External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

External broker reports(aggregated public sources)

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

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Equity Bottom-Up

Equitas Small Finance Bank  / Equity Bottom-Up

Equitas Small Finance Bank Limited operates as a bank. The Bank offers savings accounts, fixed deposits, loans, debit and credit cards, investment, insurance, online services, and other related activities. Equitas Small Finance Bank serves clients in India.

Equitas Small Finance Bank  (EQUITASB IN)

<ul><li>Emkay Global Financial's research report onEquitas Small Finance Bank Equitas SFB continues to report subdued credit growth at 20% YoY mainly due to slower growth in the new CV and NBFC segments, which coupled with elevated funding cost has led to further deterioration in NIM by 20bps QoQ to 8.2%.</li><li>However, higher other income led to a 4% beat on PAT at Rs2.1bn/1.9% RoA.</li><li>The bank has made one-off additional provisions (Rs110mn) due to recognition of co-borrower as NPA, and ESOPs (Rs220mn), while reverse retirement provisions are to the tune of Rs80mn, adjusted for which PAT would have been higher at Rs2.3bn/RoA at 2.15%.</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.

Emkay Global Financial's research report onEquitas Small Finance Bank Equitas SFB continues to report subdued credit growth at 20% YoY mainly due to slower growth in the new CV and NBFC segments, which coupled with elevated funding cost has led to further deterioration in NIM by 20bps QoQ to 8.2%.However, higher other income led to a 4% beat on PAT at Rs2.1bn/1.9% RoA.The bank has made one-off additional provisions (Rs110mn) due to recognition of co-borrower as NPA, and ESOPs (Rs220mn), while reverse retirement provisions are to the tune of Rs80mn, adjusted for which PAT would have been higher at Rs2.3bn/RoA at 2.15%.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.

Equitas Small Finance Bank - Asset Quality, Margins Remain an Irritant

LTIMindtree Limited provides information technology services and solutions. The Company offers analytics and information management, enterprise integration, applications management, cloud computing, testing, and consulting services, as well as geographical information and manufacturing execution systems. LTIMindtree serves customers worldwide.

<ul><li>Emkay Global Financial's research report onLTIMindtree LTIMindtree reported weak results for a second quarter in a row – revenue declined 1.3% QoQ (-1.3% cc) compared with our estimate of a 0.5% dip.</li><li>Revenue growth was impacted by continued softness in discretionary spending and cancellation of a couple of projects in BFSI.</li><li>EBITM declined by 70bps QoQ to 14.7%, also falling short of our expectations of 15%, hit by headwinds from project cancellations, higher SG&amp;A expenses, and depreciation.</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.

Emkay Global Financial's research report onLTIMindtree LTIMindtree reported weak results for a second quarter in a row – revenue declined 1.3% QoQ (-1.3% cc) compared with our estimate of a 0.5% dip.Revenue growth was impacted by continued softness in discretionary spending and cancellation of a couple of projects in BFSI.EBITM declined by 70bps QoQ to 14.7%, also falling short of our expectations of 15%, hit by headwinds from project cancellations, higher SG&amp;A expenses, and depreciation.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.

LTIMindtree - Another Weak Quarter; Awaiting Growth Recovery

Mahindra & Mahindra Fin Services Ltd. / Equity Bottom-Up

Mahindra & Mahindra Financial Services Limited is a finance company that provides finance to prospective buyers of Mahindra range of utility vehicles and tractors.  The Company extends finance through hire purchase/loan and lease modes.  Mahindra & Mahindra has a network of branches located across India.

Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

<ul><li>Emkay Global Financial's research report onMahindra Finance On 22-Apr-2024, MMFS informed the exchanges that it has detected a fraud in one of its branches in the Northeast that involved forged KYC documents for retail vehicle loan disbursements, thus leading to embezzlement of Company’s funds.</li><li>The company estimates that the impact of this fraud is unlikely to exceed Rs1.5bn, which is relatively manageable at ~6% of FY24 PBT; however, this incident, yet again, brings the sanctity of Company’s processes under a cloud.</li><li>The event will affect investor confidence in MMFS at least for now.</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.

Emkay Global Financial's research report onMahindra Finance On 22-Apr-2024, MMFS informed the exchanges that it has detected a fraud in one of its branches in the Northeast that involved forged KYC documents for retail vehicle loan disbursements, thus leading to embezzlement of Company’s funds.The company estimates that the impact of this fraud is unlikely to exceed Rs1.5bn, which is relatively manageable at ~6% of FY24 PBT; however, this incident, yet again, brings the sanctity of Company’s processes under a cloud.The event will affect investor confidence in MMFS at least for now.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.

Mahindra Finance - Sizable Fraud Detected in Branch in the Northeast

Kotak Mahindra Bank Limited is a full service commercial bank. The Bank offers a wide range of products and services such as personal, commercial, and corporate banking services, including deposit accounts, loans, and investments. Kotak Mahindra Bank serves customers in India.

<ul><li>Emkay Global Financial's research report onKotak Mahindra Bank The RBI has barred Kotak Mahindra Bank (KMB) from onboarding new customers via online/mobile banking channels or issuing new credit cards, mainly due to unaddressed supervisory concerns emerging from the Regulator’s IT examination for FY22/23 and from the frequent tech-outages (latest being on 15-Apr-2024).</li><li>Notably, similar punitive action was taken earlier in case of HDFCB.</li><li>The restrictions will be reviewed upon completion of external audit and corrective action plan to RBI’s satisfaction which typically takes 6-12 months.</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.

Emkay Global Financial's research report onKotak Mahindra Bank The RBI has barred Kotak Mahindra Bank (KMB) from onboarding new customers via online/mobile banking channels or issuing new credit cards, mainly due to unaddressed supervisory concerns emerging from the Regulator’s IT examination for FY22/23 and from the frequent tech-outages (latest being on 15-Apr-2024).Notably, similar punitive action was taken earlier in case of HDFCB.The restrictions will be reviewed upon completion of external audit and corrective action plan to RBI’s satisfaction which typically takes 6-12 months.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.

Kotak Mahindra Bank - RBI’s Ban on Online/Card Customer Acquisition to Hurt Growth

Hero MotoCorp Ltd. designs, manufactures and distributes motorcycles. The Company's products also include motorcycle parts and accessories.

<ul><li>Emkay Global Financial's research report onHero MotoCorp HMCL’s stock price has corrected 11% from the recent highs, even as newly launched Xtreme 125R in the fast-growing 125cc motorcycle category has been received well (per dealer checks), and led to reversal in market share (15.7% in Mar-24 vs. 9.7% in Dec-23; peak share of 50%).</li><li>Product action coupled with sustenance of the dom.</li><li>2W growth story (Apr-24 MTD retails up ~26%) and positive initial outlook for monsoons (key rural demand trigger) prompt us to build-in 12% EPS CAGR over FY24E-26E (upgrade FY25E, FY26E EPS by ~4.5% each).</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.

Emkay Global Financial's research report onHero MotoCorp HMCL’s stock price has corrected 11% from the recent highs, even as newly launched Xtreme 125R in the fast-growing 125cc motorcycle category has been received well (per dealer checks), and led to reversal in market share (15.7% in Mar-24 vs. 9.7% in Dec-23; peak share of 50%).Product action coupled with sustenance of the dom.2W growth story (Apr-24 MTD retails up ~26%) and positive initial outlook for monsoons (key rural demand trigger) prompt us to build-in 12% EPS CAGR over FY24E-26E (upgrade FY25E, FY26E EPS by ~4.5% each).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.

Hero MotoCorp - Upgrade to BUY on New Launch Success

Emkay Global Financial Services Limited
External broker reports(aggregated public sources)

Equitas Small Finance Bank - Asset Quality, Margins Remain an Irritant

The bank has made one-off additional provisions (Rs110mn) due to recognition of co-borrower as NPA, and ESOPs (Rs220mn), while reverse retirement...

Emkay

LTIMindtree - Another Weak Quarter; Awaiting Growth Recovery

EBITM declined by 70bps QoQ to 14.7%, also falling short of our expectations of 15%, hit by headwinds from project cancellations, higher SG&A...

Emkay

Mahindra Finance - Sizable Fraud Detected in Branch in the Northeast

The company estimates that the impact of this fraud is unlikely to exceed Rs1.5bn, which is relatively manageable at ~6% of FY24 PBT

Emkay

Kotak Mahindra Bank - RBI’s Ban on Online/Card Customer Acquisition to Hurt Growth

The restrictions will be reviewed upon completion of external audit and corrective action plan to RBI’s satisfaction which typically takes 6-12...

Emkay

Hero MotoCorp - Upgrade to BUY on New Launch Success

2W growth story (Apr-24 MTD retails up ~26%) and positive initial outlook for monsoons (key rural demand trigger) prompt us to build-in 12% EPS...

Emkay