Sell

Quarterly Update Q4FY24

Given the uncertainty from the world's largest economies, we expect delays in decision-making on IT budgets. Keeping this in view, we recommend a SELL on the stocks.

Quarterly Update Q4FY24

Our REDUCE call on Nestlé is a factor of valuations (62x P/E for FY26) pricingin the positive outlook. Capacity augmentation (Rs64bn capex spends over
CY20-25), a wider parent portfolio (gaining relevance in the Indian context),
and thrust on rural, all bolster the fundamentals

Equitas SFB continues to report subdued credit growth at 20% YoY mainly due
to slower growth in the new CV and NBFC segments, which coupled with
elevated funding cost has led to further deterioration in NIM by 20bps QoQ to
8.2%.

LTIMindtree reported weak results for a second quarter in a row – revenue
declined 1.3% QoQ (-1.3% cc) compared with our estimate of a 0.5% dip.
Revenue growth was impacted by continued softness in discretionary spending
and cancellation of a couple of projects in BFSI.

The RBI has barred Kotak Mahindra Bank (KMB) from onboarding new
customers via online/mobile banking channels or issuing new credit cards,
mainly due to unaddressed supervisory concerns emerging from the Regulator’s
IT examination for FY22/23 and from the frequent tech-outages (latest being
on 15-Apr-2024).

On 22-Apr-2024, MMFS informed the exchanges that it has detected a fraud in
one of its branches in the Northeast that involved forged KYC documents for
retail vehicle loan disbursements, thus leading to embezzlement of Company’s
funds

ABFRL’s board has approved the demerger of its Madura business into a new
entity – ABLBL, upon the requisite regulatory approvals over the next 9-12
months. In our view, this move should unlock value through better capital
allocation and improved investor interest for the two businesses individually.