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)

<div><ul><li>Q1 margin pressure likely to be lower than earlier envisaged - We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.</li><li><p>Outliers expected within our coverage universe in Q1 - <span style="font-size: var(--content-font-size);">We expect M&amp;M to be the best performer in Q1, with an estimated 41% growth in earnings QoQ.</span></p></li><li><p><span style="font-size: var(--content-font-size);">Q1 estimates for ancillaries - </span><span style="font-size: var(--content-font-size);">At the moment, we only have two ancillary companies under coverage.</span></p></li></ul></div><p><em>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.</em></p>

Q1 margin pressure likely to be lower than earlier envisaged - We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.Outliers expected within our coverage universe in Q1 - We expect M&amp;M to be the best performer in Q1, with an estimated 41% growth in earnings QoQ.Q1 estimates for ancillaries - At the moment, we only have two ancillary companies under coverage.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.

Autos - Margin Pressure to Be Lower than Earlier Envisaged

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

<div><ul><li>Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitability</li><li><p>Mahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.</p></li><li><p><span style="font-size: var(--content-font-size);">Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.</span></p></li></ul></div><p><em>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.</em></p>

Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitabilityMahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.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.

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

External broker reports(aggregated public sources), Axis Direct

Axis Direct

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

<div><div><div><div><ul><li>Demand Outlook: The management remains positive on MHCV demand going ahead led by (1) Recovery in core economic sectors such as Construction &amp; Mining, Steel, Cement, and Infrastructure spending</li></ul><div><div><div><div><ul><li>Margins: The management highlighted that it has taken a 2% price hike in Jan’22 and an additional 2-2.5% hike in Apr’22 to offset the impact of elevated steel prices.</li></ul><div><div><div><div><ul><li>Hinduja Leyland Finance (HLFL): Around 35% of HLFL’s portfolio comprises CVs while the balance is divided between 2W, 3W, and OHV, among others.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>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.</em></p>

Demand Outlook: The management remains positive on MHCV demand going ahead led by (1) Recovery in core economic sectors such as Construction &amp; Mining, Steel, Cement, and Infrastructure spendingMargins: The management highlighted that it has taken a 2% price hike in Jan’22 and an additional 2-2.5% hike in Apr’22 to offset the impact of elevated steel prices.Hinduja Leyland Finance (HLFL): Around 35% of HLFL’s portfolio comprises CVs while the balance is divided between 2W, 3W, and OHV, among others.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.

<div><div><div><div><ul><li>Revenue ahead of estimate; margins beat on better operating leverage: AL reported revenue of Rs87.4bn, ahead of our estimate by 6%, led by strong volume growth and higher realisations.</li></ul><div><div><div><div><ul><li>Gross margin was flattish at 21.8% QoQ, in line with our estimate.</li></ul><div><div><div><div><ul><li>EBITDA margin at ~9% (+170bps NBIE est.) was up 480bps QoQ on account of higher operating leverage, which was partially offset by RM inflation</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>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.</em></p>

Revenue ahead of estimate; margins beat on better operating leverage: AL reported revenue of Rs87.4bn, ahead of our estimate by 6%, led by strong volume growth and higher realisations.Gross margin was flattish at 21.8% QoQ, in line with our estimate.EBITDA margin at ~9% (+170bps NBIE est.) was up 480bps QoQ on account of higher operating leverage, which was partially offset by RM inflationContent 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.

Ashok Leyland - Market Share Gains Amid Healthy Growth to Drive Re-Rating

<div><div><div><ul><li>Ashok Leyland: In Q4, Ashok Leyland’s (AL) margin improved 130bps YoY to 8.9%, led by (1) 11% YoY volume growth and (2) 13% YoY realisation growth.</li><li>Alkyl Amines: We maintain SELL on Alkyl Amines with a price target of INR 2,375 (WACC 11%, terminal growth 5%).</li></ul></div></div></div><div><div><div><div><div><div><ul><li>Prince Pipes: We maintain BUY on Prince Pipes with a revised target price of INR 875/sh (18.5x its Mar-24E EBITDA).</li></ul></div></div></div></div></div></div><p><em>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.</em></p>

Ashok Leyland: In Q4, Ashok Leyland’s (AL) margin improved 130bps YoY to 8.9%, led by (1) 11% YoY volume growth and (2) 13% YoY realisation growth.Alkyl Amines: We maintain SELL on Alkyl Amines with a price target of INR 2,375 (WACC 11%, terminal growth 5%).Prince Pipes: We maintain BUY on Prince Pipes with a revised target price of INR 875/sh (18.5x its Mar-24E EBITDA).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.

HSIE Results Daily: Ashok Leyland, Alkyl Amines, Prince Pipes

India

Ashok Leyland Limited manufactures medium and heavy duty commercial vehicles, including buses, tractors, dumpsters, haulage trucks, fire engines, and defense sector vehicles. The Company also manufactures industrial & marine engines, ferrous castings and spare parts for automobiles. Ashok Leyland sells its products in India and abroad.

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Ashok Leyland (AL IN)

Autos - Margin Pressure to Be Lower than Earlier Envisaged

We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.

HDFC Securities

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

We expect 1QFY23 earnings of Auto & Auto Ancillary companies in our coverage universe to grow significantly over a lower base of 1QFY22.

Nirmal Bang

Result Update - Ashok Leyland

Ashok Leyland Ltd (AL) reported a robust Q4FY22 performance, beating our as well as street estimates, primarily on account of healthy recovery in...

Axis Direct

HSIE Results Daily: Ashok Leyland, Alkyl Amines, Prince Pipes

Ashok Leyland: In Q4, Ashok Leyland’s (AL) margin improved 130bps YoY to 8.9%, led by (1) 11% YoY volume growth and (2) 13% YoY realisation growth.

HDFC Securities

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Autos - Margin Pressure to Be Lower than Earlier Envisaged

We refrain from comparing YoY numbers, given the low base of last year and, hence, compare numbers on a QoQ basis for all companies.

HDFC Securities

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

We expect 1QFY23 earnings of Auto & Auto Ancillary companies in our coverage universe to grow significantly over a lower base of 1QFY22.

Nirmal Bang

Result Update - Ashok Leyland

Ashok Leyland Ltd (AL) reported a robust Q4FY22 performance, beating our as well as street estimates, primarily on account of healthy recovery in...

Axis Direct

Ashok Leyland - Market Share Gains Amid Healthy Growth to Drive Re-Rating

Ashok Leyland (AL) reported revenue of Rs87.4bn, ahead of our estimate by 6%, as price hikes and product mix improvement led to better realisations.

Nirmal Bang

HSIE Results Daily: Ashok Leyland, Alkyl Amines, Prince Pipes

Ashok Leyland: In Q4, Ashok Leyland’s (AL) margin improved 130bps YoY to 8.9%, led by (1) 11% YoY volume growth and (2) 13% YoY realisation growth.

HDFC Securities