Angel One (Angel) registered strong performance in May’23 in terms of growth in number of orders, client additions and market share after a soft Apr’23. Factoring this in our estimates, we forecast PAT at a strong Rs2.3bn in Q1FY24 (vs Rs10bn in FY24E).

Indian Hotels Co. Ltd.’s (IHCL) FY23 Annual Report reiterates the company’s plans to execute its “AHVAAN 2025” strategy which essentially focuses on four key pillars including: 1) reaching a total of 300+ hotels across the portfolio, 2) clocking a consolidated EBITDA margin of 33% by FY26E with 35% EBITDA share from management contracts and new businesses.

Recommendation: We maintain our BUY rating on the stock and revise our TP upwards at Rs 1,450 per share, which indicates upside potential of 11% from the CMP of Rs 1,306.

Lemon Tree Hotels (LTH) clocked its best-ever quarter in Q4FY23, and with the company having achieved FY23 revenue and EBITDA of Rs8.8bn and Rs4.5bn respectively, the company has exceeded its FY23 guidance of revenue growing 100% YoY to Rs8.0bn at an EBITDA margin of 50%.

Strong RevPAR, healthy room additions drive growth

Heidelberg Cement: We maintain our REDUCE rating on Heidelberg Cement (HEIM), with an unchanged target price of INR 160/share (7x Mar-25E EBITDA). In the absence of any major planned expansion for the next few years, we expect HEIM to continue to lose market share. In Q4FY23, volume fell 4% YoY (the sixth consecutive quarter of YoY decline). While unit EBITDA recovers ~INR 245/MT QoQ (from its nine-year low) to INR 583/MT, it remains weak and is down INR 380/MT YoY. Deccan Cements: We maintain our ADD rating on Deccan Cements (DCL), with a lower target price of INR 450/sh (6x its Mar-25E EBITDA). DCL reported an all-around weak performance in Q4FY23 owing to subdued volume, realisation and elevated opex. Its revenue grew by 5% YoY in Q4FY23. However, higher fuel prices led to a decline in EBITDA by 15% YoY. Further, lower EBITDA along with higher capital charges and tax rates led to a steep decline in APAT by 48% YoY. DCL is working on a 2mn MT integrated capacity increase by FY25E-end. Capex more than doubled YoY in FY23 to INR 2.28bn (picked up in H2FY23). We expect volume growth to pick up from FY26 onwards (remain muted during FY24/25). JK Cement: We maintain our REDUCE rating on JK Cement (JKCE), with a revised TP of INR 2,755 (11x Mar-25E consolidated EBITDA). In Q4FY23, JKCE reported 16% YoY consolidated volume growth led by the fast ramp-up of Panna IU in the central region. Consolidated unitary EBITDA recovered ~INR 150/MT QoQ on fuel cost reduction and...

Heidelberg Cement: We maintain our REDUCE rating on Heidelberg Cement (HEIM), with an unchanged target price of INR 160/share (7x Mar-25E EBITDA). In the absence of any major planned expansion for the next few years, we expect HEIM to continue to lose market share. In Q4FY23, volume fell 4% YoY (the sixth consecutive quarter of YoY decline). While unit EBITDA recovers ~INR 245/MT QoQ (from its nine-year low) to INR 583/MT, it remains weak and is down INR 380/MT YoY. Deccan Cements: We maintain our ADD rating on Deccan Cements (DCL), with a lower target price of INR 450/sh (6x its Mar-25E EBITDA). DCL reported an all-around weak performance in Q4FY23 owing to subdued volume, realisation and elevated opex. Its revenue grew by 5% YoY in Q4FY23. However, higher fuel prices led to a decline in EBITDA by 15% YoY. Further, lower EBITDA along with higher capital charges and tax rates led to a steep decline in APAT by 48% YoY. DCL is working on a 2mn MT integrated capacity increase by FY25E-end. Capex more than doubled YoY in FY23 to INR 2.28bn (picked up in H2FY23). We expect volume growth to pick up from FY26 onwards (remain muted during FY24/25). JK Cement: We maintain our REDUCE rating on JK Cement (JKCE), with a revised TP of INR 2,755 (11x Mar-25E consolidated EBITDA). In Q4FY23, JKCE reported 16% YoY consolidated volume growth led by the fast ramp-up of Panna IU in the central region. Consolidated unitary EBITDA recovered ~INR 150/MT QoQ on fuel cost reduction and...

Flat quarter despite growth in non-core markets; Q4 gross margin improved but EBITDA margin still under pressure

Sundaram Finance (Sundaram) reported strong FY23 earnings in key parameters such as standalone AUM growth (up 17% YoY), home finance AUM growth (up 18% YoY), standalone NIMs (5.3%) sustenance in rising interest rate regime and better asset quality (gross stage 3 as on Mar’23 stood at 1.66% vs 2.2% in Mar’22).

Aurobindo Pharma had a satisfactory performance in the current quarter due to stable demand and pricing conditions across their portfolio and geographical regions. In Q4FY23, the company's revenue reached INR 64,730 mn, showing an 11.4% increase compared to the previous year and a 1.0% increase compared to the previous quarter.