Highest Upside

Initiating Coverage Report

Traction in overall performance; expect re-rating

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we recommend a BUY rating on the stock.

Refex Industries Limited, established in 2002 and headquartered in Chennai, began its journey as Refex Refrigerant Limited, focusing on eco-friendly refrigerant gases. In 2018, the company commenced fly ash and coal handling services for thermal power plants. By 2022, it had entered
the power trading business with a Category-l license.

We cut our EBITDA estimates by 8%/7% for FY26E/FY27E respectively as we re-align our footfall and ARPU growth assumptions at parks in Khopoli, Lonavala and Shirdi. Imagicaaworld Entertainment Ltd (IEL) reported a subdued operational performance with EBITDA margin of 32.2% (PLe 44.1%) amid pressure on footfalls and pricing. On LFL basis, footfalls were down ~5% while implied blended ARPU was under pressure due to rise in ticketing volumes...

Its choice of micro-markets and differentiated products make Suraj Estate stand out. On its long-standing operations (over 38 years’ delivery) in south-central Mumbai (high barriers to entry, paucity of land parcels), cost and time effective redevelopment model, keen focus on the value-luxury category (conforming to demographics) and select luxury developments, it has emerged as a real estate supplier of choice in its chosen markets.

We hosted Honasa Day, which featured presentations from Varun Alagh (Co-founder & CEO), Ghazal Alagh (Cofounder & CIO) and team. Given the management conviction, the evolution in the business strategy and the strength in execution, we reiterate our high conviction positive stance on Honasa.

Go Fashion’s standalone Q3 6.2/3.3/3.9% y/y growth in sales/EBITDA/ PAT was anaemic but decent in the context of the weak demand situation. SSSG/SCSG was flat/4.8%. The gross margin rose 264bps y/y to 64.1%, led largely by low-cost inventory (but also by the favourable product mix and higher EBO sales).

Ad revenue declined 6.4% YoY in Q3FY25 as there was a sharp cut in ad spends by FMCG companies in Nov’24 and Dec’24. Subscription grew 2% YoY, lower than our estimated 4% YoY, as pricing hikes by the company are taking time to implement.