Adoption of high speed rails can aid in growth of India’s EV adoption rate like China

Business, Equities, Markets, Result Updates - January 17, 2025

Expectation of allocations for Railway Sector to about Rs 3 Lakh Crore

In the Union Budget 2025, there are currently high expectations in the market about a positive announcement for the railway sector. Despite this, many railway stocks are performing low compared to their high record trend in the year 2024. The reason for this is muted market sentiments. There are high expectations about the railway sector securing allocation of around Rs. 3 lakh in upcoming Union Budget 2025-2026.

Expectations about Allocation of Funds
In the Union Budget 2024, the funds allocated for the railway sector was slightly more than Rs. 2.62 lakh crore. Till the date of 5th January, the funds utilised accounts to Rs. 2 lakh crore. Many analysts estimate that the coming budget will record a rise in 15 to 20 percent of allocation of funds.

Partner and Vice President of Complete Circle Capital, Aditya Kondawar points out some likely projects such as improvements in KAVACH safety system, adoption of artificial intelligence (AI) for functions such as ticketing and also to raise funds in the Bullet Train project. He further points out allocation for projects such as Gati Shakti Multi-Modal Cargo Terminals (GCT) in order to encourage private investments in cargo infrastructure and also for the progress of the Amrit Bharat Station Redevelopment Scheme.

Increase in only allocation of funds in the railway sector is not enough. The utilisation of these funds is a very important step to achieve planned goals and development.

The equity research analyst at Choice Broking firm, Mandar Bhojane stated that the amount of capital expenditure in the railway sector has constantly increased in the duration of the previous five years. However, it has failed to achieve project timelines on time. He also believes that companies working in the railway sector will receive stimulus from the Indian government on the basis of schemes such as Public-Private Partnership (PPP) and Make in India.

Government Plans
The Indian government seemingly has plans to acquire 90 more Vande Bharat trains. At present, 136 Vande Bharat trains are functioning in India. It also has plans to use funds to build infrastructure for high-speed rail testing. The test track infrastructure is being constructed in Rajasthan which accounts to funds of Rs. 820 crore.

To increase Indian railway’s market share in cargo, it is expected to announce purchase orders of big wagons in the range of Rs 20,000 to Rs 25,000 crore. The current market share of the railway sector in cargo is about 27 percent. Also, the funds are projected to be used for the purpose of complete electrification of main railway lines as well as for enhancement of safety with improvement in level crossings, bridges and signalling.

Performance of Railway Stock
Many railway stocks are representing a weak trend. The railway stocks such as Jupiter Wagon and RailTel Corporation fell to 44 percent and 42 percent, respectively. Stock of Texmaco Rail and Container Corporation of India declined to 42 percent and 38 percent, respectively. While railway stocks such as IRCTC, IRCON International, RVNL declined to 35 percent, 48 percent, and 45 percent, respectively. Also, IRFC which was at its 52-week high fell to 48 percent.

Smallcase Manager and Co-Founder of KamayaKya, Nitya Shah stated that the Indian railway stocks were placed at very high valuation in recent times. Many railway stocks were considered multi-baggers in the period of the previous three years.

The railway stocks such as IRFC, IRCON International, Titagarh Wagons, and RVNL have given strong annualised returns in between 25 to 50 percent. The high valuations show positive expectations about the future growth. Despite this, there are rising concerns about whether these high valuations can be maintained or not in case of no corresponding increase in earnings of the firms. In present times, investors have to wait for better fair prices in this situation of high valuations of the stocks.

The image added is for representation purposes only

0 Comment

Jio’s Giant Leap: Reliance Confirms IPO in Early 2026

Business, Equities, Markets, Result Updates - January 17, 2025

RIL performance in third quarter supported by performance of consumer businesses

Reliance Industries Limited (RIL) in terms of both EBITDA and revenue observed consecutive growth in the third quarter of the FY25. The main growth drivers were the Retail businesses and digital services of the firm.

Digital Services
The reason for increase in growth in the digital services segment of the business was mainly due to remarkable improvement in the Jio’s Average Revenue Per User (ARPU). This hike in ARPU indicates the potential of Jio to make more money from its customers. It is supported by factors such as increase in tariff, providing more expensive data plans and value-added services to customers.

Both EBITDA and revenue recorded a strong growth of 19 percent year-on-year. The growth in subscription additions was slow. However, the growth in ARPU was around 12 percent year–on-year. It was supported by a rise in contributions from 5G users and a spike in tariff.

Retail business
The revenue growth year-on-year of RRVL is high in single-digit for the third quarter of the financial year 2025. The positive growth was observed in consumption sections due to rise in positive customer sentiments. It was supported by the festive and wedding season. Also, the company’s strategy of network expansion along with strong growth in store throughput helped in achieving revenue growth.

In this quarter, RRVL recorded a year-on-year growth of 6 percent. It aims to draw more new customers, which is supported by growth of 15 percent in registered consumer base and 5 percent growth in shopping traffic.

The Business to customer (B2C) grocery recorded robust growth of 37 percent, supported by big stores. It observed growth in segments such as value apparel, premium personal care and general products. While, the retail electronic operations observed an increase in paying customers and a spike in average expenditures. While the fashion and lifestyle division of the company registered positive improvements due to launching of new fashion and enhancement of shopping experiences.

The contribution of digital and new commerce operations in total sales growth was 18 percent in the third quarter compared to 17 percent in the second quarter. The consumer brands’ revenue of the company is increasing at fast speed which accounts to Rs.8000 crore in the duration of nine months of the financial year 2025.

The total margins of RRVL raised by 8.6 percent due to increase in store throughput as well as efficiency in its operations.

One of the reasons for its increasing revenue growth is the company’s partnerships with global brands to expand its product base and to draw new consumers. In the third quarter, the company did a franchise partnership with Saks Fifth Avenue. It also did a joint venture with Mother care in order to get the Mothercare brand.

Oil and Gas Segment
In contrast to retail and digital services business, the oil and gas E&P segment recorded a fall in year-on-year revenue growth by 5 percent. The reason for decline in revenue was fall in volumes of gas and condensate in KGD6 and fall in prices of condensate and CBM gas. Though, it was partially balanced out by a rise in volumes of CBM gas and a slight rise in the price of KGD6 gas.

Oil to Chemical segment
Despite a fall in export by 9 percent, the revenues of the Oil to Chemical segment recorded an increase of 6 percent year-on-year growth. Overall revenue performance of the segment fell due to decline in export contribution.

The EBITDA of the segment increased by 16 percent on a quarter-on-quarter basis leading to improvement in margins by 165 bps. The transportation fuel prices were supported by robust demand in Asia except China. It was partially balanced out by the weak demand in China. Gasoline 92 RON prices in Singapore dropped slightly by $6.5 per barrel in the third quarter of financial year 2025 compared to $6.8 per barrel in the second quarter of the same financial year. The reason for this is sufficient supply in the market due to high US refinery production and slow demand in China.

The polymer margins of PVC and polypropylene were better which was partially supported by domestic demand levels and prices of Singaporean Naphtha. In contrast to this, polyester and polyethylene margins did not perform well.

Outlook
The diversified business structure of RIL is seen to be useful in the present domestic and international business challenges. Its proof is seen in the company’s growth in consumption-based businesses.

The company’s investment in 5G services is giving good results as 170 million 5G subscribers in the third quarter are recorded compared to 148 million subscribers in the second quarter. It made RIL as the biggest global 5G operator beyond China.

The broadband connectivity of Jio AirFiber is across India, particularly between the top 1,000 cities. It is important to note that more than 70 percent of the new connections are from these less served areas only. The home connection of Jio is increasing at a faster rate and the total installation has reached nearly 17 million. At global level, Jio is the fastest-growing fixed wireless operation. It has more than 2.8 million Jio AirFiber connections. The expansion of these services will certainly lead to a boost in financial performance of the company.

RRVL is also focusing on the creation of express deliveries of various products to fulfill consumer choice for quick delivery. It is implementing this plan through Jio Mart. The expansion of product base and improvement in customer sentiment will lead to a return of double-digit growth.

The E&P segment is going through temporary challenges. The 40 multi-lateral wells campaign (34 wells completed already) will help in production of CBM.

RIL will face risk and opportunity in the US-China trade war. RIL’s focus on premiumization in consumption productions and digitization will help its consumer-based operations. Directing cash flows in the clean energy sector will make RIL a key player in the transformation of the energy sector in India.

The image added is for representation purposes only

0 Comment

Business, Equities, Markets, Research, Result Updates - January 14, 2025

D-Mart's Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

D-Mart’s Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

Overview
D-Mart’s top-line growth has been robust, according to the pre-quarter business update released on January 2. The top line was strong, but because of higher discounting and ongoing operating deleverage, margins fell short of projections.

Even though D-Mart is following a sound network expansion plan, it is facing more and more difficulties as quick commerce rivals gain market share quickly. Additionally, D-Mart has announced plans to replace its leadership. In light of the growing consumer preference for speedy transactions in the grocery industry, we are awaiting the new management’s strategy and plans for execution. When it comes to the stock, investors should have reasonable expectations.

Details of Q3 Results
Q3FY25 revenues increased 18% year-over-year. Revenue/square feet growth returned to the mid-single digits (4% YoY), but store count and retail business area expanded 14% year-over-year. A pick-up in demand was indicated by the 8.3 percent YoY improvement in like-for-like revenue growth for mature stores (those that have been in business for more than 24 months).

The FMCG segment’s higher level of discounting caused a little year-over-year fall in gross margins. Additionally, operating de-leverage brought about by muted revenue/square foot growth had an impact on the EBITDA margins. D-Mart’s operating margins were below street estimates and fell 70 basis points year over year. Profitability was further impacted by reduced revenue and higher depreciation costs brought on by the establishment of more outlets. Compared to the growth in revenue, the consolidated net profit growth was in the mid-single digits.

Store Addition significantly increased
As store openings accelerated in Q3FY25, D-Mart maintained its sound store expansion strategy. In Q3FY25, D-Mart opened 10 new locations, increasing the total number of new stores established in 9MFY25 to 22 (D-Mart opened 17 in 9MFY24). D-Mart has been expanding its footprint in the 12 states where it currently operates within the last 12 months. It still uses the cluster-based expansion strategy, which entails opening new stores close to existing ones. In addition to NCR and Chhattisgarh, D-Mart has opened new locations in every state where it operates.

Online business acceleration
D-Mart Ready which is the online-business arm of D-Mart, is progressively expanding into major cities. D-Mart expanded into three new cities in the last year, bringing its total number of cities to 25 as of December 2024. D-Mart is adhering to its policy of moderate and measured expansion because the internet business is losing money. D-Mart Ready is continuing to align its business with the growing demand for home delivery as opposed to pick-up. Actually, ‘Home Delivery’ is the only delivery option offered by D-Mart Ready in a few of the towns.

Margin Pressure on the rise
In Q3FY25, D-Mart reported a slight drop in gross margins due to heightened discounting intensity in the FMCG sector. Additionally, D-Mart’s store operating metrics remain muted, with mid-single-digit growth in revenue per square foot. The building of large stores in FY22 and FY23 has maintained revenue/square feet under pressure, even if the SSSG (same-store sales growth) for older, more established stores returned to a high single digit in Q3. This, together with higher operating expenses, has caused D-Mart’s operating leverage to continue to impact margins.

Quick commerce companies Blinkit, Big Basket, and Zepto have quickly expanded their product lines, especially in the grocery sector, and are posing a greater threat to D-Mart. We anticipate that D-Mart’s margin pressures will continue in the near future.

Change in Leadership
Neville Noronha, the managing director and CEO of D-Mart, will leave the company in January 2026. Neville began working at D-Mart in 2004 and was instrumental in developing managing teams, carrying out procedures, and carrying out strategies.

On March 15, 2025, Anshul Asawa will become the Chief Executive Officer designee of D-Mart, succeeding Noronha. After 30 years at Unilever, Anshul, an industry veteran and graduate of IIT Roorkee and IIM Lucknow, will join D-Mart. Anshul has held executive positions in India, Asia, and Europe, where he oversaw the expansion of product categories and created significant responsibilities. In light of the shifting dynamics of the sector, especially the move towards the rapid commerce segment, the Street will closely monitor any adjustments made by the new CEO to the strategy or execution process.

Stock Performance and Valuation
Avenue Supermarts, which operates the retail brand DMart, had its shares fall 5.7% in early trade on Monday, January 13, to a low of Rs 3,474 on the BSE, as investors were unhappy with the company’s Q3 results.

As of right now, the stock’s P/E ratio at the CMP is 68 times FY26 earnings projections.
Proposed leadership changes and increased competition would limit the stock’s upward potential in the medium run. At this point, investors should have reasonable expectations for the stock.

The image added is for representation purposes only

0 Comment

Equities, Market News, Markets, Research, Research Reports, Result Updates - January 10, 2025

IREDA Q3FY25: Robust Loan Growth, Improved Asset Quality YoY, PAT Up 27%

About the stock

IREDA is PSU NBFC engaged in the business of financing green energy projects. Its finances project such as solar, wind power, hydro power etc. GoI has conferred the Navratna status upon IREDA in April 2024. Loan portfolio well diversified across the 23 states and 4 UT in FY24. It contributing major role in fueling the India’s RE taget of 500 GW by 20230.

Robust growth in loan book up 36% YoY /7% half yearly

As on 30 December 2024, loan book stood at 68,960 Cr represent growth of 36% YoY while half-yearly growth was moderate at 8%. This growth led by loan given to state utilities (68% YoY) followed by hydro power at 35%, solar 18% and wind at 3%.

Along with loan book disbursement and sanction grew 25% and 45% to stood at 7,449 Cr and 13,227 Cr respectively.

Asset quality improved YoY but dissapoint QoQ

During the Q3FY25, gross asset quality has improved by 22 bps YoY declined in GNPA stood at 2.68% While QoQ jump 49 bps during the quarter. NNPA down 2 bps YoY to 1.5% but jump 46 bps QoQ despite the surge in provision coverage ratio.

Borrowing jump 39% during the quarter – domestic rise while foreign declined

During H2FY25 company’s borrowing increased by 39% to stood at 57,931 Cr. Dometic borrowing raised 54% to 49,361 Cr while foreign borrowings declined 12%.

In domestic borrowing, bank loan weightage has declined to 45% in Q2FY25 vs 57% in Q3FY24. while money raised through bonds weightage rise to 55% in Q3FY25 vs 43% in Q3FY24. The rising chance of rate cuts will declined the borrowing cost for company as bank loan and bond both equally weight in borrowing.

Within the foreign borrowing, un-hedged portion rise to 26% in Q3FY25 vs 21% in Q3FY24. While hedged portion has declined equally to increased in un-hedged. The surge in un-hedged portion increased the currency risk.

Valuation and key metrics

currently stock is trading at 5.79x its book value while the industry median P/B stood at 2.41x. During the quarter, Yield on loan jump 9 bps to 9.96% while Cost of borrowing decline by 15 bps to 7.68%. This result in surge in spread and NIMs by 23 bps and 13 bps to stood at 2.28% and 3.33% respectively. The cost of borrowinf can further decline in coming quarter as RBI ready to ease monetary policy. Capital Adequacy ratio stood at 19.63% which is above the guidance of RBI but decline by 425 bps YoY.

Q3FY25 Results updates

Interest income increased by 37% YoY (5% QoQ) to 1,654 Cr while interest expense jumped 36% YoY (0% QoQ) to 1,032 Cr. This result in NII grew by 39% YoY (14% QoQ) to 622 Cr. The surge in NII led by Nims expansion and increased in new loan book.

PPOP grew 52% YoY (30% QoQ) to 642 Cr due to lower Opex (down 65% YoY). While PAT surged by 27% YoY and 10% on QoQ basis to stood at 425 Cr.The PAT lowered due to higher growth in provision and tax expenses.

The image added is for representation purposes only

0 Comment

Affordable housing to take a hit in the upcoming Budget

Equities, Markets, Research, Research Reports, Result Updates - November 13, 2024

Repco home Q2FY25: Strong QoQ Surge in Sanctions and Disbursements

About the stock
➡️Repco home finance is registered housing finance company offer individual home loan and loan against property (LAP). Companies target market is Tier 2 and Tier 3 cities and has 48% loan book to salaried segment and rest to non-salaried. Company have regional concentration in south and beyond south its presence in Maharashtra, Gujarat, MP, Orissa, Rajasthan. As of Q4FY24, company have 184 branch and 43 satellite.

Single digit loan book growth while borrowing jump 14% YoY
➡️Repco’s loan book grew 8% YoY (+2% QoQ) to 13,964 Cr led by growth in home loan product. Home loan composition in overall book decline to 74% in Q2FY25 from 76% in Q2FY24 whereas home equity grown to 26% from 24% in Q2FY24.

➡️Sanctions grew 8% YoY while jump 27% QoQ to 926 Cr. While disbursement surged 9% YoY and 27% QoQ to 867 Cr. Sanctions and disbursement deliver solid performance on QoQ basis.

➡️Borrowing growth is double than loan book growth at 14% YoY (+5% QoQ) to 11,463 Cr. Repco has funding mix from National housing bank, commercial bank and repco bank. Commercial banks have 81% weight in overall borrowing.

Book Growth (As on in Cr)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
Loan Book	13,964	12,922	8%	13,701	2%
Disbursement	867	797	9%	680	27%
Sanctions	926	860	8%	727	27%
Borrowing	11,463	10,047	14%	10,914	5%

NII down on contraction in NIMs and muted book growth; PAT boom on lower provision
➡️Interest income grew 7% YoY (+1% QoQ) to 405 Cr due to surge in yield by 30 bps YoY and loan book expansion. NII down 2% YoY and 1% QoQ to 165 Cr on contraction in NIMs by 30 bps due to higher CoF. PPOP grow modest by 2% YoY (-1% QoQ) to 137 Cr due to decline in topline and higher OpEx growth. PAT boom 15% YoY (+7% QoQ) to 112 Cr on lower provision by 1101%.

Years (in Cr)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)	Commentry
Interest income	405.11	376.97	7%	400.71	1%
Interest expenses	239.56	207.46	15%	232.98	3%
NII	165.55	169.51	-2%	167.73	-1%	led by drop in NIMs and muted book growth
Other income	22.87	6.94	230%	15.54	47%
Total Net income	188.42	176.45	7%	183.27	3%
Employee expenses	28.35	25.45	11%	29.05	-2%
Other OpEx	23.33	17.18	36%	16.18	44%
Total Opex	51.68	42.63	21%	45.23	14%
PPOP	136.74	133.82	2%	138.04	-1%	Modest growth on sluggish topline
Provision	-16.02	1.6	-1101%	1.44	-1213%
PBT	152.76	132.22	16%	136.6	12%
Tax expenses	40.25	34.12	18%	31.16	29%
Tax rate	26%	26%	2%	23%	16%
PAT	112.51	98.1	15%	105.44	7%	PAT boom on lower provision and higher other income
PAT%	26%	26%	3%	25%	4%
EPS (in Rs)	17.98	15.68	15%	16.85	7%
No. of equity shares	6	6	0%	6	0%

Asset quality improved – GNPA /NPA down (90 bps/60 bps YoY)
➡️During the quarter, asset quality has improved with the decreased in GNPA and NNPA. GNPA down 90 bps YoY and 30 bps QoQ to stood at 4% but still higher than its peers. While NNPA down 60 bps YoY and 10 bps QoQ to stood at 1.6%. Based on observation salaried segment has lower GNPA (2.1%) while non-salaried has higher GNPA (5.7%).

Asset Quality	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
GNPA	4	4.9	-90	4.3	-30
NNPA	1.6	2.2	-60	1.7	-10

Valuation and key ratio
➡️Currently the stock is trading at 1.00x its book value which is lowest compare it peers and industry median P/BV stood at 2.41x. Company’s NIMs margin has reduced by 30 bps YoY and remain stable QoQ stood at 5.1%. Yield on loan jump 30 bps YoY to stood at 12.1 while CoF grew 40 bps YoY to stood at 8.8%. ROE down 10 bps YoY to 16% while ROA jump 20 bps YoY to 3.3%. company’s capital position remains very strong as CRAR stood at 33.98% which above than the RBI guidelines.

Key metrics	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
Yield	12.1	11.8	30	12	10
CoF	8.8	8.4	40	8.6	20
Spread	3.4	3.4	0	3.4	0
NIMs	5.1	5.4	-30	5.1	0
ROA	3.3	3.1	20	3.1	20
ROE	16	16.1	-10	16.3	-30

The image added is for representation purposes only

0 Comment

Poonawalla Fincorp’s Bold NCD Move: ₹1500 Crore Private Placement

Equities, Markets, Research, Research Reports, Result Updates - November 11, 2024

Ola Q2FY25: Aggressive Product Expansion with 20 New Models Planned

Robust deliveries growth (74% YoY) but disappoint 21% QoQ
➡️Ola has maintained to be leader in EV 2W segment with 33% market share during Q2FY25 despite aggressive competitive action. Their mass portfolio report solid growth momentum from 0 deliveries in Q2FY24 to 42,074 deliveries and 15% growth QoQ. While premium deliveries decline 26% YoY (down 45% QoQ) to 42,074. This makes the overall deliveries growth of 74% YoY but decline by 21% QoQ to 98,619 due to degrowth in premium portfolio.

➡️E2W penetration has reached a critical inflection point, increasing from 5.8% in June 2024 to 7.5% by September 2024. In scooters, penetration surged from 16.1% to 21.4% over the same period. Key states like UP, Rajasthan, Karnataka, and Maharashtra show penetration rates between 25% and 45%, indicating robust adoption trends.

Solid growth in topline led by growth in deliveries and increased in EV penetration in India
➡️Ola report robust growth in revenue grew by 39% YoY while on QoQ basis decline 26% to 1,214 Cr due to the degrowth in premium portfolio deliveries. This growth is attributed to increased in E2W penetration to 7.5% in Sep 2024 from 5.8% in June 2024.

➡️Gross profit surged 341% YoY to 225 Cr despite reduction in subsidy over one last year to 20.6%. Gross margin improved 1300 bps YoY to 19% due to BOM cost reduction driven by Gen 2 platform.

➡️EBITDA turn to be negative of (379 Cr) due to higher operating cost but it shrink from negative of (527 Cr) in Q2FY24. This impacted by exceptional cost of warranty around 64 Cr and IPO and one off cost of 36 Cr. EBITDA margin stood at -63% vs -90% in Q2FY24. EBIT stood at -511 Cr vs -527 Cr in Q2FY24 while margin at -42% vs -60% in Q2FY.

➡️PAT growth muted at 6% YoY to -495 Cr offset by higher operating cost, depreciation and interest expense while other income grew 104% YoY to 100 Cr. PAT margin stood at -41% vs -60% in Q2FY24.

Years	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)	Commentry
Revenue	1,214	873	39%	1,644	-26%	Robust growth on YoY basis but QoQ decline led by degrowth in deliveries

COGS	989	822	20%	1341	-26%
Gross Profit	225	51	341%	303	-26%	Solid growth in GM driven by reduction in BOM cost
Gross Margin %	19%	6%	1300 bps	18%	10 bps
Employee cost	139	113	23%	123	13%
Other expenses	465	373	25%	385	21%
Total OpEx	604	486	24%	508	19%
EBITDA	-379	-435	13%	-205	-85%	EBITDA loss shrink on volume expansion and stable OpEx
EBITDA Margin%	-63%	-90%	2700 bps	-40%	(2200 bps)
Depreciation	132	92	43%	126	5%
EBIT	-511	-527	3%	-331	-54%	EBIT growth muted due to higher depreciation
EBIT Margin%	-42%	-60%	1800 bps	-20%	(2200 bps)
Interest expenses	84	46	83%	67	25%
Other income	100	49	104%	74	35%
PBT	-495	-524	-6%	-324	53%
Tax expenses	0	0		0
Tax Rate%	0%	0%		0%
PAT	-495	-524	6%	-324	-53%	Bottom line profit shrink led by higher other income
PAT Margin%	-41%	-60%	1900 bps	-20%	(2100 bps)
EPS	-1.12	-2.68	58%	-1.35	17%
No. of Shares	441.1	195.5	126%	239.2	84%

The company is executing a long-term growth strategy focused on product diversification, expanding distribution and service infrastructure, and driving technology innovation with vertical integration for better product differentiation and cost savings.

➡️ Product Expansion: The company currently leads the market with the largest EV scooter portfolio, featuring 6 models priced between ₹75,000 and ₹150,000. To strengthen its position, it plans to enter other two- and three-wheeler segments, with a goal to launch 20 products in the next two years—one new product each quarter. In August 2024, it introduced the Roadster motorcycle series, which will begin deliveries in March 2025, covering a broad price range of ₹74,999 to ₹249,999.

➡️ Distribution and Service Network: The company operates 782 owned stores, each with a sales rate 2-3 times the industry average, and aims to increase this network to 2,000 stores by March 2025. It recently launched a ‘Network Partner Program’ in September to drive EV adoption across India, with over 1,000 partners already enrolled and plans to reach 10,000 by the end of 2025. Service capacity has also been expanded to handle higher volumes, with 80% of requests now serviced within a day.

➡️ Technology Innovation: Through advancements in its Gen 2 and Gen 3 platforms, the company has reduced its BOM cost by 22.5% and aims for further savings of 20% over the next year. Key innovations include new battery structures, a magnet less motor, and single-board electronics, giving the company a significant edge in performance and cost efficiency.

The image added is for representation purposes only

0 Comment

Trump Tariffs Jolt Jewellery Stocks: Titan, Kalyan, Senco See Mixed Trade

Equities, Markets, Research, Research Reports, Result Updates - November 7, 2024

Manappuram Q2FY25: solid growth in Gold loan led by higher gold price

About the stock
➡️Manappuram finance Ltd is NBFC engaged in the business of providing gold loan and micro finance loan, vehicle loan etc. Company have strong presence in PAN India with 5,000+ branches.

Solid growth in Gold loan portfolio backed by higher gold prices
➡️Manappuram gold loan portfolio report robust double digit growth of 17% YoY and 3% QoQ to 24,365 Cr led by higher gold prices. While micro finance segment report muted single digit growth of 9% YoY but degrowth 2% QoQ to 10,970 Cr. While other segment such as home loan, vehicle finance and MSME grew 30% YoY, 54% YoY and 13% YoY respectively. The consolidated portfolio grew 17% YoY (+2% QoQ) to 45,716 Cr supported by gold loan with 53% weight in overall AUM portfolio and robust growth.

➡️Consolidated borrowing jump 19% YoY (higher than AUM growth) and remain flat QoQ to 38,476 Cr.

Book Growth (As on)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
AUM (bn)	45,716	38,951	17%	44,932	2%
Borrowings	38,476	32,237	19%	38,463	0%

NII growth backed by stable NIMs; PAT slowdown on higher provision
➡️Interest income grew 24% YoY (+6% QoQ) to 2,541 Cr led by robust growth in overall AUM. NII surged 20% YoY (+5% QoQ) to 1,635 Cr backed by stable net yield. PPOP jump 19% YoY (+5% QoQ) to 1,033 Cr driven by stable operating expenses 2% QoQ. PAT growth slowdown at 2% YoY and 3% QoQ to 572 Cr on higher provision (118% YoY).

Years (In Cr)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)	Commentry
Interest income	2,541	2,054	24%	2,403	6%
Interest expenses	906	689	31%	848	7%
NII	1,635	1,365	20%	1,555	5%	Led by strong AUM growth
Other income	96	120	-20%	109	-12%
Total Net income	1,731	1,485	17%	1,664	4%
Employee expenses	448	375	20%	446	0%
Other OpEx	251	244	3%	236	6%
Total Opex	698	618	13%	682	2%
PPOP	1,033	866	19%	981	5%	grew by lower Opex
Provision	260	120	118%	229	14%
PBT	773	747	3%	753	3%
Tax expenses	201	186	8%	196	2%
Tax rate	26%	25%	4%	26%	0%
PAT	572	561	2%	557	3%	High provision slowdown PAT
PAT%	22%	26%	-16%	22%	-2%
EPS	6.76	6.62	2%	6.57	3%
No. of equity shares	85	85	0%	85	0%

Asset quality deteriorated – jump in GNPA/NNPA
➡️MFL asset quality deteriorated as GNPA and NNPA jump further in quarter. GNPA jump 80 bps YoY and 40 bps QoQ to stood 2.4% while NNPA rise 70 bps YoY and 40 bps QoQ to 2.1%. MFL capital position remains strong as CAR stood at 29%, decline 200 bps YoY.

Asset Quality (%)	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
GNPA	2.4	1.6	80	2	40
NNPA	2.1	1.4	70	1.7	40

Valuation and key ratios
➡️Currently the stock is trading at 1.05x than its book value Rs 148 per share at current market price Rs 154. CoF jump 30 bps YoY but decline 10 bps to 9.2% while net yield rise 10 bps YoY and 20 bps QoQ to stood at 22%. Return profile disappoint as ROE and ROA down 300 bps YoY and 90 bps YoY to stood at 18.6% and 4.4%.

The image added is for representation purposes only

0 Comment

Prestige Group Plans ₹42,000 Crore Housing Launches in FY26 Amid Real Estate Boom

Equities, Markets, Research, Research Reports, Result Updates - November 7, 2024

Aadhar housing Q2FY25: Solid growth in book driven Retail Home and Mortgage Loans

About the stock
➡️Aadhar housing finance Ltd is primarily engaged in the business of providing low income housing finance. They focused on low income housing segment with ticket size of <Rs 15 lakh. Company added 9 new branches in Q2FY25 makes total to 545 branches across pan India.

Aadhar loan book shine backed by both segment home loan and mortgage loan
➡️Aadhar housing’s loan book report double digit growth of 21% YoY (+5% QoQ) to 22,818 Cr led by robust growth across both segment retail home loan and mortgage loan. Retail home loan contribute 74% of overall loan book, growing 18% YoY (+5% QoQ) to 16,991 Cr. while Retail mortgage loan constitute 26% of overall loan book, growing 31%YoY (+6% QoQ) to 5,826 Cr.

➡️Disbursement grew 18% YoY while QoQ boom 36% to 2,036 Cr on healthy growth in both segment. Retail home loan disbursement shine 33% QoQ and 19% YoY to 1,466 Cr while mortgage disbursement jump 43% QoQ and 16% YoY to 570 Cr.

Book Growth (in Cr) (As on)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
Loan Book	22,818	18,885	21%	21,726	5%
R. home loan	16,991	14,449	18%	16,246	5%
R. mortgage loan	5,826	4,436	31%	5,481	6%
Disbursement	2,036	1,725	18%	1,497	36%
R. home loan	1,466	1,233	19%	1,100	33%
R. mortgage loan	570	492	16%	397	43%

NII supported by book expansion and NIMS (up 32 bps YoY)
➡️Interest income grew 20% YoY (6% QoQ) to 673 Cr driven by robust retail book growth while portfolio yield remain flattish. NII increased 20% YoY (+8% QoQ) to 3,87 Cr attributed to NIMs expansion by 32 bps YoY. PPOP grew 20% YoY (+11% QoQ) to 306 Cr thanks to higher other income and stable other OpEx. Profitability comes in line with topline, grew 15% YoY (+14% QoQ) to 697 Cr due to higher provision expense (up 771% YoY) wile down 29 bps QoQ.

Years (in Cr)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)	Commentry
Interest income	673	561	20%	634	6%
Interest expenses	285	239	20%	277	3%
NII	387	322	20%	357	8%	expand on book growth and NIMs
Other income	78	53	47%	62	25%
Total Net income	466	375	24%	420	11%
Employee expenses	101	78	29%	95	7%
Other OpEx	59	43	39%	49	20%
Total Opex	160	121	32%	144	11%
PPOP	306	255	20%	276	11%	No leverage benefit; in line with NII
Provision	13	2	771%	19	-29%
PBT	293	253	16%	257	14%
Tax expenses	65	56	17%	57	14%
Tax rate	22%	22%	1%	22%	0%
PAT	228	197	15%	200	14%	PAT growth on book expansion; leverage muted, provision up
PAT%	30%	32%	-6%	29%	6%
EPS	5.29	5.00	6%	4.69	13%
No. of equity shares	43	39	9%	43	1%

Asset quality remain flattish QoQ
➡️Aadhar’s asset quality has maintain on YoY and QoQ basis. GNPA down 10 bps YoY but remains flat QoQ to 1.3% while NNPA remains flat YoY and QoQ at 0.9%. This is due to the banking’s NPA cycle is already at lowest point at this point of time.

Asset Quality (%)	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
GNPA	1.3	1.4	-10	1.3	0
NNPA	0.9	0.9	0	0.9	0

Valuation and key metrics
➡️Yield on loan remain flat at 14% while CoF jump 40 bps YoY and 10 bps QoQ to 8.1%. This result in expansion in NIMs by 32 bps to 8.94% as of Q2FY25. credit cost remain stable at 2.59% YoY while increased by 22 bps QoQ. This result in decline in spread by 40 bps YoY and 10 bps QoQ to 5.9%. While NIMS jump 32 bps YoY and 20 bps QoQ to 9.1%.

Key metrics (%)	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
Yield	14	14	0	14	0
CoF	8.1	7.7	40	8	10
NIMs	9.1	8.78	32	8.9	20
ROA	4.4	4.6	-20	4.1	30
ROE	15.7	20	-430	15.9	-20
Spread	5.9	6.3	-40	6	-10

The image added is for representation purposes only

0 Comment

FPIs Pour Inflows in June, Pull Back in Early July: What’s Driving the Volatility?

Equities, Markets, Research, Research Reports, Result Updates - November 7, 2024

Chola fin Q2FY25: Robust NII growth backed by healthy growth in book

About the stock
➡️Cholamandalam Investment & Finance Company is one of the premier diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans and Loan against property.

Robust double digit growth in book (33% YoY) driven by vehicle loan, LAP and home loan
➡️Chola fin’s book report a strong double digit growth of 335 YoY (+6% QoQ) to 1,64,642 Cr led by robust growth in vehicle loan, LAP and home loan. Vehicle loan constitute 56% of overall loan book, growing 22% YoY (+4% QoQ ) to 92,012 Cr. While LAP and home loan contribute 20%/10%, growing by 41% YoY (+8% QoQ)/47% YoY (+9% QoQ) to 34,824 Cr/15,892 Cr. While other segment report strong growth but have low weight in overall loan book followed by Consumer and small enterprise loan (up 67% YoY), SME (up 47%) YoY), secured business and personal loan (up 123% YoY).

➡️Disbursement grew muted double didgit growth of 13% YoY and remain flat QoQ to 24,314 Cr due to slowdown in vehicle disbursal. Vehicle disbursement have alomost 50% weight of overall disbursement, report muted 5% YoY growth and degrowth on QoQ basis by 3% to 12,336 Cr. While LAP grew 35% YoY (+11% QoQ) to 4,295 Cr and consumer and small enterprise grew 26% YoY (+3% QoQ) to 3,588 Cr. While this robust growth in LAP and CSEL offset by muted growth in vehicle finance.

➡️Borrowing growth in line with loan book growth by 32% YoY (+5% QoQ) to 1,57,794 Cr while majorly funded by bank loan, debentures and Securitisation.

Book Growth (As on)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
AUM	1,64,642	1,24,246	33%	1,55,442	6%
Disbursement	24,314	21,542	13%	24,332	0%
Borrowings	1,57,794	1,19,470	32%	1,49,902	5%

NII and PAT grew on loan book expansion & NIMs expansion; Leverage muted and provision up
➡️Interest income grew 37% YoY (+7% QoQ) to 5,768 Cr driven by robust loan book growth and expansion in yield by 30 bps YoY. NII increased 35% YoY (+5% QoQ) to 2,713 Cr attributed to NIMs expansion by 10 bps YoY. PPOP grew robust at 35% YoY (+4% QoQ) to 1,922 Cr thanks to higher other income and while operating leverage have no impact. PAT grew 26% YoY (+2% QoQ) to 963 Cr due to higher provision expense (up 56% YoY).

Years (in Cr)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)	Commentry
Interest income	5,767.96	4,220.52	37%	5,375.27	7%
Interest expenses	3,055.13	2,205.20	39%	2,795.65	9%
NII	2,712.83	2,015.32	35%	2,579.62	5%	YoY growth led by AUM growth & NIMs expansion
Other income	524.79	351.37	49%	453.7	16%
Total Net income	3,237.62	2,366.69	37%	3,033.32	7%
Employee expenses	794.65	570.24	39%	683.45	16%
Other OpEx	520.87	375.89	39%	499.95	4%
Total Opex	1315.52	946.13	39%	1183.4	11%
PPOP	1,922.10	1,420.56	35%	1,849.92	4%	Solid growth on book growth; OpEx leverage flat
Provision	623.52	399.81	56%	581.43	7%
PBT	1,298.58	1,020.75	27%	1,268.49	2%
Tax expenses	335.53	258.26	30%	326.26	3%
Tax rate	26%	25%	2%	26%	0%
PAT	963.05	762.49	26%	942.23	2%	PAT growth on book expansion; leverage muted, provisions up
PAT%	15%	17%	-8%	16%	-5%
EPS	11.45	9.27	24%	11.21	2%
No. of equity shares	84.075	82.285	2%	84.06	0%

Asset quality disappoint on QoQ basis (GNPA/NNPA up 21 bps/ 14 bps QoQ)
➡️Chola fin’s asset quality has maintain on YoY basis but decline sequentially. GNPA down 13 bps YoY but jump 21 bps QoQ to 2.83% while NNPA disappoint YoY as well as sequentially by 1 bps/14 bps to 1.59%. Its normal effect due to the lower base on last quarter. Provision coverage ratio decline 280 bps YoY (-100 bps QoQ) to 44.5%.

Asset Quality (%)	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
GNPA	2.83	2.96	-13	2.62	21
NNPA	1.59	1.58	1	1.45	14

Valuation and key metrics
➡️Currently the stock is trading at multiple of 5.06 Price to book value. Yield on loan jump 30 bps YoY (down 10 bps QoQ) to 14.6% while CoF rise 20 bps YoY (up 10 bps QoQ) to 7.1%. This result in expansion in NIMs by 10 bps YoY to 7.5% but decline on QoQ basis by 10 bps.

Key metrics (%)	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
Yield	14.6	14.3	30	14.7	-10
CoF	7.1	6.9	20	7	10
NIMs	7.5	7.4	10	7.6	-10
Credit Cost	1.4	1.3	10	1.5	-10
ROA	2.2	2.4	-20	2.4	-20
ROE			0		0
PCR	44.5	47.3	-280	45.5	-100
CAR	19.5		1950	18.03	147

The image added is for representation purposes only

0 Comment

HUDCO Q3FY25 Results Update: Robust Performance Drives Strong Growth

Equities, Markets, Research, Research Reports, Result Updates - October 30, 2024

HUDCO Q2FY24: Solid loan book growth driven by urban infra

About the stock
▶️Housing and Urban Development Corporation Ltd (HUDCO) is public sector enterprise primarily engaged in the business of financing housing and urban development projects in India. The company headquartered in national capital, New Delhi and operate through 21 regional offices and 11 development offices across India.
Apart from financing business, it also provides consultancy services for government programmes and advising on urban and regional planning, design and development, environmental engineering and social development.

Healthy expansion in loan book (up 36% YoY), While Sanctions and Disbursement grew multiple fold
➡️HUDCO’s loan book has report a solid growth during quarter, growing 36% YoY (+7% Qoq) to 1,11,068 Cr led by strong growth in urban infra book. Urban infra book jumped 11% YoY (+1% QoQ) to 66,857 Cr while affordable housing segment muted at 3% YoY growth and 1% QoQ to 44,211 Cr. This lead to increased the urban infra weight to 60% in overall loan book while affordable housing reduced by same.

➡️Sanctions jump 9.8x fold YoY (+442% QoQ) to 76,472 Cr driven by pure urban infra growth. Sanction under urban infra grew 929% YoY (+442% QoQ) to 76,472 Cr. while affordable housing contribute 0% during the quarter.

➡️Disbursement report solid expansion grew 5.8x YoY (+ 72% QoQ) to 21,699 Cr supported by urban infra segment. Urban infra segment disbursement jump 538% YoY (+65% QoQ) to 20,583 Cr while Affordable housing disbursement grew 124% YoY (+752% QoQ) to 1,116 Cr.

➡️Borrowing grew higher than the loan book growth, grew 47% YoY (+43% QoQ) to 93,364 Cr. Borrowing is the mix of international and domestic sources to meet business growth and reduce the cost of borrowing.

Book Growth (As on)	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
Loan	111068	81594	36%	1,03,815	7%
Urban Infra	66,857	38,674	73%	60,047	11%
Affordable housing	44,211	42,920	3%	43,768	1%
Sanction	76,472	7,808	879%	14,097	442%
Urban Infra	76,472	7,435	929%	14,097	442%
Affordable housing	0	373	-100%	0	#DIV/0!
Disbursement	21,699	3,723	483%	12,625	72%
Urban Infra	20,583	3,225	538%	12,494	65%
Affordable housing	1,116	498	124%	131	752%
Borrowings	93,364.67	63,318.46	47%	65,187.48	43%

NII jump 27% YoY driven book expansion; PAT boom on lower provision and higher other income
➡️Interest income grew 33% YoY (+13% QoQ) to 2,459 Cr led by book expansion while yield down 10 bps YoY to 9.24%. NII jump 27% YoY (+12% QoQ) to 797 Cr led by healthy growth in book while NIMs decline 21 bps YoY and stable QoQ to 3.01%. PPOP increased 32% YoY (+15% QoQ) to 767cr on stable OpEx growth. PAT boom 52% YoY (+23% QoQ) to 689 Cr driven by lower provision (down 749% YoY) and higher other income (up 81% YoY).

Years	Q2FY25	Q2FY24	YoY (%)	Q1FY25	QoQ (%)
Interest income	2,459	1,844	33%	2,175	13%
Interest expenses	1,662	1,217	37%	1,464	14%
NII	797	627	27%	711	12%
Other income	67	37	81%	23	196%
Total Net income	864	664	30%	734	18%
Employee expenses	66	55	19%	40	65%
Other OpEx	31	30	5%	28	14%
Total Opex	97	85	14%	67	44%
PPOP	767	579	32%	666	15%
Provision	-233	-27	749%	-19	1147%
PBT	1,000	606	65%	685	46%
Tax expenses	311	155	101%	127	145%
Tax rate	31%	26%	22%	19%	68%
PAT	689	452	52%	558	23%
PAT%	27%	24%	14%	25%	7%
EPS	3.44	2.26	52%	2.79	23%
No. of equity shares	200	200	0%	200	0%

Asset quality stood best in the industry – GNPA/NPNPA down 132 bps/18 bps YoY
➡️HUDCO’s asset quality stand best in the industry with GNPA and NNPA at 2.04% and 0.31% respectively. GNPA/NNPA decline 132 bps/18 bps YoY and 38 bps/2 bps QoQ. Further private sector book decline to 1.83% from 2,50% in FY24 while Government backed book increased to 98.17% from 97.50% in FY24. This will lead to decline default of loans as government book is highly secured. Provision coverage ratio decline 28 bps and 101 QoQ to stood at 85.6% as of Q2FY25.

Asset Quality	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
GNPA	2.04	3.36	-132	2.42	-38
NNPA	0.31	0.49	-18	0.33	-2

Valuations and key metrics
➡️Currently the stock is trading at 2.53x price to book value. NIMs contract by 21 bps YoY and remain stable QoQ to 3.01% led by the expansion in CoF and decline in yield. ROA jump by 20 bps YoY and 16 bps QoQ to 2.4% while ROE rise 315 bps YoY and 164 bps QoQ to 14.56%. Company capital position CAR down 1614 bps YoY to stood at 57.65% but still above the RBI guidelines.

Key metrics	Q2FY25	Q2FY24	YoY (bps)	Q1FY25	QoQ (bps)
Yield	9.24	9.34	-10	9.06	18
CoF	7.46	7.63	-17	7.36	10
NIMs	3.01	3.22	-21	3	1
ROA	2.4	2.2	20	2.24	16
ROE	14.56	11.41	315	12.92	164
PCR	85.6	85.88	-28	86.61	-101
CAR	57.65	73.79	-1614		5765

The image added is for representation purposes only

0 Comment

Result Updates

Expectation of allocations for Railway Sector to about Rs 3 Lakh Crore

Expectation of allocations for Railway Sector to about Rs 3 Lakh Crore

RIL performance in third quarter supported by performance of consumer businesses

RIL performance in third quarter supported by performance of consumer businesses

D-Mart's Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

D-Mart’s Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

IREDA Q3FY25: Robust Loan Growth, Improved Asset Quality YoY, PAT Up 27%

IREDA Q3FY25: Robust Loan Growth, Improved Asset Quality YoY, PAT Up 27%

Repco home Q2FY25: Strong QoQ Surge in Sanctions and Disbursements

Repco home Q2FY25: Strong QoQ Surge in Sanctions and Disbursements

Ola Q2FY25: Aggressive Product Expansion with 20 New Models Planned

Ola Q2FY25: Aggressive Product Expansion with 20 New Models Planned

Manappuram Q2FY25: solid growth in Gold loan led by higher gold price

Manappuram Q2FY25: solid growth in Gold loan led by higher gold price

Aadhar housing Q2FY25: Solid growth in book driven Retail Home and Mortgage Loans

Aadhar housing Q2FY25: Solid growth in book driven Retail Home and Mortgage Loans

Chola fin Q2FY25: Robust NII growth backed by healthy growth in book

Chola fin Q2FY25: Robust NII growth backed by healthy growth in book

HUDCO Q2FY24: Solid loan book growth driven by urban infra

HUDCO Q2FY24: Solid loan book growth driven by urban infra

Vodafone Idea board approves Rs 25000 crore rights issue

Stamp duty and registration laws for rentals in Maharashtra

What are MIPs and Balanced funds

Alpex Solar Q1 FY26: Stellar Growth Pushes Company to New Peaks

India’s FDI Surge Signals Global Confidence in Tech and Growth

Why you should subscribe to our Newsletter