External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

ABB India Limited undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. The Company undertakes projects in the field of energy production, power transmission, transportation, process automation and pollution control. ABB India's products include pollution control equipment, switch gears and high current rectifiers.

<ul><li>ABB India (ABB) reported a strong Q4CY24 result with revenue of INR 33.7bn (+22% YoY), EBITDA of INR 6.6bn (+58% YoY) and PAT of INR 5.3bn (+54% YoY).</li><li>EBITDA margin continued its uptrend to 19.5% for the quarter (+440bps YoY).</li><li>Note that revenue grew 19%, 24%, 22% and 17% in CY21, CY22, CY23 and CY24, respectively.</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.

ABB India (ABB) reported a strong Q4CY24 result with revenue of INR 33.7bn (+22% YoY), EBITDA of INR 6.6bn (+58% YoY) and PAT of INR 5.3bn (+54% YoY).EBITDA margin continued its uptrend to 19.5% for the quarter (+440bps YoY).Note that revenue grew 19%, 24%, 22% and 17% in CY21, CY22, CY23 and CY24, respectively.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.

ABB India - A Strong Quarter Marred by Decline in Order Inflow

Samvardhana Motherson International Ltd / Equity Bottom-Up

Samvardhana Motherson International Limited manufactures and distributes automotive parts. The Company offers products such as HVAC systems, air intake manifolds, highway vehicle cabins, air compressors, and pedal box assembly. Samvardhana Motherson International markets its products worldwide.

Samvardhana Motherson International Ltd (MOTHERSO IN)

<ul><li>Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.7% in Q3FY25, (up ~90bps QoQ) was above consensus’ estimate of 9.2%.</li><li>Consolidated revenue was up 8% YoY, mostly led by inorganic growth amidst muted industry volumes.</li><li>Global demand trends in PV and CV segments are likely to remain muted in the near term.</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.

Samvardhana Motherson International’s (SAMIL) EBITDAM at 9.7% in Q3FY25, (up ~90bps QoQ) was above consensus’ estimate of 9.2%.Consolidated revenue was up 8% YoY, mostly led by inorganic growth amidst muted industry volumes.Global demand trends in PV and CV segments are likely to remain muted in the near term.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.

SAMIL IN - Resilient Performance Amid Challenging Macro Environment

Nexus Select Trust (NST) is a REIT with a portfolio of 17 Grade A urban consumption centers. Its diverse portfolio covers retail malls with a total leasable area of 9.8msf, three office assets (1.3msf), two hospitality assets and a renewable power plant.

<ul><li>The REIT manager of Nexus Select Trust announced the closure of the acquisition of Vega City Mall, a Grade A mall located in south Bengaluru for a total EV of INR 9.1bn (initial purchase cost of INR 8.7bn – funded 100% by debt at 7.7% and balance towards planned capex).</li><li>The REIT manager estimates that the asset may add stabilised NOI of INR 780mn in FY26 and an incremental NDCF accretion of INR 200mn post servicing debt.</li><li>We assume a base rental of INR 117/sq.</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 REIT manager of Nexus Select Trust announced the closure of the acquisition of Vega City Mall, a Grade A mall located in south Bengaluru for a total EV of INR 9.1bn (initial purchase cost of INR 8.7bn – funded 100% by debt at 7.7% and balance towards planned capex).The REIT manager estimates that the asset may add stabilised NOI of INR 780mn in FY26 and an incremental NDCF accretion of INR 200mn post servicing debt.We assume a base rental of INR 117/sq.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.

Nexus Select Trust - Vega City Mall Acquisition Strengthens Presence in Bengaluru

Landmark Cars Limited retails automobiles. The Company offers new and used passenger and luxury cars, as well as provides parts and accessories, repairs and maintenance, finance, and insurance services. Landmark Cars serves customers in India.

<ul><li>Landmark Cars’ (LMC) EBITDAM at 5.6%, was down 20bps QoQ, led by weaker gross margins as service revenues at new outlets is in ramp-up phase.</li><li>LMC added 23 outlets in 9MFY25 (~17% of total outlet count), which added to revenue growth (revenue +25% YoY) and helped diversify with high-growth brands such as M&amp;M, Kia, MG and BYD.</li><li>LMC’s revenue from new outlets in Q3 was ~12% of total, at INR 1.9bn (proforma).</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.

Landmark Cars’ (LMC) EBITDAM at 5.6%, was down 20bps QoQ, led by weaker gross margins as service revenues at new outlets is in ramp-up phase.LMC added 23 outlets in 9MFY25 (~17% of total outlet count), which added to revenue growth (revenue +25% YoY) and helped diversify with high-growth brands such as M&amp;M, Kia, MG and BYD.LMC’s revenue from new outlets in Q3 was ~12% of total, at INR 1.9bn (proforma).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.

Landmark Cars - New Store Additions to Drive Growth Ahead

Lloyds Metals & Energy / Equity Bottom-Up

Lloyds Metals and Energy Ltd. manufactures sponge iron.  The Company also operates a cogeneration waste heat recovery plant to recover heat from its kilns.

<ul><li>We initiate coverage on Lloyd Metals and Energy (LMEL) with BUY recommendation.</li><li>Key points: 1) Structural iron ore cost advantage compared to peers; 2) capex of INR 327bn for 4.2mpta steel plant likely to be value accretive; 3) various cost initiatives may provide a cumulative benefit of USD 2.4bn over the next 10 years; 4) acquisition of TEIL likely to be cost efficient; and 5) superior returns vs peers.</li><li>Going ahead, we expect EBITDA/PAT CAGR (FY24-31E) of 35% and RoE/RoCE in excess of 23% (best among steel peers).</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.

We initiate coverage on Lloyd Metals and Energy (LMEL) with BUY recommendation.Key points: 1) Structural iron ore cost advantage compared to peers; 2) capex of INR 327bn for 4.2mpta steel plant likely to be value accretive; 3) various cost initiatives may provide a cumulative benefit of USD 2.4bn over the next 10 years; 4) acquisition of TEIL likely to be cost efficient; and 5) superior returns vs peers.Going ahead, we expect EBITDA/PAT CAGR (FY24-31E) of 35% and RoE/RoCE in excess of 23% (best among steel peers).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.

Lloyds Metals and Energy - Catch It Early, Catch It Young