Downgrades

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

KEI reported a healthy revenue growth of 26% y-o-y, reaching Rs. 2,914 crore (our estimate of Rs 2,737 crore) for Q4FY2025 led by 35% y-o-y growth in C&W revenues.

During Q1CY25, VBL’s total revenue increased 28.9% YoY (+50.9% QoQ) to INR 55,669 Mn., which was above our estimates (+16.5%) driven by sharp beat of 20. 4% in CSD segment volumes. Consolidated sales volume grew by 30.0% YoY to 312 Mn cases from 240 Mn cases, driven by strong organic volume growth of 15.5% YoY in India and inorganic volume contributions from South Africa and DRC (Democratic Republic of the Congo).

Weak Q4 on soft demand environment and margin pressure in tile segment; ceased plywood operations due to continued losses

Kajaria Ceramics’ (KJC) 4QFY25 EBITDA was below our estimate due to lowerthan-estimated realization and higher-than-estimated other expenses. EBITDA (including discontinued operation) declined ~28% YoY to INR1.7b (~28% miss) and OPM contracted 3.8pp YoY to ~10% (est. ~13%).

CAMS reported operating revenue of INR3.6b in 4QFY25 (7% beat), up 15% YoY. For FY25, operating revenue grew 25% YoY to ~INR14.2b. Total operating expenses grew 18% YoY to INR1.97b. Employee expenses/other expenses rose 12%/27% YoY to ~INR1.2b/INR790m.

Alembic Pharma (ALPM) delivered a better-than-expected performance in 4QFY25. A strong performance in export markets was offset partly by a muted show in domestic formulation (DF) segment.

Exide's 4QFY25 performance was in line with our estimates, with PAT declining 10% YoY to INR2.5b. Margin contracted 170bp YoY to 11.2% due to the rise in input costs and write-offs taken in the quarter.