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. 

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

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 MMFS reported a satisfactory performance in Q4FY24, against the backdrop of the already disclosed large-scale fraud at Company’s Aizawl branch comprising of ~2.9K loan accounts and ~Rs1.36bn worth of loans.</li><li>However, overall FY24 performance led to Management lowering the targets it had set for FY25, from 2.5% RoA to ~2.2% RoA, and cutting FY25 Business Assets growth guidance to ~1.85x that in FY22 from ~2x.</li><li>With borrowing costs remaining elevated in FY25 and OpEx too holding up, on account of investments in branches, human resources and technology, we estimate MMFS delivering standalone RoA of ~2% in FY25-27E.</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 MMFS reported a satisfactory performance in Q4FY24, against the backdrop of the already disclosed large-scale fraud at Company’s Aizawl branch comprising of ~2.9K loan accounts and ~Rs1.36bn worth of loans.However, overall FY24 performance led to Management lowering the targets it had set for FY25, from 2.5% RoA to ~2.2% RoA, and cutting FY25 Business Assets growth guidance to ~1.85x that in FY22 from ~2x.With borrowing costs remaining elevated in FY25 and OpEx too holding up, on account of investments in branches, human resources and technology, we estimate MMFS delivering standalone RoA of ~2% in FY25-27E.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 - Satisfactory Performance

Gujarat Fluorochemicals / Equity Bottom-Up

Gujarat Fluorochemicals Ltd. manufactures chlorofluorocarbon refrigerant gases and anhydrous hydrofluoric acid. The Company also trades in Certified Emission Reduction, or carbon credits. Gujarat Flourochemicals owns and operates a chain of family entertainment centers and multiplex cinema theaters.

<ul><li>Emkay Global Financial's research report onGujarat Fluorochemicals GFL’s Q4 EBITDA fell 54% YoY to Rs2.4bn (+15% QoQ) on sluggish performance in the bulk and fluorochemicals businesses.</li><li>Fluoropolymers business is seeing sequential recovery in volumes on a lower base.</li><li>Management expects to report FY25E EBITDA at Rs18-19bn, which we believe is farfetched; we factor-in ~Rs14bn in our estimates.</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 onGujarat Fluorochemicals GFL’s Q4 EBITDA fell 54% YoY to Rs2.4bn (+15% QoQ) on sluggish performance in the bulk and fluorochemicals businesses.Fluoropolymers business is seeing sequential recovery in volumes on a lower base.Management expects to report FY25E EBITDA at Rs18-19bn, which we believe is farfetched; we factor-in ~Rs14bn in our estimates.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.

Gujarat Fluorochemicals - Farfetched Guidance and Modest Recovery

Indian Bank is a full service bank owned by the Government of India. The Bank offers a wide range of services including a foreign currency banking unit at Colombo and specialized overseas branches at Chennai, Bangalore, and Mumbai exclusively for handling foreign exchange  transactions arising out of export, import, remittances and non resident Indian business.

<ul><li>Emkay Global Financial's research report onIndian Bank Indian Bank yet again posted a strong all-around performance, delivering inline PAT at Rs22.5bn/1.2% RoA, on the back of healthy margins (up by 4bps QoQ to 3.44%) and steady improvement in asset quality, with GNPA ratio down to 4%/NNPA to industry-low of 0.4%.</li><li>Though the banking sector will contest the recent RBI draft IRACP guidelines calling for higher standard asset provisions on project financing loans, Indian Bank believes it will see low impact, given its limited exposure to project financing.</li><li>Our back-of-the envelope calculation suggests incremental std provision requirement at 15bps of loans in the worst case scenario; the bank carries additional specific provision buffer of 80bps (assuming optimal specific PCR @70% vs 90% now) and can thus be easily absorbed.</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 onIndian Bank Indian Bank yet again posted a strong all-around performance, delivering inline PAT at Rs22.5bn/1.2% RoA, on the back of healthy margins (up by 4bps QoQ to 3.44%) and steady improvement in asset quality, with GNPA ratio down to 4%/NNPA to industry-low of 0.4%.Though the banking sector will contest the recent RBI draft IRACP guidelines calling for higher standard asset provisions on project financing loans, Indian Bank believes it will see low impact, given its limited exposure to project financing.Our back-of-the envelope calculation suggests incremental std provision requirement at 15bps of loans in the worst case scenario; the bank carries additional specific provision buffer of 80bps (assuming optimal specific PCR @70% vs 90% now) and can thus be easily absorbed.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.

Indian Bank - Endearing Performance, yet Again

Motilal Oswal Financial Services / Equity Bottom-Up

Motilal Oswal Financial Services Limited is a global, diversified financial services group. The Company offers services that include securities, commodities, investment banking and venture capital.

Motilal Oswal Financial Services (MOFS IN)

<ul><li>Emkay Global Financial's research report onMotilal Oswal Financial Services leading to a strong finish to the fiscal.</li><li>While performance of the Capital Markets segment was sturdy, the Asset and Wealth Management segment delivered a solid turnaround with the Housing Finance business gradually coming back on track.</li><li>Overall, the Q4 performance endorses our thesis on MOFS (Read: Perfect vehicle to ride India’s wealth creation journey), and we maintain that MOFS is well positioned to capitalize on the favorable macros around its key business segments, along with strength to navigate any short-term volatility that may arise in the capital market-linked cyclical business.</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 onMotilal Oswal Financial Services leading to a strong finish to the fiscal.While performance of the Capital Markets segment was sturdy, the Asset and Wealth Management segment delivered a solid turnaround with the Housing Finance business gradually coming back on track.Overall, the Q4 performance endorses our thesis on MOFS (Read: Perfect vehicle to ride India’s wealth creation journey), and we maintain that MOFS is well positioned to capitalize on the favorable macros around its key business segments, along with strength to navigate any short-term volatility that may arise in the capital market-linked cyclical business.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.

Motilal Oswal Financial Services - Operational Momentum Continues

Go Fashion (India) Private Limited retails women's apparel. The Company offers leggings, jeggings, palazzo, pants, tops, t-shirts, and diaper shorts. Go Fashion serves customers in India.

<ul><li>Emkay Global Financial's research report onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers) continued with 15% topline growth.</li><li>SSG was low at +1%/0% in Q4/FY24 and GO is targeting 2-3% SSG for Q1</li><li>. Given the muted macros, FY24 has been a year of WC optimization, as GO generated Rs1.1bn operating cash vs. cash-breakeven in FY23, which addresses a key concern.</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 onGo Fashion GO’s Q4 print was weak, albeit results were largely in line and outperformance (vs. peers) continued with 15% topline growth.SSG was low at +1%/0% in Q4/FY24 and GO is targeting 2-3% SSG for Q1. Given the muted macros, FY24 has been a year of WC optimization, as GO generated Rs1.1bn operating cash vs. cash-breakeven in FY23, which addresses a key concern.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.

Go Fashion - Weak Trends, but Outperformance Endures; Maintain BUY

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

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.