Sharekhan Broker Research reports

Indian Hotels Company Ltd’s (IHCL’s) Q3FY25 numbers were strong with domestic like-for-like (LFL) RevPAR growth at 13% y-o-y, management fees rising 32% y-o-y and new businesses seeing 40% y-o-y growth. Consolidated revenue/adjusted PAT (including Taj SATS) rose 29%/40% y-o-y, respectively.

Reported revenue stood at $4,939 million, up 1.7% q-o-q in constant currency (CC) terms, beating our estimate of $4,876 million. EBIT margins improved ~20 bps q-o-q to 21.3 %, beating our estimates. Company closed 17 large deals with TCV of $2.5 billion, up ~3% q-o-q/down 27% y-o-y.

Q3FY25 numbers were weak. Loan growth and deposit growth stood at a multi-quarter low. Slippages were elevated too at 2.3%, a multi-quarter high. Slippages largely attributed to Credit cards, Ppersonal loans, MFI and Agri-portfolio. Asset quality would stablise over the next couple of quarters.

LTTS reported revenue of $312 million, up 3.1% q-o-q/8.7% y-o-y in constant currency (cc) terms, missing our estimate of $315 million, led by Tech and Sustainability offset by weakness in Mobility. Reported revenue in $ terms was up 1.7% q-o-q/7.3% y-o-y while revenue in rupee terms stood at Rs 2,563 crore, up 3.1% q-o-q/9.5% y-o-y.

HCL Technologies (HCL Tech) reported revenue of $3,533 million, up 3.8% q-o-q/4.1% y-o-y in constant currency (CC) terms, missing our estimates of $3,561 million. Revenue in rupee terms stood at Rs. 29,890 crore, up 3.6% q-o-q/5.1% y-o-y. Revenue growth was led by Software, ER&D, and Services business, up 18.7%, 5.4%, and 1.5% q-o-q in CC, respectively.

CESC’s Q3FY25 consolidated revenue/operating profit/profit grew by 1.5%/ 0.4%/ -5.7% y-o-y to Rs. 3,861/ 910 / 265 crore. The earnings were impacted because of higher Malegaon losses and weak standalone result

Reported revenue growth stood at $7,539 million, down 1.7% q-o-q/up 3.5% y-o-y missing our estimates of $7,591 million. Revenue growth in constant currency (CC) terms stood at 4.5% y-o-y. Revenue in rupee terms stood at Rs. 63,973 crore, down 0.4% q-o-q/up 5.6% y-o-y. Seasonality and softness in discretionary demand led to the decline in revenues

We re-iterate a Buy on Radico Khaitan (RKL) with a revised PT of Rs. 2,996. Stock trades at 64x/51x its FY26E/FY27E earnings, respectively. P&A category to post over 15% volume growth in FY2025 driven by focus on premiumisation, while regular category is expected to deliver mid-single-digit volume growth.

Domestic steel prices have shown marginal improvement, with prices stabilizing after a recent decline. This positive development, along with India’s transition to a net steel exporter, bodes well for the steel sector

Polycab has steadily grown its market share and now holds approximately 25-26% of the organised market. The company’s emphasis on power cables (LT/HT) and control cables, which are in high demand, positions it strongly for future growth.