Highest Upside

Aurobindo Pharma’s Q3FY25 performance was below our expectation due to lower-than-anticipated sales in US while Europe (up 22.7% YoY) and growth markets (up 39.2% YoY) maintained traction. EBITDA margin was 20.4% despite lower gRevlimid sales and INR 600mn cost of Pen-G plant.

US sales cc quarterly run rate at its highest-ever level of US$ 235mn, expect to inch up to US$ 250mn in FY26E and US$ 280mn in FY27E

Pearl in an oyster

Durable, sustainable and versatile products to meet increasing real estate demand from urbanization
? Easy to install products with quicker turnaround time ensures real estate developers compliance with RERA timelines thereby increasing preference towards Company’s products
? Capability to produce multiple SKUs (different thickness, colors) in small to big batch sizes provides flexibility to developers to meet changing needs of urban population

Vedant Fashions (VFL) reported a muted performance in 3QFY25, with YoY flat EBITDA and PAT (11-12% miss) due to weak SSSG (2.6%) and higher other expenses.

Earnings growth would improve as AUM growth improves in the coming years as the most internal IT/systems and processes have been streamlined in FY2024. Focus is now on accelerating growth with enhanced centralised due diligence.

Nuvama Wealth’s (NUVAMA) 4QFY25 operating revenue grew 30% YoY to INR7.7b (11% beat), mainly fueled by higher-than-expected revenue from Nuvama Private (20% beat) and its capital market segment (13% beat).

Over the past 12-18 months, investors were enthused by a large-cap stock delivering volumes growth CAGR of 7-8%, alongside an improving demand outlook resulting in solid earnings momentum.

Update Note

Rising share of diversified and secured portfolio with MFI mix likely to decline further; scaling up granular deposit franchise