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External broker reports(aggregated public sources)

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.

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

<ul><li>Bajaj Auto: Bajaj Auto’s Q3FY25 EBITDA margin at 20.2% was ahead of our estimate of 19.9% and in line with the Bloomberg consensus estimate of 20.2%</li><li>Though the company has ramped up well in the e2W and e3W segments, we remain cautious due to the following concerns: 1) higher competitive intensity in the EV segment is leading to higher discounting, 2) while introduction of the e-rickshaw is expected to aid growth, we remain wary of the margins in this price sensitive segment, 3) the company is facing growth challenges in the CNG bike segment considering that the major benefits are attained by customers who are driving a significant distance per day, 4) investments required in the captive financing subsidiary could be higher than expected, 5) additional investments may be required in PMAG to support it financially, 6) exports recovery continues to be gradual</li><li>Having said that, the negatives could be offset by better operating leverage and forex tailwinds</li><li>We value the core business of the company at 21x Dec-26 EPS, and maintain our REDUCE rating. TVS Motor: TVS Motors’ Q3FY25 EBITDA margin at 11.9% was above our estimate of 11.3%, driven by sustained cost reduction initiatives taken by the management</li><li>Going forward, management expects the company to continue outperforming the industry and expects better operating leverage, strong product portfolio and sustained cost reduction initiatives to continue to drive margin expansion</li><li>It indicated large potential for the exports segment as its recent focus on the Latin American markets should start paying off, along with entry into Europe and other regions globally</li><li>It also strives to ramp up sales of the e2W in the global markets</li><li>However, a concern remains for higher investments being made towards its subsidiaries, which includes investments for development of the Norton bike portfolio as well as towards e-bikes</li><li>We remain cautious on the product development of the Norton bikes as a shift towards the Euro 5+ norms could lead to designing and costing challenges</li><li>We value the company’s core business at 29x Dec-26 EPS, leading to a target price of Rs 2,620, and maintain our ADD rating. Federal Bank: Federal Bank’s (FB) Q3FY25 earnings were below our estimates on account of accelerated NPA provisioning and muted growth on both sides of the balance sheet, even as the operating performance stayed healthy</li><li>Deposit growth (+11% YoY, -1% QoQ) was sub-par while the CASA ratio was stable at 30.2% as the bank (under the new CEO) aligned itself to focus on improving the quality, granularity, and pricing of deposits</li><li>Similarly, to improve its pricing power on the asset side, FB has guided for scaling its medium- to high-yielding asset segments (largely secured) and increasing its mix of fixed-rate loans</li><li>While we await more details from the upcoming Analyst Meet on FB’s strategic shift, our initial analysis of management commentary suggests that the bank is focused on monetising its balance sheet strengths and reflate profitability, while also enhancing the quality of its earnings</li><li>We cut our FY25/FY26E earnings by ~9%/6%, factoring in higher provisioning and lower growth, offset by stronger margins and better operating leverage</li><li>We maintain BUY, with a revised TP of INR220 (1.4x Sep-26 ABVPS). Petronet LNG: Our REDUCE recommendation on Petronet LNG (PLNG) with a revised TP of INR 295 is based on (1) limited visibility of near-term earnings growth, (2) an increased capex outlook, and (3) subdued return ratios resulting from a high capex cycle anticipated over the next five years</li><li>Q3FY25 reported EBITDA of INR 12.4bn (-27% YoY, +4% QoQ) and PAT of INR 8.6bn (-27% YoY, +2% QoQ), ahead of our estimates due to higher than expected inventory gains in the quarter</li><li>Volumes were at 228tbtu (-2% YoY, -5% QoQ). Mahindra &amp; Mahindra Financial Services: MMFS’s Q3FY25 earnings were higher than our estimates, due to reversal of provisions based on the updated ECL model, while NII/PPoP was lower than our estimates</li><li>Business momentum remained muted (disbursals up by 7% YoY), due to subdued demand, particularly in pre-owned vehicles and CVs, leading to loan growth of 19% YoY</li><li>Asset quality improved marginally with GS-II+GS-III at 10.2% (Q2FY25: 10.3%), although the write-offs were higher (1.6% annualised)</li><li>MMFS is seeking to add levers for RoA reflation through higher fee income (credit cards, insurance distribution etc.), cost optimisation through tech transformation, rejig in processes, etc., along with steady credit costs (~1.3%-1.5%) through its collection/recovery efforts</li><li>However, the stability in earnings profile amidst the current macro environment, along with limited visibility of RoA reflation to 2.5%, remains a key impediment for re-rating</li><li>We revise our FY25/FY26 earnings estimates to factor in lower loan growth and NIM compression, offset by lower credit costs during FY25, we maintain ADD with a revised SOTP-based TP of INR290 (implied standalone entity at 1.5x Sep-26 ABVPS).</li></ul><p><em>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.</em></p>

Bajaj Auto: Bajaj Auto’s Q3FY25 EBITDA margin at 20.2% was ahead of our estimate of 19.9% and in line with the Bloomberg consensus estimate of 20.2%Though the company has ramped up well in the e2W and e3W segments, we remain cautious due to the following concerns: 1) higher competitive intensity in the EV segment is leading to higher discounting, 2) while introduction of the e-rickshaw is expected to aid growth, we remain wary of the margins in this price sensitive segment, 3) the company is facing growth challenges in the CNG bike segment considering that the major benefits are attained by customers who are driving a significant distance per day, 4) investments required in the captive financing subsidiary could be higher than expected, 5) additional investments may be required in PMAG to support it financially, 6) exports recovery continues to be gradualHaving said that, the negatives could be offset by better operating leverage and forex tailwindsWe value the core business of the company at 21x Dec-26 EPS, and maintain our REDUCE rating. TVS Motor: TVS Motors’ Q3FY25 EBITDA margin at 11.9% was above our estimate of 11.3%, driven by sustained cost reduction initiatives taken by the managementGoing forward, management expects the company to continue outperforming the industry and expects better operating leverage, strong product portfolio and sustained cost reduction initiatives to continue to drive margin expansionIt indicated large potential for the exports segment as its recent focus on the Latin American markets should start paying off, along with entry into Europe and other regions globallyIt also strives to ramp up sales of the e2W in the global marketsHowever, a concern remains for higher investments being made towards its subsidiaries, which includes investments for development of the Norton bike portfolio as well as towards e-bikesWe remain cautious on the product development of the Norton bikes as a shift towards the Euro 5+ norms could lead to designing and costing challengesWe value the company’s core business at 29x Dec-26 EPS, leading to a target price of Rs 2,620, and maintain our ADD rating. Federal Bank: Federal Bank’s (FB) Q3FY25 earnings were below our estimates on account of accelerated NPA provisioning and muted growth on both sides of the balance sheet, even as the operating performance stayed healthyDeposit growth (+11% YoY, -1% QoQ) was sub-par while the CASA ratio was stable at 30.2% as the bank (under the new CEO) aligned itself to focus on improving the quality, granularity, and pricing of depositsSimilarly, to improve its pricing power on the asset side, FB has guided for scaling its medium- to high-yielding asset segments (largely secured) and increasing its mix of fixed-rate loansWhile we await more details from the upcoming Analyst Meet on FB’s strategic shift, our initial analysis of management commentary suggests that the bank is focused on monetising its balance sheet strengths and reflate profitability, while also enhancing the quality of its earningsWe cut our FY25/FY26E earnings by ~9%/6%, factoring in higher provisioning and lower growth, offset by stronger margins and better operating leverageWe maintain BUY, with a revised TP of INR220 (1.4x Sep-26 ABVPS). Petronet LNG: Our REDUCE recommendation on Petronet LNG (PLNG) with a revised TP of INR 295 is based on (1) limited visibility of near-term earnings growth, (2) an increased capex outlook, and (3) subdued return ratios resulting from a high capex cycle anticipated over the next five yearsQ3FY25 reported EBITDA of INR 12.4bn (-27% YoY, +4% QoQ) and PAT of INR 8.6bn (-27% YoY, +2% QoQ), ahead of our estimates due to higher than expected inventory gains in the quarterVolumes were at 228tbtu (-2% YoY, -5% QoQ). Mahindra &amp; Mahindra Financial Services: MMFS’s Q3FY25 earnings were higher than our estimates, due to reversal of provisions based on the updated ECL model, while NII/PPoP was lower than our estimatesBusiness momentum remained muted (disbursals up by 7% YoY), due to subdued demand, particularly in pre-owned vehicles and CVs, leading to loan growth of 19% YoYAsset quality improved marginally with GS-II+GS-III at 10.2% (Q2FY25: 10.3%), although the write-offs were higher (1.6% annualised)MMFS is seeking to add levers for RoA reflation through higher fee income (credit cards, insurance distribution etc.), cost optimisation through tech transformation, rejig in processes, etc., along with steady credit costs (~1.3%-1.5%) through its collection/recovery effortsHowever, the stability in earnings profile amidst the current macro environment, along with limited visibility of RoA reflation to 2.5%, remains a key impediment for re-ratingWe revise our FY25/FY26 earnings estimates to factor in lower loan growth and NIM compression, offset by lower credit costs during FY25, we maintain ADD with a revised SOTP-based TP of INR290 (implied standalone entity at 1.5x Sep-26 ABVPS).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 & Mahindra Fin Services Ltd. (MMFS IN)

HSIE Results Daily: Bajaj Auto, TVS Motor, Federal Bank, Petronet LNG