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

Go Digit General Insurance / Equity Bottom-Up

Go Digit General Insurance is a digital-first non-life insurance provider in India, offering a range of insurance products including motor, health, travel, property, marine, and liability insurance. The company leverages a technology-driven platform for simplified insurance processes, automated underwriting, and digitally enabled claims settlement. It was founded in 2016 and is headquartered in Bengaluru, India.

<ul><li>Go Digit hosted an Analyst/Investor Day on 17-Feb-25 in Bangalore, for select analysts and investors where the management provided a detailed update on its business strategy and outlook.</li><li>We were not part of this invite.</li><li>Based on the presentation, the KTAs are: 1) Motor remains a focus area for the company, with strong focus on the profitable renewal pool.</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.

Go Digit hosted an Analyst/Investor Day on 17-Feb-25 in Bangalore, for select analysts and investors where the management provided a detailed update on its business strategy and outlook.We were not part of this invite.Based on the presentation, the KTAs are: 1) Motor remains a focus area for the company, with strong focus on the profitable renewal pool.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 Digit - Challenges to ‘growth with Profitability’ Persist; Reiterate SELL

National Aluminium Co. Ltd. is an integrated aluminum manufacturer. The Company mines for bauxite, refines bauxite into aluminum and manufactures and sells aluminum and aluminum products. National Aluminium Company's products include bauxite, aluminum hydrate, calcined aluminum, aluminum ingots and aluminum wire rods, as well as electricity which is generated for captive consumption.

<ul><li>Nalco posted a solid quarterly performance given EBITDA of Rs23.3bn (+21.1% vs Consensus; +26.1% vs Emkay; +50.3% QoQ), with the earnings beat led by higher alumina export volumes, while benefitting from elevated alumina prices.</li><li>We note that progress on the alumina refinery project has slowed, with the company delaying it by three months.</li><li>While we did not build in any volume growth for FY26 to allow for any delays/teething issues, our sense is that the delay could be seen as slightly negative by the market.</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.

Nalco posted a solid quarterly performance given EBITDA of Rs23.3bn (+21.1% vs Consensus; +26.1% vs Emkay; +50.3% QoQ), with the earnings beat led by higher alumina export volumes, while benefitting from elevated alumina prices.We note that progress on the alumina refinery project has slowed, with the company delaying it by three months.While we did not build in any volume growth for FY26 to allow for any delays/teething issues, our sense is that the delay could be seen as slightly negative by the market.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.

National Aluminium Co - Strong Q3 Print; Reiterate BUY

REC Limited operates as a financial firm. The Company provides loan assistance to various state and central power utilities, private sector project developers, and state governments for investments in power generation, transmission, distribution, and other system improvement schemes. REC serves clients in India.

<ul><li>REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account of higher repayment and resolution of NPAs; however, disbursement remained strong.</li><li>Asset quality continues to improve on account of resolution in NPA assets which resulted in a negligible credit cost (approx -0.6%).</li><li>The management expects total recovery and write-back of ~Rs22bn next year (from 4 projects resolved through the NCLT), including recovery of Rs3.5bn from the KSK Mahanadi project in Q3. </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.

REC reported a satisfactory quarter in terms of margins, credit cost, and asset quality, while growth in Q3 was a tad below expectations on account of higher repayment and resolution of NPAs; however, disbursement remained strong.Asset quality continues to improve on account of resolution in NPA assets which resulted in a negligible credit cost (approx -0.6%).The management expects total recovery and write-back of ~Rs22bn next year (from 4 projects resolved through the NCLT), including recovery of Rs3.5bn from the KSK Mahanadi project in Q3. 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.

REC Ltd - Enough Fuel to Power Growth, Profitability; Attractive Valuation

Apollo Tyres Limited is an Indian multinational tyre manufacturing company that produces and sells tyres, tubes, and flaps for a diverse range of vehicles, including passenger cars, commercial vehicles, two-wheelers, and off-highway vehicles. The company markets its products under the Apollo and Vredestein brands. Apollo Tyres is headquartered in Gurugram, Haryana, India, and was founded in 1972.

<ul><li>APTY delivered a steady Q3, with revenue growth accelerating to 5% YoY, surpassing our estimate (by 3%), and driven by strong replacement demand; offset by flattish exports and weak OEM demand.</li><li>Consolidated EBITDAM expanded marginally by ~10bps QoQ to 13.7% with EBITDA improving 8% QoQ to Rs9.5bn, despite a 15% YoY rise in RM costs, supported by operational efficiencies/improved margins in the European business.</li><li>Management anticipates a gradual margin recovery going into Q4 as RM prices stabilize.</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.

APTY delivered a steady Q3, with revenue growth accelerating to 5% YoY, surpassing our estimate (by 3%), and driven by strong replacement demand; offset by flattish exports and weak OEM demand.Consolidated EBITDAM expanded marginally by ~10bps QoQ to 13.7% with EBITDA improving 8% QoQ to Rs9.5bn, despite a 15% YoY rise in RM costs, supported by operational efficiencies/improved margins in the European business.Management anticipates a gradual margin recovery going into Q4 as RM prices stabilize.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.

Apollo Tyres - Steady Q3; Margin Recovery to Be a Gradual Process

Delhivery is an Indian logistics and supply chain company that provides technology-enabled services, including express parcel delivery, part-truckload (PTL) and full-truckload (FTL) freight, integrated supply chain solutions, and warehousing. It offers comprehensive solutions for e-commerce and B2B commerce, leveraging a proprietary technology stack. The company was founded in May 2011 and is headquartered in Gurugram, Haryana, India.

<ul><li>Delhivery’s Q3FY25 revenue met our expectations, but EBITDA fell short due to increased vehicle rental costs driven by higher truck spot rates during the festive season.</li><li>These rates have normalized since Jan-25. The management intends to mitigate this risk going forward by exploring fixed cost contracts.</li><li>Performance in the PTL segment is expected to remain robust in Q4 (Jan volumes at 147k ton), while B2C continues to face broader industry headwinds (demand and quick commerce) and insourcing by Meesho.</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.

Delhivery’s Q3FY25 revenue met our expectations, but EBITDA fell short due to increased vehicle rental costs driven by higher truck spot rates during the festive season.These rates have normalized since Jan-25. The management intends to mitigate this risk going forward by exploring fixed cost contracts.Performance in the PTL segment is expected to remain robust in Q4 (Jan volumes at 147k ton), while B2C continues to face broader industry headwinds (demand and quick commerce) and insourcing by Meesho.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.

Delhivery - Subdued Profitability; Outlook for PTL Remains Robust

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.