Sector Updates

12.5% in 4QFY25E, impacted by a higher contribution from the movie business, which typically commands lower margins. Entertainment: While headwinds in Kiddopia, Nodwin, Real Money Gaming &...

Mahindra Logistics as volume growth challenge is likely to put TCI's profitability growth under pressure. Overall, the demand environment on B2B express side continues to remain muted while the competitive intensity in B2C parcel segment is likely to taper off as consolidation amongst 3PL players has...

growth. We maintain our positive stance on the telecom sector given the much needed tariff hikes undertaken by the companies. Maintain Accumulate' rating on Bharti with SOTP-based TP of Rs1,916 valuing the India business at 13x FY27...

Additionally, NCERT's announcement of new competency-based textbooks for grades 4, 5, 7, and 8 marks a meaningful expansion in the curriculum upgrade cycle. While the sales season for FY25E will remain unaffected, this remain under pressure amid the growing adoption of second-hand books, although recurring institutional orders may offer a temporary buffer. On the operating performance front, while NELI and S Chand's EBITDA is likely to witness mid-single digit growth, DOMS is likely to witness margin compression due to consolidation of personal hygiene business. Among our coverage...

Jan/Feb registering double digit growth in monthly traffic to 14.6mn/14.0mn luggage sector, given price environment continues to remain competitive, growth is likely to be driven by volumes. Overall, aviation and hospitality are key beneficiaries of Maha Kumbh. Within our hospitality coverage universe, we expect RevPAR growth to be in mid-teens for Chalet and Lemon Tree. As for Indigo, we expect yields to remain flat with a top-line of Rs218bn and EBITDAR margin of 28.5% (excluding FX loss/gain). We prefer Indigo and VIP at current levels and have upgraded IRCTC to a BUY....

Dovish policy with flood of liquidity

In Q3FY25, volume growth remained a primary driver for the sector, however, price realisation has
been under strain due to sluggish global demand, increased competition, particularly from China,
and ongoing global uncertainties. In Q4FY25E, we anticipate that revenue growth for most companies will be driven primarily by higher volumes, with limited margin expansion owing to continued competitive pricing pressure.

OUR TOP POSITIVE PLAYS Prestige Estates; Signature Global

Q4FY25 Earnings Play : Auto OEMs: Ashok Leyland, TVS Motors. (M&M - Non-Coverage) Auto Ancillary: UNO Minda, Sansera Engineering Ltd, SSWL