Upgrades

We change our rating on the stock from BUY to HOLD.

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.

Kajaria’s Q4FY25 performance was weak on sales volumes as well as profitability fronts and missed our expectations. However, on a positive note, it has gained market share in FY25 as sales volume growth of 6% YoY was ahead of the industry (2% YoY growth).

Tatva Chintan Pharma Chem’s Q4FY25 revenue stood at INR 1,079 Mn., up by 9.8% YoY (+25.6% QoQ), above our estimates by 4.3%, led by strong double-digit growth in PTC and PASC segments. EBITDA came in at INR 90 Mn., down by 42.7% YoY (+26.8% QoQ), below our estimates driven by lower-than-expected gross margins.

With a 15% upside from the CMP, we maintain our BUY rating on the stock

Piramal Enterprises (PIEL) reported a 4QFY25 net profit of ~INR1b (PQ: ~INR386m). This included an exceptional gain of ~INR3.7b from recoveries in the AIF portfolio. For FY25, the total gain from the AIF portfolio stood at INR9.2b. FY25 net profit stood at INR4.85b (vs. a loss of INR16.8b in FY24).

UB will hold share in non-premium, grow in premium. Double digit sales growth and 340bps EBITDA margin expansion between FY25-FY27

Coforge continued to report a strong top-line performance in Q4FY25. Management acknowledged the challenging demand environment but reiterated its goal to reach USD 2bn by FY27 on the back of record-high deal wins in FY25, strong deal pipeline and its ability to proactively shape large deals.

During Q4FY25, the Net Interest Income stood at INR 27,559 Mn., down 3.6% YoY (-2.1% QoQ), below our estimates by 3.7% driven by higher slippages, and lower interest income led by increasing share of secured loans (now stands at ~50% of the book). Core NIMs stood at 6.7%, contracting by 90 bps YoY (-20 bps QoQ).