Upgrades

Endurance (ENDU) has consistently outperformed core industry growth, both in India and Europe, over the last five years. Given its healthy order backlog of INR36.1b worth of new orders, we expect ENDU to sustain its outperformance over FY25-27.

BUY with a target price of Rs 702 implying an upside of 10% from the CMP

Acme Solar (ACME) remains our top pick in the Power/Renewables space, with the stock up 45% in the last six months.

JK Tyre's revenue grew during the quarter driven by its India operations, while the Mexico business partially offset this growth due to geopolitical tensions. Margin and profitability were impacted as the cost of sales increased. The Indian tyre industry is expected to grow 7-8% this fiscal driven by strong domestic replacement demand. Furthermore, the company's market penetration, digitalisation efforts and focus on enhancing operational efficiencies are expected to support long-term growth. Nevertheless, global uncertainties caused by US tariffs and the ongoing geopolitical situation continue to pose challenges. As a result, we retain our HOLD rating on the...

*over or under performance to benchmark index Endurance Technologies Ltd is one of India's leading automotive component manufacturers, with operations in the domestic market and Europe. It mainly caters to domestic two- and three-wheeler original equipment manufacturers (OEMs) and supplies aluminium casting products to four-wheeler OEMs in Europe....

We stay positive on Maruti Suzuki India Limited (MSIL), as we expect volumes to regain pace going forward, led by GST rate cuts, festive demand and new launches.

We hosted City Union Bank (CUB)’s senior management (business heads and risk personnel) in Chennai. The bank mentioned that its direct exposure to textiles (US export) is manageable at INR 2.2bn or ~40bps of loans.

We attended a group interaction of investors with IOCL management. Laying out his vision of a comprehensive roadmap for growth, Chairman MR AK Sawhney highlighted with the acronym SPRINT – Strengthening core business, Propel cost optimisation, Reinforce customer centricity, Integrate tech & innovation, Nurture leadership and be Transition ready.

Godrej Agrovet (GOAGRO) has exhibited a pronounced and sustained recovery across its metrics over the last 12–18 months, as cost and margin gains prevailed over soft volume growth.

Grasim Industries (GRASIM) organized an interaction with senior management, who shared their perspectives on the Paints business and highlighted new initiatives being implemented in this segment.

Hindustan Aeronautics (HAL) has received the follow-on order of 97 light combat aircraft (LCA) Mk1A worth INR624b from the Ministry of Defence (MoD). This is in addition to the previous order of 83 Tejas LCA Mk1A received in Jan’21.

BAF’s AUM is expected to grow at 25% (CAGR) for FY25-FY27, driven by favorable government reforms, such as the reduction in GST on auto and consumer durables, which is expected to drive demand.

Given the strong growth trajectory and healthy balance sheet, the stock is valued at a 36x multiple on FY28E EPS (unchanged), arriving at a target price of Rs 690/share (vs. Rs 600 earlier), implying a 19% upside from CMP.

We expect CSL to witness healthy growth in revenues & profitability over FY25-28E, led by execution pick-up in both the segments and increasing share of margin accretive ship-repair segment. We estimate revenue & PAT...

Other income to PBT is ~40% in FY25. The valuation multiple (P/E) based on core business earnings, i.e., excluding cash and tax-adjusted other income, stands at 71x on FY25 earnings. The company gained market
shares in both washing machine and refrigerators in FY25, despite a highly competitive landscape.

Our recent meeting with LT reinforces our thesis that execution growth will remain strong for the company over the next few years, driven by a strong order book. The company is selectively eyeing projects from domestic markets and expects international ordering to keep supporting growth.

We upgrade Hindalco to BUY from Reduce, with an increased TP of Rs900 (Rs650 earlier). After the flatlined stock performance in the past 12M, we see HNDL doing well from here.

We interacted with the management of Aditya Birla Fashion and Retail (ABFRL) to discuss the growth prospects and profitability outlook for the company’s various segments and other focus areas.

De-risking legacy book and building healthy portfolio: South Indian Bank's pre2020 defaults in corporate exposures and Covid related delays spiked NPAs to 5.9% in FY22, forcing large provisions that hammered profitability. The bank has since derisked sharplylegacy stressed book down from 65,349 crore (63% of advances in FY22) to 16,973 crore (19% in FY25) via recoveries/exitsdriving GNPA to 3.2%, NNPA to 0.9%, and PCR to 85%, with ~98% of corporate book now being AAA/A+ rated. Newly originated granular retail/MSME and selective corporate lending shines pristine (GNPA 0.46%), backed by tighter underwriting, digital platforms, and robust collections, with fresh slippages easing to 1.5% for sustained turnaround. Recalibrating the mix remain core strategy: Management is driving a structural...