bn in Q2FY25 as focus returned to volume growth over guarding against declining realisations

We retain a Buy on Supreme Industries Limited (SIL) with a revised PT of Rs. 5,700, lowering our valuation multiple. Stock price correction of over 15% in past few days provide buying opportunity.

HPPC business and capex to drive growth

We maintain our BUY rating on the stock with a TP of Rs 12,000/share, implying an upside potential of 10% from the CMP.

We maintain our BUY rating on the stock with a TP of Rs 2040/share, implying an upside of 11% from the CMP.

UltraTech Cement’s (UTCEM) focus on increasing its capacity/market share and enhancing efficiency remains heartening. However, in Q2FY25, the sectoral pangs of subdued demand and weak prices got the better of the industry leader.

L&T Finance (LTF) reported 17% YoY growth in PAT to INR7b (in line) in 2QFY25. PPoP grew ~23% YoY to ~INR15.9b (in line).

Dalmia Bharat (DALBHARA)’s 2QFY25 performance was weak as expected as its EBITDA declined 26% YoY to INR4.3b (5% miss) and EBITDA/t was down 32% YoY to INR650 (est. INR700).