External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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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

Angel Broking Limited provides securities brokerage services. The Company offers e-broking, insurance, portfolio management, mutual funds, commodities trading, investment advisory, wealth management, IPO, and depository services. Angel Broking serves customers in India.

<ul><li>In its efforts to clamp down on the rising irrationality in option volumes (F&amp;O), the SEBI has directed exchanges and market infrastructure institutions (MII) to discontinue the practice of charging turnover-linked slab-wise fee structures, and levy uniform transaction charges instead</li><li>While exchanges currently levy regressive slab-wise fees (higher the turnover, lower the fees), brokers usually charge their customers at the highest prescribed slab rate, resulting in excess profit residing with brokers, especially discount brokers, which is accounted as “ancillary transaction income”</li><li>Our analysis of ANGELONE’s disclosures suggests that this revenue stream contributes ~8% to revenues and a material 20% to pre-tax profits, which is likely to be vulnerable to the SEBI’s “True to Label” mandate that calls for a complete pass-through from customers to MIIs</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.

In its efforts to clamp down on the rising irrationality in option volumes (F&amp;O), the SEBI has directed exchanges and market infrastructure institutions (MII) to discontinue the practice of charging turnover-linked slab-wise fee structures, and levy uniform transaction charges insteadWhile exchanges currently levy regressive slab-wise fees (higher the turnover, lower the fees), brokers usually charge their customers at the highest prescribed slab rate, resulting in excess profit residing with brokers, especially discount brokers, which is accounted as “ancillary transaction income”Our analysis of ANGELONE’s disclosures suggests that this revenue stream contributes ~8% to revenues and a material 20% to pre-tax profits, which is likely to be vulnerable to the SEBI’s “True to Label” mandate that calls for a complete pass-through from customers to MIIsContent 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.

Angel One: SEBI Clamps Down on Frothy Revenue Pools. Maintain ADD

Galaxy Surfactants Ltd / Equity Bottom-Up

Galaxy Surfactants Limited manufactures specialty chemicals. The Company produces fatty alcohol sulfates, lauryl alcohol ethoxylates, foam and viscosity boosters, surfactant blends, fatty alcohol ether sulfates, and pearlising agents. Galaxy Surfactants serves the personal, home care, and manufacturing industries worldwide.

<ul><li>Galaxy Surfactants’ (GSL) volume growth momentum has the potential to accelerate, accompanied by margin expansion</li><li>Global home and personal care leaders have increased the volume growth outlook for 2024 after strong volumes in Q1</li><li>Demand for premium specialty care products is expected to rebound as demand in Europe and North America rebounds with the easing of inflation and the end of inventory destocking</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.

Galaxy Surfactants’ (GSL) volume growth momentum has the potential to accelerate, accompanied by margin expansionGlobal home and personal care leaders have increased the volume growth outlook for 2024 after strong volumes in Q1Demand for premium specialty care products is expected to rebound as demand in Europe and North America rebounds with the easing of inflation and the end of inventory destockingContent 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.

Galaxy Surfactant: Growth and Quality. Maintain BUY

J.K. Lakshmi Cement Ltd. manufactures cement, which it sells under the brand name JK Lakshmi.

<ul><li>We maintain our BUY rating on JK Lakshmi (JKLC) with an unchanged target price of INR 1,015/share</li><li>We value the company at 9x Sep-26E consolidated EBITDA. We expect JKLC to fire on all cylinders</li><li>The ramp-up of its north expansion and upcoming east capacities should support ~10% volume CAGR during FY24-27E</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 maintain our BUY rating on JK Lakshmi (JKLC) with an unchanged target price of INR 1,015/shareWe value the company at 9x Sep-26E consolidated EBITDA. We expect JKLC to fire on all cylindersThe ramp-up of its north expansion and upcoming east capacities should support ~10% volume CAGR during FY24-27EContent 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 Lakshmi Cement: Firing on All Cylinders. Maintain BUY

Bharat Petroleum Corporation Limited explores for and refines crude oil. The Company manufactures petroleum, petroleum products, lubricants, liquefied petroleum gas, aromatics like benzene and toluene, and other related products. Bharat has retail outlets throughout the country.

<ul><li>The Bharat Petroleum Corporation (BPCL) stock rallied ~33% and outperformed the Sensex by ~22% over the last 6M</li><li>However, we believe the current market price is still factoring in very optimistic earnings growth on the back of a very strong FY24</li><li>With crude oil prices rising by ~5% from average prices seen in Q4FY24 and rising ~12% to over USD 86/bbl over the last month, we expect this to adversely impact BPCL’s marketing segment profitability, going ahead</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 Bharat Petroleum Corporation (BPCL) stock rallied ~33% and outperformed the Sensex by ~22% over the last 6MHowever, we believe the current market price is still factoring in very optimistic earnings growth on the back of a very strong FY24With crude oil prices rising by ~5% from average prices seen in Q4FY24 and rising ~12% to over USD 86/bbl over the last month, we expect this to adversely impact BPCL’s marketing segment profitability, going aheadContent 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.

BPCL: Demanding Valuation. Maintain REDUCE

Tata Elxsi Limited manufactures computers and workstations besides providing system design, software development and integration services. The Group supplies its products to a number of industries, including the automotive, metals, consumer products, finance, IT & Communications, energy, chemicals, engineering, pharmaceuticals, entertainment and agro industries.

<ul><li>We spoke to the management of Tata Elxsi (TELX) for a business update and have analysed the annual report – key highlights are: (1) strong growth momentum in the OEM segment (both JLR and others) within the Transportation vertical</li><li>(2) JLR (top client) growth expectation is driving growth visibility for FY25E</li><li>(3) high growth in the Transportation OEM segment can be offset by Healthcare &amp; Life-sciences and Media &amp; Communication verticals</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 spoke to the management of Tata Elxsi (TELX) for a business update and have analysed the annual report – key highlights are: (1) strong growth momentum in the OEM segment (both JLR and others) within the Transportation vertical(2) JLR (top client) growth expectation is driving growth visibility for FY25E(3) high growth in the Transportation OEM segment can be offset by Healthcare &amp; Life-sciences and Media &amp; Communication verticalsContent 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.

Tata Elxsi: Improving Growth Visibility, High Valuations. Upgrade to REDUCE

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

Angel One: SEBI Clamps Down on Frothy Revenue Pools. Maintain ADD

We cut our PBT estimates by 11% and 23% for FY25E and FY26E to factor in the potential first-order impact, we also flag the potential second-order...

HDFC Securities

Galaxy Surfactant: Growth and Quality. Maintain BUY

Demand for premium specialty care products is expected to rebound as demand in Europe and North America rebounds with the easing of inflation and...

HDFC Securities

JK Lakshmi Cement: Firing on All Cylinders. Maintain BUY

We maintain our BUY rating on JK Lakshmi (JKLC) with an unchanged target price of INR 1,015/share. We value the company at 9x Sep-26E consolidated...

HDFC Securities

BPCL: Demanding Valuation. Maintain REDUCE

With crude oil prices rising by ~5% from average prices seen in Q4FY24 and rising ~12% to over USD 86/bbl over the last month, we expect this to...

HDFC Securities

Tata Elxsi: Improving Growth Visibility, High Valuations. Upgrade to REDUCE

High certainty of double-digit growth in FY25E driven by client and sub-segment skew and normalisation in the non-transportation business ahead are...

HDFC Securities