External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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)

<ul><li>Dr Reddy’s Laboratories: EBITDA grew (14% YoY) as +13% YoY sales growth (-3% QoQ US, +5% YoY in EU, +9% YoY EMs, and +34% YoY in RoW, India declined 12% YoY, adjusted growth was at 11%), steady gross margin (+65 bps YoY) and muted staff cost were offset by higher R&amp;D/SG&amp;A (+28/+22% YoY)</li><li>DRRD expects to sustain growth in the US over the next few years with steady traction in gRevlimid and new launches (20+ launches p.a for the next few years)</li><li>The company expects India to see steady growth in FY25, led by new launches, scale-up in key therapies, and in-licensing opportunities</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.

Dr Reddy’s Laboratories: EBITDA grew (14% YoY) as +13% YoY sales growth (-3% QoQ US, +5% YoY in EU, +9% YoY EMs, and +34% YoY in RoW, India declined 12% YoY, adjusted growth was at 11%), steady gross margin (+65 bps YoY) and muted staff cost were offset by higher R&amp;D/SG&amp;A (+28/+22% YoY)DRRD expects to sustain growth in the US over the next few years with steady traction in gRevlimid and new launches (20+ launches p.a for the next few years)The company expects India to see steady growth in FY25, led by new launches, scale-up in key therapies, and in-licensing opportunitiesContent 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: Dr Reddy’s Laboratories, Lupin, IRB Infra, Max Financial

Equity Bottom-Up

Godrej Consumer Products / Equity Bottom-Up

Godrej Consumer Products Limited manufactures personal care, hair care, household care and fabric care products. The Company's products include toilet soaps, cosmetics, shaving creams, talcum powder, household cleaners and fabric detergents.

<ul><li>We upgrade GCPL to BUY from ADD with a TP of Rs 1450 (50x FY26 EPS, 20% premium to its 5-year average PE) as it is poised to deliver revenue, EBITDA and PAT CAGRs of 10/18/18% over FY23-26, the highest earnings growth amongst our consumer staples coverage universe</li><li>Our confidence in achieving strong earnings growth in the high teens is led by two factors: (1) Expanding Market Presence in India and Indonesia: These two markets, which constitute 70% of our consolidated sales, are poised for high single-digit volume growth</li><li>This growth is led by disruptive innovations in existing categories such as Household Insecticides, as well as the expansion into newer categories like air care and hair care</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 upgrade GCPL to BUY from ADD with a TP of Rs 1450 (50x FY26 EPS, 20% premium to its 5-year average PE) as it is poised to deliver revenue, EBITDA and PAT CAGRs of 10/18/18% over FY23-26, the highest earnings growth amongst our consumer staples coverage universeOur confidence in achieving strong earnings growth in the high teens is led by two factors: (1) Expanding Market Presence in India and Indonesia: These two markets, which constitute 70% of our consolidated sales, are poised for high single-digit volume growthThis growth is led by disruptive innovations in existing categories such as Household Insecticides, as well as the expansion into newer categories like air care and hair careContent 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.

Godrej Consumer (4QFY24): All Ducks in a Row for Strong Earnings Growth

CreditAccess Grameen Ltd / Equity Bottom-Up

CreditAccess Grameen Limited provides consumer finance services. The Company offers income generation, home improvement, emergency, and family welfare loans, as well as retail finance, insurance, and healthcare programs. CreditAccess Grameen serves clients in India.

<ul><li>CreditAccess Grameen’s (CREDAG) Q4FY24 earnings were ahead of estimates, driven by steady NIMs (13.1%) and healthy loan growth (+27% YoY), partly offset by higher credit costs (240bps)</li><li>Profitability (RoA/RoE of 5.7%/25%) remained strong on the back of healthy risk-adjusted NIMs and continued efficiency gains</li><li>Borrower addition continued to gain traction (+15.3% YoY) and is likely to drive loan growth during FY25-FY26E</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.

CreditAccess Grameen’s (CREDAG) Q4FY24 earnings were ahead of estimates, driven by steady NIMs (13.1%) and healthy loan growth (+27% YoY), partly offset by higher credit costs (240bps)Profitability (RoA/RoE of 5.7%/25%) remained strong on the back of healthy risk-adjusted NIMs and continued efficiency gainsBorrower addition continued to gain traction (+15.3% YoY) and is likely to drive loan growth during FY25-FY26EContent 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.

CreditAccess Grameen - Value Emerging; Upgrade to BUY

<ul><li>Mahindra &amp; Mahindra Financial Services: MMFS reported yet another quarter of earnings de-growth (-10% YoY) due to higher-than-expected provisions (140bps), driven by elevated write-offs (260bps) and a one-off incidence of fraud (54bps)</li><li>Loan growth remained healthy (+24% YoY), driven by the PVs and used vehicles segment</li><li>MMFS continues to under-deliver on its Mission 2025, as the management revisited its guidance on most parameters, especially NIMs, opex efficiency and RoAs</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.

Mahindra &amp; Mahindra Financial Services: MMFS reported yet another quarter of earnings de-growth (-10% YoY) due to higher-than-expected provisions (140bps), driven by elevated write-offs (260bps) and a one-off incidence of fraud (54bps)Loan growth remained healthy (+24% YoY), driven by the PVs and used vehicles segmentMMFS continues to under-deliver on its Mission 2025, as the management revisited its guidance on most parameters, especially NIMs, opex efficiency and RoAsContent 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: Mahindra & Mahindra Financial Services, CDSL

Marico Limited manufactures consumer products and services in the beauty and wellness space. The Company is known for its presence in the following categories: Coconut Oil, Hair Oils, Anti-lice Treatment, Premium Refined Edible Oils and Fabric Care. Marico Limited is present in the Skin Care Services segment through Kaya Skin Clinics.

<ul><li>We upgrade Marico to BUY from ADD with TP of Rs 650 (45x FY26 EPS, 10% premium to its 5 year Average PE) and move it to high conviction list within staples pack as worst is behind us wr.t muted volume growth, pricing correction, loss related to new business and transient currency headwinds</li><li>We expect Marico to see Revenue/ Ebitda / PAT Cagr of 6/13/13% respectively over FY23-26 as 1) Domestic business fires on all cylinders –(a) Parachute (35% of domestic sales) expected to see mid-single volume growth on back of market share gains and conversion from unbranded to branded, as we have always seen in inflationary copra environment</li><li>Moreover, we expect double digit revenue growth in FY25 on back of mid to single digit price hikes (b) Saffola edible oil (20% of domestic sales) expected to see volume led mid single digit value growth in FY25, courtesy pricing correction anniversarian (down 20% in FY24) (c) VAHO – easing competitive intensity in BOP segment along with uptick in mid to premium end segment shall drive much better outcomes</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 upgrade Marico to BUY from ADD with TP of Rs 650 (45x FY26 EPS, 10% premium to its 5 year Average PE) and move it to high conviction list within staples pack as worst is behind us wr.t muted volume growth, pricing correction, loss related to new business and transient currency headwindsWe expect Marico to see Revenue/ Ebitda / PAT Cagr of 6/13/13% respectively over FY23-26 as 1) Domestic business fires on all cylinders –(a) Parachute (35% of domestic sales) expected to see mid-single volume growth on back of market share gains and conversion from unbranded to branded, as we have always seen in inflationary copra environmentMoreover, we expect double digit revenue growth in FY25 on back of mid to single digit price hikes (b) Saffola edible oil (20% of domestic sales) expected to see volume led mid single digit value growth in FY25, courtesy pricing correction anniversarian (down 20% in FY24) (c) VAHO – easing competitive intensity in BOP segment along with uptick in mid to premium end segment shall drive much better outcomesContent 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.

Marico (4QFY24): Well Oiled for Growth. Upgrade to BUY

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.

HDFC Securities
External broker reports(aggregated public sources)
• HDFC Securities

HSIE Results Daily: Dr Reddy’s Laboratories, Lupin, IRB Infra, Max Financial

DRRD expects to sustain growth in the US over the next few years with steady traction in gRevlimid and new launches (20+ launches p.a for the next...

HDFC Securities

Godrej Consumer (4QFY24): All Ducks in a Row for Strong Earnings Growth

We upgrade GCPL to BUY from ADD with a TP of Rs 1450 (50x FY26 EPS, 20% premium to its 5-year average PE) as it is poised to deliver revenue

HDFC Securities

CreditAccess Grameen - Value Emerging; Upgrade to BUY

CreditAccess Grameen’s (CREDAG) Q4FY24 earnings were ahead of estimates, driven by steady NIMs (13.1%) and healthy loan growth (+27% YoY), partly...

HDFC Securities

HSIE Results Daily: Mahindra & Mahindra Financial Services, CDSL

Mahindra & Mahindra Financial Services: MMFS reported yet another quarter of earnings de-growth (-10% YoY) due to higher-than-expected provisions...

HDFC Securities

Marico (4QFY24): Well Oiled for Growth. Upgrade to BUY

We expect Marico to see Revenue/ Ebitda / PAT Cagr of 6/13/13% respectively over FY23-26 as 1) Domestic business fires on all cylinders –(a)...

HDFC Securities