Downgrades

Tata Communications (TCOM) reported weak results with consolidated EBITDA declining 1% QoQ (5% miss) and margins contracting 60bp QoQ to19.4%.

The RBI has instructed Asirvad Micro Finance, a subsidiary of Manappuram Finance, to halt the sanctioning and disbursement of loans, effective 21st Oct’24.

ICICIGI’s GDP grew 11% YoY in 2QFY25 to INR69b (3% miss). NEP grew 17% YoY to INR50b (3% ahead of our estimates).

Despite 9% YoY growth in NII, Axis Bank (Axis) reported Q2FY25 PAT of INR 69.2bn, up 18% YoY, driven by strong treasury gains (INR 11.1bn) and contained opex.

Nestle’s Q2FY25 revenue growth was disappointing; it further de-accelerated to 1% YoY (vs 4% in Q1FY25) due to subdued consumer demand.

We remain optimistic about the company's long-term prospects. With an 11% upside potential from the CMP, we maintain our BUY rating on the stock.

we cut our AUM growth estimates to ~15% CAGR over FY24-27E vs ~18% CAGR earlier. We also cut our earnings estimates by 7-9% over FY25-27E. That said, the actual financial impact would be largely dependent on the duration of the restrictions.

Nestle India (Nestle) reported weak revenue growth of 1% YoY (est. 6%) in 2QFY25. Last eight-quarter average revenue growth was 10%. Domestic sales grew 1% YoY, impacted by muted demand and higher commodity prices.

Sales came in 4% below consensus while EBITDA was 10% lower due to margin being 152bps below expectations