Emkay Broker Research reports

We upgrade Westlife to BUY (from Add), as it offers an improving growth/margin trajectory at an attractive entry point.

TVSL reported a healthy operational performance (revenue up 10% YoY; margins up by 20bps QoQ to 11.9%, a fresh high). TVSL expects the robust momentum in the domestic 2W industry to continue, led by rural green shoots, with exports also seeing sustained recovery;

Indian Bank consciously slowed down credit growth in 3Q to ~11% YoY to protect its margins, which manifested via a 6bps QoQ improvement in NIM to 3.45%, defying industry trend.

Under new MD Manian (ex-Kotak), Federal has adopted a risk calibrated growth strategy from 3Q itself (down to 16% YoY from a high of 19-20%), and made accelerated provisions (Rs2.9bn) leading to a 10% miss on PAT at Rs9.6bn (1% RoA).

PLNG posted Q3FY25 adj SA EBITDA of Rs12.8bn and APAT of Rs8.9bn, which were in-line. Provision on Use or Pay (UoP) was Rs1.5bn, while UoP income booked for CY24 was Rs1.17bn.

Ugro reported a satisfactory performance in Q3FY25, in terms on AUM growth, asset quality, and credit cost. The company registered its highest-ever disbursement, of ~Rs20.5bn (grew 32% YoY/4% QoQ), resulting in AUM growing ~9% sequentially.

We upgrade Route Mobile to BUY from Add, given favorable risk reward following the 21%/26% correction over 3M/6M and healthy OCF yield (7% annualized for FY25).

IOCL’s Q3FY25 SA EBITDA was Rs91.5bn, at a 25% miss to our estimate due to lower-than expected GRM (at USD2.95 from inventory loss of USD3.7/bbl) and weak marketing performance amid LPG under recoveries of Rs54.5bn.

Despite continued contraction in margins due to lower loan yields/other interest income, and higher provisions, Canara Bank posted in-line earnings with PAT at Rs41bn/1% RoA, mainly aided by higher other income (especially treasury gains/recovery from written-off loans).

ICICI Bank has once again posted an endearing performance with in-line PAT at Rs118bn/superior RoA of 2.4%, system-beating credit growth at 14% YoY, nearly stable margins at 4.25%, and steady asset quality, amid tough times. Deposit growth has moderated, but is well above the system’s at 14% YoY, exhibiting the bank’s strong liability franchisee built over the years.