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Breaking the Sarkari bank' stereotype

Tata Communications (TCom) has shared an upbeat revenue growth outlook for FY23 27E in its investor meet (on June 7, ’23). The company expects its data revenue to grow by 2x to Rs280bn by FY27 at a revenue CAGR of 18%. This will be driven by >35% growth in its digital services revenue during the same period, and its mix will rise to >50%.

Volume growth healthy including contribution from the new Panna unit that has attained 60% capacity utilisation

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.