External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank 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>Topline growth remains muted: Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and heightened competitive intensity.</li><li>On a positive note, rural demand continues to show signs of revival and remains resilient. </li><li>Urban weakness was a surprising element: Urban which accounts for 50-60% of FMCG sales came under pressure as highlighted by most of the consumer companies owing to – 1) Slowdown in discretionary spends, 2) Muted wage growth, 3) Higher interest rate coupled with increase in rentals and EMIs, 3) Higher competitive intensity from other D2C brands as Qcommerce penetration increase in the recent time leading to overall weakness in overall urban.</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.

Topline growth remains muted: Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and heightened competitive intensity.On a positive note, rural demand continues to show signs of revival and remains resilient. Urban weakness was a surprising element: Urban which accounts for 50-60% of FMCG sales came under pressure as highlighted by most of the consumer companies owing to – 1) Slowdown in discretionary spends, 2) Muted wage growth, 3) Higher interest rate coupled with increase in rentals and EMIs, 3) Higher competitive intensity from other D2C brands as Qcommerce penetration increase in the recent time leading to overall weakness in overall urban.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.

Top Conviction Ideas – “FMCG” - November 2024

Equity Bottom-Up

PSP Projects Limited operates as a construction company. The Company offers industrial, institutional, government, and residential projects construction, as well as allied services including planning, designing, and post-construction activities. PSP Projects serves the private and public sectors in India.

<ul><li>SPA with Adani Infra India Limited: On November 19, 2024, PSP Projects Ltd entered into a Share Purchase Agreement (SPA) with Adani Infra India Limited for the sale of up to 30.07% of the company’s paid-up share capital, amounting to Rs 685 Cr for Rs 575 per share. Under the execution of the SPA, the acquirer will be required to make an open offer in compliance with SEBI (SAST) regulations.</li><li>Post-consummation of the open offer, both companies are expected to hold equal equity stakes in PSP Projects Ltd.</li><li>According to management, this strategic deal is anticipated to create operational synergies by leveraging advanced technologies and expanding the scope of work to include building projects, data centres, realty, and airport-related infrastructure. </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.

SPA with Adani Infra India Limited: On November 19, 2024, PSP Projects Ltd entered into a Share Purchase Agreement (SPA) with Adani Infra India Limited for the sale of up to 30.07% of the company’s paid-up share capital, amounting to Rs 685 Cr for Rs 575 per share. Under the execution of the SPA, the acquirer will be required to make an open offer in compliance with SEBI (SAST) regulations.Post-consummation of the open offer, both companies are expected to hold equal equity stakes in PSP Projects Ltd.According to management, this strategic deal is anticipated to create operational synergies by leveraging advanced technologies and expanding the scope of work to include building projects, data centres, realty, and airport-related infrastructure. 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.

PSP Projects Limited - Company Update Post Stake Sale To Adani Infra

<ul><li>The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2% year-on-year (YoY) and 1.7% quarteron-quarter (QoQ), driven by robust growth in North America (10.8% YoY) and the India business (9.8% YoY).</li><li>In the domestic market, the Indian Pharmaceutical Market (IPM) recorded 8% YoY growth for Q2FY25.</li><li>Chronic therapies grew by 9%, while acute therapies saw a modest 4% growth, primarily due to a weak season for acute segments.</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.

The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2% year-on-year (YoY) and 1.7% quarteron-quarter (QoQ), driven by robust growth in North America (10.8% YoY) and the India business (9.8% YoY).In the domestic market, the Indian Pharmaceutical Market (IPM) recorded 8% YoY growth for Q2FY25.Chronic therapies grew by 9%, while acute therapies saw a modest 4% growth, primarily due to a weak season for acute segments.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.

Top Conviction Ideas – “Pharmaceutical & Hospitals”

Ahluwalia Contracts India Ltd offers construction services and executes turnkey projects for civil construction, electrical, plumbing, and fire-fighting.  The Company also constructs super structures, integrated townships, hospitals, hotels, commercial complexes, manufacturing facilities, and pipelines.

<ul><li>Robust order book: The company has an order book of Rs 16,193 Cr (as of 30th Sep'24) and a YTD order inflow of Rs 7,794 Cr. The breakup of this order book is as follows: Hospital – 16% (Rs 2,537 Cr), Commercial – 18% (Rs 2,982 Cr), Institutional – 9% (Rs 1,467 Cr), Residential – 25% (Rs 4,049 Cr), Infrastructure – 31% (Rs 4,978 Cr), and Hotel – 1% (Rs 180 Cr).</li><li>The robust order book provides revenue visibility for the next 3-4 years.</li><li>The company is therefore expected to achieve revenue growth of 19% CAGR over FY24-FY26E and is likely to post improved margins with better execution.</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.

Robust order book: The company has an order book of Rs 16,193 Cr (as of 30th Sep'24) and a YTD order inflow of Rs 7,794 Cr. The breakup of this order book is as follows: Hospital – 16% (Rs 2,537 Cr), Commercial – 18% (Rs 2,982 Cr), Institutional – 9% (Rs 1,467 Cr), Residential – 25% (Rs 4,049 Cr), Infrastructure – 31% (Rs 4,978 Cr), and Hotel – 1% (Rs 180 Cr).The robust order book provides revenue visibility for the next 3-4 years.The company is therefore expected to achieve revenue growth of 19% CAGR over FY24-FY26E and is likely to post improved margins with better execution.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.

Ahluwalia Contracts India Ltd - H2FY25 to Witness Better Execution; Retain BUY

<ul><li>Banks (incl. SFBs) under our coverage reported a largely in-line performance delivering a credit growth at ~14% YoY, with a continuous and conscious slowdown visible in the unsecured segments, particularly credit cards, personal loans, and microfinance as asset quality concerns continued to linger.</li><li>Credit growth was primarily driven by Retail and SME segments, while corporate growth especially in the large corporates remained subdued owing to competitive pricing.</li><li>Management commentary has been around credit growth gradually converging with deposit growth, in an attempt to maintain balanced LDR, especially in private (Pvt.) banks.</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.

Banks (incl. SFBs) under our coverage reported a largely in-line performance delivering a credit growth at ~14% YoY, with a continuous and conscious slowdown visible in the unsecured segments, particularly credit cards, personal loans, and microfinance as asset quality concerns continued to linger.Credit growth was primarily driven by Retail and SME segments, while corporate growth especially in the large corporates remained subdued owing to competitive pricing.Management commentary has been around credit growth gradually converging with deposit growth, in an attempt to maintain balanced LDR, especially in private (Pvt.) banks.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.

Top Conviction Ideas – “Banks, Financial Services and Insurance (BFSI)”

Axis Direct
External broker reports(aggregated public sources)

Top Conviction Ideas – “FMCG” - November 2024

Staple companies have reported muted topline growth due to weak urban consumer demand, heavy rainfall across major parts of the country, and...

Axis Direct

PSP Projects Limited - Company Update Post Stake Sale To Adani Infra

According to management, this strategic deal is anticipated to create operational synergies by leveraging advanced technologies and expanding the...

Axis Direct

Top Conviction Ideas – “Pharmaceutical & Hospitals”

The pharmaceutical universe under our coverage reported Q2FY25 growth of 10.2% year-on-year (YoY) and 1.7% quarteron-quarter (QoQ), driven by...

Axis Direct

Ahluwalia Contracts India Ltd - H2FY25 to Witness Better Execution; Retain BUY

The company is therefore expected to achieve revenue growth of 19% CAGR over FY24-FY26E and is likely to post improved margins with better execution.

Axis Direct

Top Conviction Ideas – “Banks, Financial Services and Insurance (BFSI)”

Banks (incl. SFBs) under our coverage reported a largely in-line performance delivering a credit growth at ~14% YoY, with a continuous and...

Axis Direct