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. 

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

<ul><li>Multiple levers to ensure margin improvement: DCB’s NIMs contracted sharply owing to (i) one-offs owing to regulatory change which continued into Q2FY25, (ii) reclassification of penal interest as penal charges, (iii) conscious growth slowdown in the high-yielding microfinance book (~16% mix) owing to elevated sectoral stress and (iv) pursuing opportunistic lending in lower-yielding lending.</li><li>The management does not expect the one-off to repeat in H2FY25.</li><li>Additionally, DCB is eyeing to improve the average ticket size in its overdraft proposition alongside improving the share of better-yielding LAP loans which should provide support to lending yields. </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.

Multiple levers to ensure margin improvement: DCB’s NIMs contracted sharply owing to (i) one-offs owing to regulatory change which continued into Q2FY25, (ii) reclassification of penal interest as penal charges, (iii) conscious growth slowdown in the high-yielding microfinance book (~16% mix) owing to elevated sectoral stress and (iv) pursuing opportunistic lending in lower-yielding lending.The management does not expect the one-off to repeat in H2FY25.Additionally, DCB is eyeing to improve the average ticket size in its overdraft proposition alongside improving the share of better-yielding LAP loans which should provide support to lending yields. 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.

DCB Bank Ltd. - NIMs Bottom-Out; Pushing for Sustainable RoA of 1% from FY26!

Thematic (Sector/Industry)

<ul><li>The systemic credit growth (as of 20th Sep’24) continued to remain healthy at 13% YoY.</li><li>This growth continues to be led by Retail and SMEs, while corporate credit continues to remain sluggish.</li><li>The deceleration in credit growth is most likely primarily amongst the private sector banks as they aim to reduce their LDR and maintain them at balance levels. </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 systemic credit growth (as of 20th Sep’24) continued to remain healthy at 13% YoY.This growth continues to be led by Retail and SMEs, while corporate credit continues to remain sluggish.The deceleration in credit growth is most likely primarily amongst the private sector banks as they aim to reduce their LDR and maintain them at balance levels. 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.

Q2FY25 Earnings Preview - Banks, Financial Services and Insurance

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

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.

<ul><li>Larsen &amp; Toubro: Larsen &amp; Toubro (LT) reported revenue/EBITDA/APAT at INR 551.2/56.2/27.8bn, a beat/(miss) of 7.6/0.7/(6.6)%</li><li>P&amp;M margins came in at 7.6% (+20bps YoY) and LT expects to maintain a positive YoY margin expansion trend in ensuing quarters and retained 8.2-8.25% guidance for FY25</li><li>Despite Q1FY25 being an election quarter/lower labour availability, LT reported strong 15% revenue growth and maintained 15/10% revenue/order inflow guidance for FY25</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.

Larsen &amp; Toubro: Larsen &amp; Toubro (LT) reported revenue/EBITDA/APAT at INR 551.2/56.2/27.8bn, a beat/(miss) of 7.6/0.7/(6.6)%P&amp;M margins came in at 7.6% (+20bps YoY) and LT expects to maintain a positive YoY margin expansion trend in ensuing quarters and retained 8.2-8.25% guidance for FY25Despite Q1FY25 being an election quarter/lower labour availability, LT reported strong 15% revenue growth and maintained 15/10% revenue/order inflow guidance for FY25Content 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.

HSIE Results Daily: Larsen & Toubro, Axis Bank, SBI Life Insurance, SRF, Petronet LNG

<ul><li>Disbursements de-grew by 2/21% YoY/QoQ. Advances growth was healthy at 19/3% YoY/QoQ (Mortgages +21% YoY, AIB +29% YoY, Gold loans +9% YoY while Corporate growth was muted at +1% YoY).</li><li>Deposits growth was equally healthy at 20/5% YoY/QoQ. TDs growth was stronger at 6% QoQ vs. CASA deposit growth of 2% QoQ.</li><li>CASA Ratio contracted to 25.4% vs. 26% QoQ. C-D Ratio stood at 81.6% vs. 82.9% QoQ.</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.

Disbursements de-grew by 2/21% YoY/QoQ. Advances growth was healthy at 19/3% YoY/QoQ (Mortgages +21% YoY, AIB +29% YoY, Gold loans +9% YoY while Corporate growth was muted at +1% YoY).Deposits growth was equally healthy at 20/5% YoY/QoQ. TDs growth was stronger at 6% QoQ vs. CASA deposit growth of 2% QoQ.CASA Ratio contracted to 25.4% vs. 26% QoQ. C-D Ratio stood at 81.6% vs. 82.9% QoQ.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.

DCB Bank Ltd.  - NIMs Impacted By One-Offs; RoAs Likely to Be Capped at 1% till FY26E!

<ul><li>Given the rising competitive intensity for low-cost and granular deposits facing the banking system, loan-deposit ratios at historical highs, and expected rate cuts towards the back-end of FY25, we believe banks are faced with the challenge of quality deposit mobilisation, elevated funding costs (lagged deposit re-pricing) and softer incremental spreads</li><li>As banks and NBFCs navigate the growth-margin trade-off, we argue that the combination of lower growth and lower spreads is likely to keep valuations under check, especially of mid-sized, high-growth franchises</li><li>While we expect system-wide growth to decelerate by 90-100 bps from FY24 levels, we are conservative on incremental spreads across our coverage universe, pencilling in 50bps of rate cuts starting Q4FY25 (blended FY25 NIMs at 12-15bps below FY24)</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.

Given the rising competitive intensity for low-cost and granular deposits facing the banking system, loan-deposit ratios at historical highs, and expected rate cuts towards the back-end of FY25, we believe banks are faced with the challenge of quality deposit mobilisation, elevated funding costs (lagged deposit re-pricing) and softer incremental spreadsAs banks and NBFCs navigate the growth-margin trade-off, we argue that the combination of lower growth and lower spreads is likely to keep valuations under check, especially of mid-sized, high-growth franchisesWhile we expect system-wide growth to decelerate by 90-100 bps from FY24 levels, we are conservative on incremental spreads across our coverage universe, pencilling in 50bps of rate cuts starting Q4FY25 (blended FY25 NIMs at 12-15bps below FY24)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.

Leveraged Financials: The Liquidity Conundrum

India

DCB Bank Limited is a full service commercial bank. The Bank offers consumer banking, commercial banking, and treasury operations.

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DCB Bank Ltd (DCBB IN)

DCB Bank Ltd. - NIMs Bottom-Out; Pushing for Sustainable RoA of 1% from FY26!

Additionally, DCB is eyeing to improve the average ticket size in its overdraft proposition alongside improving the share of better-yielding LAP...

Axis Direct

Q2FY25 Earnings Preview - Banks, Financial Services and Insurance

Mirroring the systemic credit growth trends, we expect banks under our coverage (incl. SFBs) to register credit growth of ~14/4% YoY/QoQ.

Axis Direct

HSIE Results Daily: Larsen & Toubro, Axis Bank, SBI Life Insurance, SRF, Petronet LNG

Larsen & Toubro: Larsen & Toubro (LT) reported revenue/EBITDA/APAT at INR 551.2/56.2/27.8bn, a beat/(miss) of 7.6/0.7/(6.6)%

HDFC Securities

DCB Bank Ltd. - NIMs Impacted By One-Offs; RoAs Likely to Be Capped at 1% till FY26E!

Disbursements de-grew by 2/21% YoY/QoQ. Advances growth was healthy at 19/3% YoY/QoQ (Mortgages +21% YoY, AIB +29% YoY, Gold loans +9% YoY while...

Axis Direct

Leveraged Financials: The Liquidity Conundrum

Our hypothesis remains anchored around strong retail deposit franchises and declining spreads over the next 12 months, coupled with the...

HDFC Securities

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