Sharekhan Broker Research reports

Q2 numbers were a mixed bag with revenues rising 10.5%, but OPM declining to 8.1% from 12.3%. The margins were impacted by lower and volatile copper prices, high-cost inventory and channel destocking.

Consolidated revenues are set to grow by 2x to Rs. 1,5000 crore by 2030; Like-for-like (LFL) RevPar
to grow at CAGR of 8%, management income to clock a 15% CAGR and Re-imagined businesses
contribution to increase to 25% growing at 30% CAGR over the next five years.

The quarter’s revenue reached Rs. 11,090 crore, marking a 9% increase y-o-y and a 22% q-o-q rise.

PNB reported 145% y-o-y earnings growth aided by ~92% y-o-y decline in provisions and ~10% y-o-y
growth in operating profit resulting in RoA/RoE at 1.0%/ 14.7%.

CESC’s consolidated PAT increased by 1.4% y-o-y to Rs. 353 crore with good performance in Haldia and Dhariwal but it was dragged down by the standalone business and Malegaon DF.

Revenue amounted to Rs. 5,237 crore, reflecting a 20% y-o-y increase but a 16% q-o-q decline,
primarily driven by reduced performance in the Indian consumer wellness segment, US
formulations and API business.

Order book has reached Rs. 1,050 crore in Q2FY2025 (vs. Rs. 1000 crore in Q1FY2025). Further, management is looking for healthy demand trends in H2FY2025.

Underlying EBITDA margin in IC business expanded by 150 bps y-o-y to 16.5%. Management maintains its blended EBITDA margin guidance of 14-16%.

We retain Buy on Grasim with a revised PT of Rs. 2,975, led by marginal downward revision in
valuation of Aditya Birla Capital and Vodafone Idea.

We retain BUY on Century Plyboards with an unchanged PT of Rs. 840, considering its strong earnings growth outlook over the next 2-3 years.