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.

Equity Bottom-Up

<ul><li>Aarti Industries Q2FY24 numbers surprised us on all fronts with our expectations. Consolidated revenue beat our estimates by 6% (-14%/3% YoY/QoQ).</li><li>EBITDA stood higher on QoQ (-12%/16% YoY/QoQ) on account of volume expansion with stable-to-better realization for some products.</li><li>It also beat our estimates by 33% as we expected lower gross margins.EBITDA margins increased to 16.1%, up 24/180bps YoY/QoQ. </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.

Aarti Industries Q2FY24 numbers surprised us on all fronts with our expectations. Consolidated revenue beat our estimates by 6% (-14%/3% YoY/QoQ).EBITDA stood higher on QoQ (-12%/16% YoY/QoQ) on account of volume expansion with stable-to-better realization for some products.It also beat our estimates by 33% as we expected lower gross margins.EBITDA margins increased to 16.1%, up 24/180bps YoY/QoQ. 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.

Aarti Industries Ltd - Green Shoots of Volume & Value-Led Recovery in Demand

Thematic (Sector/Industry)

<ul><li>Most companies missing our and street estimates: The chemical pack for H1FY24 posted weak results overall, with most companies missing our and street estimates.</li><li>The agrochemical pack continues to expect inventory destocking to continue in the coming quarters.</li><li>This and weaker domestic demand in China, which is leading to higher Chinese exports at reduced prices, continue to affect realisations in some 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.

Most companies missing our and street estimates: The chemical pack for H1FY24 posted weak results overall, with most companies missing our and street estimates.The agrochemical pack continues to expect inventory destocking to continue in the coming quarters.This and weaker domestic demand in China, which is leading to higher Chinese exports at reduced prices, continue to affect realisations in some 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.

<ul>
<li>Z Score: The spread is currently negative between DIVISLAB and AARTIIND, signaling a long signal on the spread, which means we believe it would retrace up towards the mean, which is the Z Score of 0</li>
<li>Lot Size: To ensure rupee neutral strategy, we suggest going long on DIVISLAB with 1 lot(s) and going short on AARTIIND with 1 lot(s)</li>
<li>Returns Expectations: In the last 9 trades over the last 200 days, we have achieved 77.78% hit ratio over an average trade duration of 8.2 days. </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.


Z Score: The spread is currently negative between DIVISLAB and AARTIIND, signaling a long signal on the spread, which means we believe it would retrace up towards the mean, which is the Z Score of 0
Lot Size: To ensure rupee neutral strategy, we suggest going long on DIVISLAB with 1 lot(s) and going short on AARTIIND with 1 lot(s)
Returns Expectations: In the last 9 trades over the last 200 days, we have achieved 77.78% hit ratio over an average trade duration of 8.2 days. 

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.

Parallel Trades - Strategy - We Suggest Going

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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.

<ul><li>Revenue for our coverage universe is likely to improve by 6.3% QoQ while it could fall by 6.6% YoY in 2Q</li><li>Inventory rationalisation by global agrochemicals and weak demand for products from the US and Europe led to a correction in the prices of finished products</li><li>EBITDA could fall by 7% YoY while EBITDA margin could remain flattish YoY.</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.

Revenue for our coverage universe is likely to improve by 6.3% QoQ while it could fall by 6.6% YoY in 2QInventory rationalisation by global agrochemicals and weak demand for products from the US and Europe led to a correction in the prices of finished productsEBITDA could fall by 7% YoY while EBITDA margin could remain flattish YoY.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.

Chemicals (Q2FY24 Results Preview): Lackluster quarter

<ul><li>Bharat Forge: Bharat Forge’s consolidated PAT at INR 2.2 bn is better than our estimate of INR 1.8bn, led by a performance beat at both standalone and overseas subsidiaries</li><li>Performance beat was largely driven by better-than-expected revenue growth at the standalone entity and break-even at the Europe subsidiary</li><li>We continue to highlight that BHFC has multiple growth levers to offset any potential slowdown from US Class8 which include: (1) defence orders that are likely to see this segment’s revenue ramp-up to INR 17bn by FY25E, from INR 3.5bn in FY23, (2) strong growth expected in PV and industrial exports, (3) huge ramp-up potential at JS-Auto Cast, given its capacity is expected to increase by 2x and there is a huge demand for castings, both in India and abroad, (4) strong order backlog in aerospace, which would help boost revenue to INR 5bn over next the four years, from INR 1.7bn</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.

Bharat Forge: Bharat Forge’s consolidated PAT at INR 2.2 bn is better than our estimate of INR 1.8bn, led by a performance beat at both standalone and overseas subsidiariesPerformance beat was largely driven by better-than-expected revenue growth at the standalone entity and break-even at the Europe subsidiaryWe continue to highlight that BHFC has multiple growth levers to offset any potential slowdown from US Class8 which include: (1) defence orders that are likely to see this segment’s revenue ramp-up to INR 17bn by FY25E, from INR 3.5bn in FY23, (2) strong growth expected in PV and industrial exports, (3) huge ramp-up potential at JS-Auto Cast, given its capacity is expected to increase by 2x and there is a huge demand for castings, both in India and abroad, (4) strong order backlog in aerospace, which would help boost revenue to INR 5bn over next the four years, from INR 1.7bnContent 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: Bharat Forge, Phoenix Mills, Oil India, Prestige Estates

India

Aarti Industries Limited develops and manufactures basic bulk chemicals, dyes and pigment intermediates, pharmaceuticals and agrochemicals, rubber chemicals, surfactant intermediates, and specialty chemicals. The company sells its products in India and elsewhere throughout the world.

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Aarti Industries (ARTO IN)

Aarti Industries Ltd - Green Shoots of Volume & Value-Led Recovery in Demand

Aarti Industries Q2FY24 numbers surprised us on all fronts with our expectations. Consolidated revenue beat our estimates by 6% (-14%/3% YoY/QoQ).

Axis Direct

Top Sector Ideas - Chemical Q2FY24

Most companies missing our and street estimates: The chemical pack for H1FY24 posted weak results overall, with most companies missing our and...

Axis Direct

Parallel Trades - Strategy - We Suggest Going

To ensure rupee neutral strategy, we suggest going long on DIVISLAB with 1 lot(s) and going short on AARTIIND with 1 lot(s)

Axis Direct

Chemicals (Q2FY24 Results Preview): Lackluster quarter

Inventory rationalisation by global agrochemicals and weak demand for products from the US and Europe led to a correction in the prices of finished...

HDFC Securities

HSIE Results Daily: Bharat Forge, Phoenix Mills, Oil India, Prestige Estates

Bharat Forge’s consolidated PAT at INR 2.2 bn is better than our estimate of INR 1.8bn, led by a performance beat at both standalone and overseas...

HDFC Securities

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