Stock Market Live Updates 26 April 2024: Sensex, Nifty flat in early session; TechM spikes up over 11% on Nifty
Citi on Bajaj Fin
Buy Call, Target Cut To Rs 8,675
Q4 Earnings, Despite Being Impacted 4% By Regulatory Restrictions, Were In-line
Co Trimmed FY25 Guidance Bridging Premium FY24 RoA To Long-term Guidance In FY25 Itself
Co Guides For 30-40 bps NIM Moderation In H1FY25
Co’s Guidance Assumes Lifting Of Regulatory Restrictions In Near Future
Building In 30 bps NIM Compression, Credit Cost Of 1.7-1.8% & 26-27% AUM Growth
Cut Earnings Estimates By 7%/7% For FY25/26
Jefferies on Bajaj Fin
Buy, TP Rs 9260
Profit of Rs38bn, +21% YoY, was in line with est.
Strong AUM growth of 34% was partly offset by lower NIMs, so NII grew by 28%.
While RBI’s embargo affected 4Q perf., expect relaxation in 1/2 qtrs.
Trim est. by 2-3%
Jefferies on Laurus Labs
Underperform Call, Target Rs 250
Missed Estimates Yet Again With Another Weak Quarter For CDMO
Mgmt Provided More Color On The Animal Health And Agrochem CDMO Contracts
Mgmt Believes Animal Health & Agrochem CDMO Contracts Will Scale-up Only Beyond FY26
Till FY26, Co’s EBITDA Margins Will Remain Under Pressure
Cut FY25/FY26 Estimates By 15%/3% On Lower CDMO Sales
GS on Laurus Labs
Sell, TP cut to Rs 325
CDMO growth slower than expected, ltd visibility on ramp-up in FY25;
Lower FY25-FY27E EPS est. by up to 8% to factor in Q4 miss, slower topline/ margin development & revised biz outlook
EBITDA margin below est at 16.8%
MS on Cyient
Overweight Call, Target Cut To Rs 2,250/Sh From 2,400
Q4 Shows Softer Than Expected Rev Guide But Resilience In Margin Relative To Peers
Q4 Shows Reiteration Of Medium-term Revenue Growth And Margin Outlook
MS on L&T Tech
Underweight Call, Target Rs 4,200
Q4 Results Missed Estimates
Weak Revenue Growth Guidance Was Baked Into Buy-side Estimates
A Reset Of Margin Expectations Came As A Negative Surprise
Given Stock’s YTD Outperformance & Cut To EPS Est, Expect To Underperform
CITI on L&T Tech
Sell, TP cut to Rs 4070
4Q rev largely in line, while margins missed
EBIT margins lower largely due to high subcontracting costs
FY25 overall cc rev growth guidance at 8-10% (vs expectation of 10%+)
FY25 margins to be c.16% vs consensus at 18.7%
MS on Dalmia Bharat
Overweight Call, Target Cut To Rs 2,200
Management Sounds Confident On The Medium-Term Outlook
Margin Remain Under Near-Term Pressure Given Weak Prices Over Coming Quarters
JPA Consolidation Is Pushed Out, Which Could Remain An Overhang
Cut Estimates & Price Target To Reflect Poor Results And H1FY25 Outlook
MS on Nestle
Underweight Call, Target Rs 1,990
Co’s Earnings Were Ahead Of Our And Consensus Estimates By 9-10%
See Headwinds To Growth And Margins In FY25
Believe The Two New Business Initiatives Announced Are Positive
MS on Tata Steel
Equal-Weight Call, Target Rs 135
Believe UK Biz Restructuring Update Is A Positive Development
UK Biz Update Positive As Discussions With Trade Unions Was An Overhang On Stock
MS on IndusInd BK
OW, TP Rs 1925
Positives: Asset quality improved, strong retail deposit growth, and strong loan growth.
Negatives: Miss on NII and fees.
Balance sheet is strong with CET-1 ratio at 15.8% & LCR at 118%.
Trim EPS by 2% for F25/F26
Jefferies on IndusInd BK
Buy, TP Rs 1940
Profit of Rs24bn, up 15% YoY, was marginally below estimate.
Stable NIMs and credit quality were key positives, but high opex growth and lower fees dragged profit.
Credit cost reported was at 1.1% of avg loans, but adj for drawdown at 1.5%
HSBC on Tech Mahindra
Hold, TP Rs 1300
New turnaround plan looks sensible, but execution remains challenging, especially in the current environment
Margin expansion is highly contingent on pyramid improvement while maintaining average pricing, which will be tough to deliver
CLSA on Vedanta
Buy Call, Target Raised To Rs 430
Q4 EBITDA Of Rs88bn, Up 3% QoQ Was 6% Above Our Est Largely On Better Zinc & Oil Profitability
Net Debt Reduction By Rs6,000 Cr QoQ On Lower Working Capital Was A Surprise
Commissioning Of Ongoing Projects Across Segments Would Be A Key Earnings Driver
Commodity Price Uptick Will Be Key Earnings Driver
Given Deleveraging Plans At Parent VRL, Dividend Is Likely To Remain Elevated
Co Is A Good Play On The Metals Upcycle With Its Diversified Commodity Exposure
Co Is A Good Play On The Metals Upcycle With Ongoing Capacity Increase/Cash Reduction Projs
CITI on Vedanta
Buy, TP raised to Rs 425 from Rs 305
At Rs87.7bn (5% ahead), Vedanta’s 4Q EBITDA rose 3% qoq largely on lower costs, commodity prices were subdued.
Liability mgmt at holdo gives us confidence around VED India’s balance sheet as well
Every $100/t in zinc-lead LME impacts EBITDA by 2% and fair value by Rs15/sh.
Every $100/t change in ally LME impacts EBITDA by 4% and fair value by Rs30/sh.
Every $10/t change in crude impacts EBITDA by 1.5% and fair value by Rs5/sh
4Q Ebitda of Rs88bn (+3% QoQ) 6% above est. largely on better zinc & oil profitability
Net debt reduction by Rs60bn QoQ a surprise.
Given deleveraging plans at parent, dividend likely to remain elevated
A good play on metals upcycle
