Anand Rathi Broker Research reports

Nilkamal’s Q3 revenue grew 6.3% y/y to Rs8.5bn. Input-cost tailwinds helped the gross margin expand 126bps y/y to 43.3%. Higher employee expenses and other operating expenses pulled EBITDA down 12.9% y/y to Rs634m. PAT was down a significant 26.4%.

Greenply’s Q3 revenue/gross profit/EBITDA grew 5.6/5.8/7.2% y/y to Rs6.2bn/2.5bn/540m. Adj. PAT was up 26.5% y/y to Rs244m. Despite higher revenue, input cost pressures restricted the gross margin to 40.1%.

Broadly in line with consensus and our estimates, Dhanuka Agritech reported a decent set of Q3 figures. Revenue/EBITDA/PAT grew 10%/22%/21% y/y.

As market leader, Star Cement’s Q3 volume growth outstripped northeastern demand growth, but its operational performance was hit by the delayed Meghalaya clinker stabilisation, higher maintenance shutdown cost, higher freight on a highway being constructed, etc.

Continually good offline margins, lower Limeroad losses and efficiency measures pushed up V-Mart’s Q3 EBITDA margin to 16.7%, considerably above ARe.

Despite muted demand, Arvind Fashions posted 11% retail LTL growth y/y, with double-digit LTL growth for all its five brands. The retail channel outshone (15% growth y/y), driven by higher ad-spend, store expansion and celebrity collaborations.

State Bank of India saw a soft Q3 on subdued NII and miss in other income. The bank’s dominant market position, best-in-class management and strong digital abilities would aid in maintaining its market share, while delivering healthy profitability.

We believe that easing liquidity conditions by the new RBI governor and greater government spending would drive improvement in Axis Bank’s outlook. We see the +ve macro impetus to drive a re-rating in a quality franchisee with a positive risk-reward.

J Kumar's execution velocity grew accompanied by steady margins, and a sound balance sheet. Together, these can facilitate a greater scale of operations ahead.

Mayur’s Q3 revenue surged 17% y/y to Rs2.1bn. The greater share of value-added products and a ramp-up in the B2C business helped the gross margin expand 305bps y/y to 46.9%.