External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

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

Dr. Reddy's Laboratories / Equity Bottom-Up

Dr. Reddy's Laboratories Limited provides a complete range of pharmaceutical services. The Company manufactures bulk drugs and formulations including verapamil and cephalexin. The Company also manufactures and exports molecules such as norfloxacin, ciprofloxacin, and varieties of semi-synthetic penicillin. The Company markets its products in India and around the world.

<ul><li>Dr. Reddy’s Laboratories’ (DRL) Q2FY25 performance, adjusted for acquisition-related expenses (INR 561mn) and impairment charge of gNuvaring (INR 924mn), was ahead of our expectations.</li><li>US sales posted growth of 15.6% YoY to USD 445mn, likely driven by gRevlimid (pegged at USD 145mn in Q2) as volumes for base portfolio tumbled. Q2FY25 performance was driven by sales from vaccine portfolio of Sanofi in India and healthy 33.4% growth in RoW markets.</li><li>Acquisition of NRT business from Haleon, consolidation of Sanofi’s vaccine portfolio coupled with the launch of the Nutraceutical portfolio with Nestle in India and steady new launches across key markets should drive growth in the near term while biologics and GLP-1 products are expected to boost growth from FY26E. </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.

Dr. Reddy’s Laboratories’ (DRL) Q2FY25 performance, adjusted for acquisition-related expenses (INR 561mn) and impairment charge of gNuvaring (INR 924mn), was ahead of our expectations.US sales posted growth of 15.6% YoY to USD 445mn, likely driven by gRevlimid (pegged at USD 145mn in Q2) as volumes for base portfolio tumbled. Q2FY25 performance was driven by sales from vaccine portfolio of Sanofi in India and healthy 33.4% growth in RoW markets.Acquisition of NRT business from Haleon, consolidation of Sanofi’s vaccine portfolio coupled with the launch of the Nutraceutical portfolio with Nestle in India and steady new launches across key markets should drive growth in the near term while biologics and GLP-1 products are expected to boost growth from FY26E. 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.

Dr Reddy’s Laboratories - Decent Print; Work on Growth Levers Underway

Titan Co. Ltd. manufactures and retails jewelry and watches. The Company also produces perfume for men and women.

<ul><li>Titan's domestic jewellery business revenue growth had a strong revival (~25% YoY; LFL: 15% YoY) driven by improved industry demand conditions (though likely to underperform peers) for gold jewellery due to customs duty cut while highervalue studded segment demand was under pressure due to global price uncertainty, leading to ~300bps (~30%) reduction in studded share.</li><li>This led to a material decline of ~270bps in normalised jewellery EBIT margin with management revising its guidance downwards to 11-11.5% (vs 11.5-12.5% earlier).</li><li>Further, current phase of formalisation gains accruing more to competition (availability of growth capital) will likely continue to keep a check on revenue growth performance.</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.

Titan's domestic jewellery business revenue growth had a strong revival (~25% YoY; LFL: 15% YoY) driven by improved industry demand conditions (though likely to underperform peers) for gold jewellery due to customs duty cut while highervalue studded segment demand was under pressure due to global price uncertainty, leading to ~300bps (~30%) reduction in studded share.This led to a material decline of ~270bps in normalised jewellery EBIT margin with management revising its guidance downwards to 11-11.5% (vs 11.5-12.5% earlier).Further, current phase of formalisation gains accruing more to competition (availability of growth capital) will likely continue to keep a check on revenue growth performance.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.

Titan Company - Relative Underperformance to Continue; Margin Guidance Cut

ABB India Limited undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. The Company undertakes projects in the field of energy production, power transmission, transportation, process automation and pollution control. ABB India's products include pollution control equipment, switch gears and high current rectifiers.

<ul><li>ABB India (ABB) reported muted revenue of INR 29bn, +5% YoY compared to double-digit growth reported in last 14 quarters.</li><li>Note that revenues grew by 19%, 24%, 22% and 20% in CY21, CY22, CY23 and H1CY24 respectively.</li><li>Order inflow for the quarter was INR 34bn, + 11% 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.

ABB India (ABB) reported muted revenue of INR 29bn, +5% YoY compared to double-digit growth reported in last 14 quarters.Note that revenues grew by 19%, 24%, 22% and 20% in CY21, CY22, CY23 and H1CY24 respectively.Order inflow for the quarter was INR 34bn, + 11% 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.

ABB India - A Sub-Par Revenue and Order Inflow

Berger Paints India Limited manufactures and distributes paints, enamels, varnishes, and synthetic resins. The Company's products are used in home, office, factory, interiors, exteriors, metal, wood, plastic, and others.

<ul><li>Paint industry has likely declined by ~2% in Q2FY25. Considering industry slowdown and steep increase in competitive pressures, we believe Berger reported moderate results with volume growth of 3.6% YoY.</li><li>While EBITDA margin contracted 147bps YoY to 15.6% in Q2FY25, it was within the guided band of 15%-17%.</li><li>Berger has also intensified the investments in urban markets with additional investments in distribution and GTM.</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.

Paint industry has likely declined by ~2% in Q2FY25. Considering industry slowdown and steep increase in competitive pressures, we believe Berger reported moderate results with volume growth of 3.6% YoY.While EBITDA margin contracted 147bps YoY to 15.6% in Q2FY25, it was within the guided band of 15%-17%.Berger has also intensified the investments in urban markets with additional investments in distribution and GTM.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.

Prudent Corporate Advisory Services / Equity Bottom-Up

Prudent Corporate Advisory Services Limited provides financial advisory services. The Company specializes in personal and corporate investment planning through mutual funds, equities, derivatives, third party products, general insurance, commodities, and real estate through various business verticals. Prudent Corporate Advisory Services serves customers in India.

Prudent Corporate Advisory Services (PRUDENT IN)

<ul><li>Prudent Corporate Advisory Services (Prudent) has progressed well in terms of AUM growth aided by MTM, traction in SIP and growth in MFDs.</li><li>AUM/SIP book/MFD count clocked CAGRs of 31%/28%/21% between FY19–24 and grew by 11.6%/12.1%/4% on a QoQ basis in Q2FY25.</li><li>Despite consolidation of yields, post removal of the B-30 incentive, upgrade in earnings estimates is driven by higher-than-expected AUM growth and superior execution (Insurance revenue has also grown 45% in H1FY25).</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.

Prudent Corporate Advisory Services (Prudent) has progressed well in terms of AUM growth aided by MTM, traction in SIP and growth in MFDs.AUM/SIP book/MFD count clocked CAGRs of 31%/28%/21% between FY19–24 and grew by 11.6%/12.1%/4% on a QoQ basis in Q2FY25.Despite consolidation of yields, post removal of the B-30 incentive, upgrade in earnings estimates is driven by higher-than-expected AUM growth and superior execution (Insurance revenue has also grown 45% in H1FY25).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.

Prudent Corporate Advisory Services - Systematic and MTM Increase in AUM

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

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.