External broker reports(aggregated public sources), HDFC Securities

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External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Tata Elxsi (TELX) posted a soft quarter with a ramp-down in a Media &amp; Communication client and a delayed program ramp-up in the Transportation vertical</li><li>TELX’s growth has normalized, impacted by market-share loss in the transportation vertical (50% of its revenue) on account of a higher mix of Tier-1s vs</li><li>OEMs, increased captive intensity, business mix challenges in the Healthcare vertical and macro factors impacting media &amp; telco enterprise client spend</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.

Tata Elxsi (TELX) posted a soft quarter with a ramp-down in a Media &amp; Communication client and a delayed program ramp-up in the Transportation verticalTELX’s growth has normalized, impacted by market-share loss in the transportation vertical (50% of its revenue) on account of a higher mix of Tier-1s vsOEMs, increased captive intensity, business mix challenges in the Healthcare vertical and macro factors impacting media &amp; telco enterprise client spendContent 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 Elxsi (Q4FY24): High Quality, Low Growth, High Valuation. Maintain SELL

Thematic (Sector/Industry)

<ul><li>Hindustan Unilever: HUL reported 2% UVG with flat value growth as pricing remained negative (passing on softening RM benefits to consumers)</li><li>Mirroring trends of previous quarters, demand recovery remains gradual with the urban market leading growth with premium portfolio sustaining outperformance over the mass portfolio</li><li>Given the benign input cost environment, local competitive intensity remains high</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.

Hindustan Unilever: HUL reported 2% UVG with flat value growth as pricing remained negative (passing on softening RM benefits to consumers)Mirroring trends of previous quarters, demand recovery remains gradual with the urban market leading growth with premium portfolio sustaining outperformance over the mass portfolioGiven the benign input cost environment, local competitive intensity remains highContent 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: Hindustan Unilever, Axis Bank, Indian Hotels

HSIE Results Daily: Hindustan Unilever, Axis Bank,

<ul><li>We met the management of Tata Elxsi (TELX) to evaluate the demand environment</li><li>The key highlights include (1) strong momentum in the transportation vertical (2) expected recovery post-Q1 in the media &amp; communication and healthcare &amp; life sciences verticals (stronger recovery in the second half of FY24) and (3) operating band within 28-29% PBTM for FY24E notwithstanding investments in capacity expansion</li><li>We increase earnings estimates (~3% for FY25E), factoring in a recovery in revenue growth, but valuation remains expensive</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 met the management of Tata Elxsi (TELX) to evaluate the demand environmentThe key highlights include (1) strong momentum in the transportation vertical (2) expected recovery post-Q1 in the media &amp; communication and healthcare &amp; life sciences verticals (stronger recovery in the second half of FY24) and (3) operating band within 28-29% PBTM for FY24E notwithstanding investments in capacity expansionWe increase earnings estimates (~3% for FY25E), factoring in a recovery in revenue growth, but valuation remains expensiveContent 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 Elxsi: Recovering but Valuation Remains Expensive.  Maintain SELL

<ul><li>IT sector (coverage universe) growth is expected to bottom out in Q4FY24 and recover ‘gradually’ in FY25E</li><li>The slowdown in macro is still a baseline scenario and lower discretionary spending and slower conversion from TCV to revenue is a feature and not a bug—at least in the near term—and deals will be focused on cost optimisation</li><li>Growth divergence will continue within the sector and guidance for FY25E is likely to factor in improved H2 performance.</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.

IT sector (coverage universe) growth is expected to bottom out in Q4FY24 and recover ‘gradually’ in FY25EThe slowdown in macro is still a baseline scenario and lower discretionary spending and slower conversion from TCV to revenue is a feature and not a bug—at least in the near term—and deals will be focused on cost optimisationGrowth divergence will continue within the sector and guidance for FY25E is likely to factor in improved H2 performance.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.

IT Sector (Q4FY24E Results Preview): Transition period from ‘gradually’ to ‘eventually’

India

Tata Elxsi Limited manufactures computers and workstations besides providing system design, software development and integration services. The Group supplies its products to a number of industries, including the automotive, metals, consumer products, finance, IT & Communications, energy, chemicals, engineering, pharmaceuticals, entertainment and agro industries.

Tata Elxsi Ltd (TELX IN)

Tata Elxsi (Q4FY24): High Quality, Low Growth, High Valuation. Maintain SELL

Tata Elxsi (TELX) posted a soft quarter with a ramp-down in a Media & Communication client and a delayed program ramp-up in the Transportation...

HDFC Securities

HSIE Results Daily: Hindustan Unilever, Axis Bank, Indian Hotels

Hindustan Unilever: HUL reported 2% UVG with flat value growth as pricing remained negative (passing on softening RM benefits to consumers)

HDFC Securities

HSIE Results Daily: Hindustan Unilever, Axis Bank,

Hindustan Unilever: HUL reported 2% UVG with flat value growth as pricing remained negative (passing on softening RM benefits to consumers)

HDFC Securities

Tata Elxsi: Recovering but Valuation Remains Expensive. Maintain SELL

We increase earnings estimates (~3% for FY25E), factoring in a recovery in revenue growth, but valuation remains expensive

HDFC Securities

IT Sector (Q4FY24E Results Preview): Transition period from ‘gradually’ to ‘eventually’

IT sector (coverage universe) growth is expected to bottom out in Q4FY24 and recover ‘gradually’ in FY25E. The slowdown in macro is still a...

HDFC Securities