Sharekhan Broker Research reports

Jyothy Labs Limited’s (JLL’s) Q2FY2025 performance was muted with revenue and PAT remaining flat y-o-y. OPM at 18.9% rose by 38 bps y-o-y.

We retain BUY on JKL with a revised PT of Rs. 900, factoring downwardly revised estimates partly offset by roll forward of valuation to FY2027E earnings.

Revenues stood at Rs. 627 crore, down 10% y-o-y and 5% q-o-q, 12% below our estimates.

We retain a Buy rating on Gateway Distriparks Limited (GDL) with a revised PT of Rs. 105, factoring downwardly revised estimates and expecting a growth revival, led by rise in EXIM growth.

Britannia’s Q2FY2025 numbers missed expectations due to lower-than-expected OPM at 16.8% (versus expectation of 19%) dragged down PAT by 9% y-o-y. Volume growth sustained at 8% better than large peers.

Revenues stood at Rs. 3,590 crore, up 4% y-o-y and a 5% rise q-o-q. EBITDA reached Rs. 730 crore, down 1% y-o-y but up 24% q-o-q. PAT stood at Rs. 27 crore, a decline of 84% y-o-y and 97% q-o-q.

Core operational performance was weak, led by muted NII driven by higher-than-expected NIM compression and higher opex growth (led by employee retiral provisions) despite healthy loan growth (~16% y-o-y). Core PPoP (ex. treasury gains) declined by 7% y-o-y.

Asian Paints Limited’s (APL’s) Q2FY2025 performance was a miss on all fronts with consolidated revenue declining by 5% y-o-y, OPM lower by 480 bps y-o-y to 15.4%; adjusted PAT decreased 34% y-o-y. Decorative paints’ volumes decreased by 0.5%.

Zydus Wellness Limited’s (ZWL’s) Q2FY2025 numbers were mixed with revenue growing by 12% y-o-y to Rs. 493 crore (versus Rs. 475 crore expected), while OPM stood flat y-o-y at 4% (against expectation of 5.3%). Adjusted PAT came in at Rs. 16 crore.

A muted show by OEMs marred Q2FY25 numbers, even though replacement demand was strong.