Highest Upside

We retain BUY on Mahindra Logistics Limited (MLL) with a revised PT of Rs. 560, factoring in downwardly revised estimates, while it remains on a growth path.

Ugro reported a satisfactory performance in Q2FY25, where it delivered a strong performance in terms of highest-ever net disbursement of Rs19.7bn (+34% YoY; +71% QoQ) and AUM reaching Rs101.6bn (+34% YoY; +10% QoQ).

Quarterly Update Q2FY25

Amid weak crude oil prices, the share price of Oil India (OINL) has declined 22% in the last 5 weeks. However, we reiterate our BUY rating on the stock.

In tandem with historical trend of seasonality, DCX delivered a muted H1FY25 but slew of order wins was the showstopper in Q2FY25 with a total order worth of INR.30,000 Mn. For the Q2 in specific, higher material cost continued to weigh on margin and resulted into a miss on earnings.

PVR Inox’s ad revenue grew ~36% QoQ to ~INR 1.48bn (highest quarterly ad-income post Covid) in Q3FY25, which in our view is an encouraging development.

JLR reported ~10% drop in Q2 wholesales at 87K units amid issues at a key aluminum vendor; however, it expects production and wholesales to grow strongly in H2 amid supply normalization.

Dull Q2 on weak performance across segments due to cost inflation pressure in a weak demand environment and sales force rationalisation

Service level EBITDA margin for Delhivery express parcel segment was ~500bps lower than what was realised in Q3FY24, despite a similar top line due to a one-off surge in intracity vehicle rental expenses (cINR 540mn differential).