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. 

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Equity Bottom-Up

Devyani International  / Equity Bottom-Up

Devyani International Limited distributes groceries and related products. The Company operates franchisee business and chain of quick service restaurants. Devyani International serves customers in India.

<ul><li>DIL’s Q2 EBITDA was ~13% below our estimate, on margin miss in KFC and higher HO costs.</li><li>India growth was modest at ~6% in Q2, mainly led by store adds, as KFC/PH India SSG fell 6-7% on weak demand and negative sentiment in a few regions (geo-politics).</li><li>While DIL is seeing greenshoots in some large markets, overall trend is subdued; but DIL sees this as a blip and continues with network expansion, menu innovation, and portfolio enhancement.</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.

DIL’s Q2 EBITDA was ~13% below our estimate, on margin miss in KFC and higher HO costs.India growth was modest at ~6% in Q2, mainly led by store adds, as KFC/PH India SSG fell 6-7% on weak demand and negative sentiment in a few regions (geo-politics).While DIL is seeing greenshoots in some large markets, overall trend is subdued; but DIL sees this as a blip and continues with network expansion, menu innovation, and portfolio enhancement.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.

Devyani International - Near-Term Weakness Compels Us to Retain REDUCE

Metropolis Healthcare Limited / Equity Bottom-Up

Metropolis Healthcare Limited provides medical and laboratory services. The Company offers pathology testing, imaging and nuclear medicine, clinical trails, and home health services. Metropolis Healthcare operates chains of diagnostic centers across India.

Metropolis Healthcare Limited (METROHL IN)

<ul><li>MHL’s Q2FY25 print was in line with our estimates, with revenues growing 13% YoY, driven by B2C revenues improving 21% YoY.</li><li>Overall sample volume growth (8%) was dragged by the B2B portfolio as MHL rationalized its long tail customers.</li><li>Tier 3 revenue growth of 23% is encouraging given the investments made by MHL over the last 3-4 years.</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.

MHL’s Q2FY25 print was in line with our estimates, with revenues growing 13% YoY, driven by B2C revenues improving 21% YoY.Overall sample volume growth (8%) was dragged by the B2B portfolio as MHL rationalized its long tail customers.Tier 3 revenue growth of 23% is encouraging given the investments made by MHL over the last 3-4 years.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.

Metropolis Healthcare - Tier 3 Expansion and Wellness Portfolio to Drive Revenue Growth

Hindalco Industries Limited is an integrated aluminum manufacturer. The Company mines bauxite and refines it into alumina. The Company's other operations include the smelting of alumina into aluminum, the manufacture of semi-fabricated rolled and extruded products. The Company's products include aluminum ingots, steel rods and rolled flat steel products.

<ul><li>We had recently initiated coverage on Hindalco indicating that the stock is pricing in all the positives and a part of that optimism was around Novelis in the lead up to its IPO, which was later called off.</li><li>We were not convinced with its steep EBITDA/t improvement trajectory in the medium term and in playing the Bay Minette capex cycle.</li><li>With the company now withdrawing its EBITDA/t guidance over concerns surrounding ‘accelerating’ tightening of scrap spreads with liberalization of scrap import by China, we think it creates a near-term overhang for the stock.</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 had recently initiated coverage on Hindalco indicating that the stock is pricing in all the positives and a part of that optimism was around Novelis in the lead up to its IPO, which was later called off.We were not convinced with its steep EBITDA/t improvement trajectory in the medium term and in playing the Bay Minette capex cycle.With the company now withdrawing its EBITDA/t guidance over concerns surrounding ‘accelerating’ tightening of scrap spreads with liberalization of scrap import by China, we think it creates a near-term overhang for the stock.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.

Hindalco - Novelis Pain Likely to Persist for Some Time; D/G to SELL

JK Tyre and Industries Limited manufactures a wide range of automobile tires, tubes and flaps. The Company also operates a chain of tire outlets across India which sell the Company's tires in addition to providing a range of automotive services, including wheel alignment and tire changing.

<ul><li>JK Tyre (JKI) Q2 results were soft, impacted by ~16% sales decline in Mexico on weak Latin American demand and 10% currency depreciation vs INR.</li><li>While domestic MHCVs have been weak in H1 (JK is among the segment leaders with 53% CV contribution in consolidated sales), outlook is improving amid expected pickup in infra/capex activity and a favorable base.</li><li>Further, softening rubber prices (down over 20% from recent peak), pricing action (~3-3.5% YTD), and better mix should aid margin recovery Q4FY25E onwards.</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.

JK Tyre (JKI) Q2 results were soft, impacted by ~16% sales decline in Mexico on weak Latin American demand and 10% currency depreciation vs INR.While domestic MHCVs have been weak in H1 (JK is among the segment leaders with 53% CV contribution in consolidated sales), outlook is improving amid expected pickup in infra/capex activity and a favorable base.Further, softening rubber prices (down over 20% from recent peak), pricing action (~3-3.5% YTD), and better mix should aid margin recovery Q4FY25E onwards.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.

JK Tyre - Weak Q2; Bottom Quarter, Improvement Expected Ahead

Oil India Ltd. explores, develops, and produces crude oil and natural gas in India and internationally. The Company is also involved in the transportation of crude oil, production of liquefied petroleum gas, pipeline services, as well as various exploration and production related services.

<ul><li>Oil India clocked Q2FY25 SA EBITDA of Rs21.8bn – an 11% miss, mainly due to higher provisions and lower-than-expected output.</li><li>The SA PAT miss, however, was lower at 6% on higher Other Income and lower ETR.</li><li>Crude production rose 5% YoY to 0.88mmt (2% miss), while gas was 3% below estimate at 0.80bcm (down 1% YoY on customer offtake issues).</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.

Oil India clocked Q2FY25 SA EBITDA of Rs21.8bn – an 11% miss, mainly due to higher provisions and lower-than-expected output.The SA PAT miss, however, was lower at 6% on higher Other Income and lower ETR.Crude production rose 5% YoY to 0.88mmt (2% miss), while gas was 3% below estimate at 0.80bcm (down 1% YoY on customer offtake issues).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.

Oil India - Provisions and Offtake Issues Dent Q2

Emkay Global Financial Services Limited
External broker reports(aggregated public sources)

Devyani International - Near-Term Weakness Compels Us to Retain REDUCE

India growth was modest at ~6% in Q2, mainly led by store adds, as KFC/PH India SSG fell 6-7% on weak demand and negative sentiment in a few...

Emkay

Metropolis Healthcare - Tier 3 Expansion and Wellness Portfolio to Drive Revenue Growth

MHL’s Q2FY25 print was in line with our estimates, with revenues growing 13% YoY, driven by B2C revenues improving 21% YoY.

Emkay

Hindalco - Novelis Pain Likely to Persist for Some Time; D/G to SELL

We were not convinced with its steep EBITDA/t improvement trajectory in the medium term and in playing the Bay Minette capex cycle.

Emkay

JK Tyre - Weak Q2; Bottom Quarter, Improvement Expected Ahead

JK Tyre (JKI) Q2 results were soft, impacted by ~16% sales decline in Mexico on weak Latin American demand and 10% currency depreciation vs INR.

Emkay

Oil India - Provisions and Offtake Issues Dent Q2

Oil India clocked Q2FY25 SA EBITDA of Rs21.8bn – an 11% miss, mainly due to higher provisions and lower-than-expected output.

Emkay