External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Thematic (Sector/Industry)

<ul><li>The Q2FY25 earnings season was marked by a) Good rainfall across the country 2) Stronger E-way bill, GST collection and cargo traffic, 3) Resilient macro-economic outlook, 4) Full-year Union Budget, 5) Moderation in power demand, PMI manufacturing and Services and 6) Volatile Oil prices.</li><li>Based on the normal monsoon, higher reservoir levels, government budgetary allocations are indicating green shoots in the rural recovery for the second half of FY25.</li><li>Earnings growth for the quarter will be driven by Financials, IT, Telecom, Healthcare and Utilities while earnings for cyclical sectors like Oil &amp; Gas and Metals is likely to see some decline. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The Q2FY25 earnings season was marked by a) Good rainfall across the country 2) Stronger E-way bill, GST collection and cargo traffic, 3) Resilient macro-economic outlook, 4) Full-year Union Budget, 5) Moderation in power demand, PMI manufacturing and Services and 6) Volatile Oil prices.Based on the normal monsoon, higher reservoir levels, government budgetary allocations are indicating green shoots in the rural recovery for the second half of FY25.Earnings growth for the quarter will be driven by Financials, IT, Telecom, Healthcare and Utilities while earnings for cyclical sectors like Oil &amp; Gas and Metals is likely to see some decline. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Equity Bottom-Up

Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in diverse industries. The Company, caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, and utility industries.

<ul><li>Execution prowess: TCS has demonstrated commendable execution even during challenging times by increasing client engagement.</li><li>This has helped the company report encouraging margin expansion.</li><li>Demand slowly picking up: BFSI and Retail verticals reported moderated growth. However, there are some green shoots visible alongside increased client engagement.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Execution prowess: TCS has demonstrated commendable execution even during challenging times by increasing client engagement.This has helped the company report encouraging margin expansion.Demand slowly picking up: BFSI and Retail verticals reported moderated growth. However, there are some green shoots visible alongside increased client engagement.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Tata Consultancy Services Ltd - Superior Execution; Demand Shaping-Up

<ul><li>Union Budget 2024-25 – Something for Everyone; Level-playing Field for Major Asset Classes: The Finance Minister has set the stage for "Viksit Bharat" through the comprehensive development of the Indian economy, emphasizing infrastructure enhancement, fiscal prudence, and welfare schemes for rural India.</li><li>The focus is on inclusive growth, highlighting four major pillars: Youth, Women, Poor, and Farmers.</li><li>The government's commitment to fiscal prudence is a significant signal to the markets, even with increased allocations to rural and welfare schemes. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Union Budget 2024-25 – Something for Everyone; Level-playing Field for Major Asset Classes: The Finance Minister has set the stage for "Viksit Bharat" through the comprehensive development of the Indian economy, emphasizing infrastructure enhancement, fiscal prudence, and welfare schemes for rural India.The focus is on inclusive growth, highlighting four major pillars: Youth, Women, Poor, and Farmers.The government's commitment to fiscal prudence is a significant signal to the markets, even with increased allocations to rural and welfare schemes. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Auto OEMs: We expect Revenue/EBITDA/PAT for our OEM coverage universe to grow by ~5.5%/8.9%/10.6% YoY along with ~47 bps improvement in EBITDA margin. The growth will be driven by i) Doubledigit volume growth in 2Ws, ii) low to mid-single digit growth for PVs/tractors partially offset by iii) YoY Decline in the CV volumes respectively. The YoY EBITDA margin expansion will be led by richer product mix, RM softening and price hikes taken over the last one year.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto OEMs: We expect Revenue/EBITDA/PAT for our OEM coverage universe to grow by ~5.5%/8.9%/10.6% YoY along with ~47 bps improvement in EBITDA margin. The growth will be driven by i) Doubledigit volume growth in 2Ws, ii) low to mid-single digit growth for PVs/tractors partially offset by iii) YoY Decline in the CV volumes respectively. The YoY EBITDA margin expansion will be led by richer product mix, RM softening and price hikes taken over the last one year.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cross Asset Strategy

<ul><li>The ‘status quo’ on policy rates and change in stance from ‘Withdrawal of Accommodation’ to ‘Neutral’ was on expected lines.</li><li>This has set the stage for a rate cut and we expect a rate cut announcement in the Feb’25 meeting.</li><li>The regulator has maintained its growth and inflation forecast for FY25 with a few minor tweaks. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The ‘status quo’ on policy rates and change in stance from ‘Withdrawal of Accommodation’ to ‘Neutral’ was on expected lines.This has set the stage for a rate cut and we expect a rate cut announcement in the Feb’25 meeting.The regulator has maintained its growth and inflation forecast for FY25 with a few minor tweaks. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Event Update: RBI Monetary Policy - October 2024

Axis Direct
External broker reports(aggregated public sources)

Q2FY25 - Consolidated Earnings Preview

Based on our and consensus estimates, we forecast Nifty to deliver a Revenue/EBITDA/PAT growth of 4.5%/6%/4.1% respectively for the quarter.

Axis Direct

Tata Consultancy Services Ltd - Superior Execution; Demand Shaping-Up

Execution prowess: TCS has demonstrated commendable execution even during challenging times by increasing client engagement.

Axis Direct

Axis Multi Asset Strategy: October 2024

The government's commitment to fiscal prudence is a significant signal to the markets, even with increased allocations to rural and welfare schemes.

Axis Direct

Q2FY25 Earnings Preview - Automobile

We prefer TVS Motors, Heromotocorp (and M&M – under soft coverage) in the OEMs; and Endurance Technologies, Sansera Engineering in the Auto...

Axis Direct

Event Update: RBI Monetary Policy - October 2024

The ‘status quo’ on policy rates and change in stance from ‘Withdrawal of Accommodation’ to ‘Neutral’ was on expected lines. This has set the stage...

Axis Direct