Sharekhan Broker Research reports

Devyani International Limited (DIL) posted another quarter of muted performance in Q2FY2025, with KFC’s and Pizza Hut’s SSSG declining by 7% and 5.7%, respectively. Revenue growth of 49% y-o-y was mainly led by the integration of Thailand’s KFC business.

? We retain a Buy on PNC Infratech with a revised PT of Rs. 400, factoring downwardly revised estimates and lowering valuation multiple to factor in medium-term uncertainties with respect to its disqualification by MoRTH.

Quarterly revenues reached Rs. 2,355 crore, marking a 16% y-o-y increase and a 13% rise from the
previous quarter. Profit after tax (PAT) came in strong at Rs. 245 crore, up 39% as compared to last year and 23%, sequentially.

Gokaldas Exports’s (GKEL’s) LFL performance was good with revenues growing strongly by 28% y-o-y to Rs. 652 crore, EBIDTA margins stood flat y-o-y at 11%.

Eicher reported a mixed performance in Q2, as it missed EBITDA margin estimates; bottom line came close to estimates on lower tax providing and higher income from VECV.

Balrampur Chini Mills’ (BCML’s) Q2FY2025 numbers were affected by government restrictions in distillery operations and lower crushing volumes. Revenues fell by 16% y-o-y and EBIDTA fell by 70% y-o-y (EBIDTA margins decreased to 3.8%).

Topline rose 17% y-o-y and 5% q-o-q, with operating Profit of Rs. 243 crore and adjusted
PAT of Rs. 112 Crore surpassing our estimates, attributed to margin enhancements in
LSC and POC.

PAT rose 43% y-o-y to Rs. 92 crore, supported by strong revenue growth of 29% y-o-y and good OPM of 22.2%. OPM improved by 306 bps led by lower other expenses.

We retain a BUY on Ramco with a revised PT of Rs. 1,060, marginally increasing our valuation multiple considering its strong cost competitiveness and future capacity additions at minimal capex requirements.

We retain a Buy rating on Shree Cement with a revised PT of Rs. 28,800, factoring a marginal downward revision in operational profitability led by lower volume growth than earlier envisaged.