Top Conviction Ideas (FMCG) - Varun Beverages, DOMS Industries

In Q3FY25, companies within our pharma coverage revenue, EBITDA and Adj. PAT exceeded our expectations by 1.6%/3.7%/9.8%, respectively. The EBITDA margin and Adj. PAT margin outperformed our estimates by 53 bps and 133 bps, respectively.

Asian Markets are trading mixed as investors assess Japan's inflation data, while the threat of U.S. President Donald Trump's tariffs dents investor sentiment. The Nikkei is trading lower by 0.05%, the Shanghai Composite is trading lower by 0.62%, and the Hang Seng is trading higher by 2.38%.

India's passenger vehicle sales are projected to grow by 1.0-4.0% in FY26E, primarily driven by demand for SUVs and new electric vehicle launches. However, entry-level car sales are expected to remain sluggish due to affordability concerns.

Retail Research

Top Conviction Ideas (Infra-Road & Others) - HG Infra Engineering Ltd, Kalpataru Projects International Ltd, J Kumar Infraprojects Ltd.

Asian markets are trading lower as investors react to U.S. President Donald Trump's proposed 25% tariffs on auto, semiconductor, and pharmaceutical imports. The Nikkei is down 1.39%, the Hang Seng has declined 1.78%, and the Shanghai Composite is lower by 0.20%.

In Q3FY25, we observed low teen YoY revenue growth and slight expansion in EBITDA margins for our coverage companies, but overall numbers were below our estimates across the board.

Top Conviction Ideas (BFSI) - ICICI Bank, HDFC Bank, State Bank of India, City Union Bank, Bajaj Finance, Cholamandalam Investment & Finance, Shriram Finance

Top Conviction Ideas (Pharma and Hospital) - Max Healthcare; Lupin; Fortis Healthcare.