Highest Upside

With a 13% upside from the CMP, we maintain our long-term BUY rating on the stock.

In line with ARe, Dollar Industries' Q3 sales grew 14.8% y/y. The South brought ~8% to 9M FY25 revenue; plans are to hike this to 13-15% over 2-3 years. At end-Q3, the company had 17 EBOs and plans to increase this to ~125 by FY26. Force NXT (premium segment) continues to do well, recording 13.8%/23.3% value/volume growth y/y.

Gulf Oil (GOLI) delivered a relatively strong Q3FY25 with 10%/21.6% YoY growth in EBITDA/PAT to INR 1.2bn/INR 0.98bn (ISec: EBITDA/PAT INR 1.1bn/INR 0.87bn).

ITC delivered consolidated revenue growth (ex-hotel business) of 9% YoY (beat) in 3QFY25, mainly led by the cigarette business. EBITDA grew by 2% YoY to INR63.6b. APAT declined 7% YoY to INR48b.

We maintain our BUY rating on the stock.

Hatsun Agro’s ice cream business has strong potential to create value, in our view, as it has built multiple competitive advantages such as established brands (Arun and Ibaco), HAP Daily, three manufacturing units which help to cater to a large geography – this results in higher TAM at lower freight costs and storage units which help in reducing capex.

In FY24 and 1HFY25, CLGT achieved revenue growth of 9% and 11%, outperforming FMCG peers (refer to Exhibits 1/2). Volume growth remained flat in FY24 but improved to 7% in 1HFY25.

We upgrade our rating on the stock from HOLD to BUY considering attractive valuations post the recent correction in stock price while long-term growth prospects remain intact.

In Q3FY25, ICICI Lombard’s PAT beat estimates at Rs. 724 crore, rising 68% y-o-y. Higher investment income (up 28% y-o-y) and lower claims ratio (in motor & commercial lines) drove strong earnings.

Spandana Sphoorty (SPANDANA)’s 3QFY25 loss stood at ~INR4.4b (vs. est. loss of INR4.6b), driven by elevated credit costs. 9MFY25 loss stood at INR6b. We expect the company to report another loss quarter in 4QFY25 as well.