MS on Titan
EW, TP Rs 3532
F2Q top-line growth was strong but big -ve surprise on margins
Buyer growth (12% YoY) strong owing to duty cut & per management, F2H demand is expected to be strong
F2025 consol jewellery EBIT margin guidance lowered to 11-11.5%
CLSA on Titan
O-P, TP raised to Rs 4,221 (on Roll fwd)
2Q standalone sales growth of 13% YoY, above est
Jewellery growth of 13% also beat forecast of 12%, with domestic sales growing 25% YoY (ex-bullion sales).
Watches & wearables grew 19% YoY
Eye care & emerging biz grew 7%& 14%
Jefferies on Titan
Hold, TP Cut to Rs 3400
Impact of custom duty cut while benefited jewellery growth, weighed -vely on reported margins, with adjusted also weak due to inferior product mix (lower studded).
Mgmt commentary on demand reasonably +ve
Cut EPS by 3-7%
GS on Titan
Buy, TP cut to Rs 3650
2Q EBIT declined 15.9% YoY.
Adjusted for one-off loss of Rs2.9bn caused by inventory losses in jewellery biz due to 9% drop in customs duty on gold, EBIT grew 6.9% YoY, below est.
Strong growth in jewellery in 2Q, festive season in 3Q also good
Jefferies on DR Reddys
U-P, TP Rs 1130
2Q a small miss to est on weaker product mix & higher R&D spend
US growth subdued QoQ but base biz growth in India recovered to 9%
Acquisition of Nicotineel OTC brands completed
No near-term catalysts
GS on DR Reddys
Neutral, TP Rs 1325
Q25 revenue/adj. EBITDA grew 17%/6% yoy each, broadly inline
Adj. EBITDA margins declined to 28.7% (above GSe) on a/c of moderation in GMs & higher SG&A spends Tweak FY25-27E EPS est by 3-8% to factor in Q2 nos
UBS on DR Reddys
Sell, TP Rs 1140
Upside case depends on size of GLP-1 opportunity
DRL eyeing day 1 launch of GLP-1 in all key Ems
Consensus still over-estimating core EBITDA by >US$150-200mn
Nomura on ABB (Post Call)
Neutral, TP cut to Rs 7570
Cautious in short term, but bullish over long term
EPS cut for CY24F/CY25F/CY26F by 4%/7%/7% on slower than estimated execution rate
Witnessing an uptick in large cycle contracts
HSBC on ABB
Hold, TP cut to Rs 8000 from Rs 9000
Q3 revenue & PAT grew by 5% and 22% respectively; PAT missed Bloomberg consensus expectation by 5%
Increased order backlog shift towards large orders, & slow growth in base orders, drive cut in revenue & earnings
MS on Manappuram Fin
EW, TP Rs 170
Trim F2026-27e EPS by 1-2% mainly on lower loan growth
F2025e EPS increase 7% owing to F2Q25 beat
Valuation remains cheap; however, given RBI ban on MFI subsidiary, think investor interest could take a while to return
CLSA on Manappuram Fin
O-P, TP Rs 200
2QFY25 NII, PPOP and PAT beat estimates by 5%-8%, driven by better spreads & opex
Gold loan business grew 3% QoQ, better than usual but lower than growth delivered in past 2 qtrs.
MFI biz remains sombre, like peers
MS on GAIL
OW. TP Rs 258
Reported 19% integrated ROE for its gas pipes, with volume growth continuing to see benefits from new pipeline network expansion.
At 1.2x F26e P/B with rising domestic gas penetration, see multiple triggers for stock to re-rate
Jefferies on GAIL
Upgrade to Buy, TP Rs 240
Ebitda rose 7% y/y & marginally below JEFe
New pipelines driving market share gains, see this continuing
Trading profitability should continue on muted Henry Hub price, given elevated US gas inventories
Risk reward favourable
UBS on GAIL
Buy, TP Rs 240
H1 FY25 performance suggests co is on track to meet/ beat management guidance for FY25
Gas transmission vol averaged 131mmscmd in H1
& gas trading earnings were at Rs33.6bn for H1
Earnings growth prospects not fully priced in
Nomura on Berger Paints
Reduce, TP Rs 500
Weak quarter; embarking on new initiatives to improve share
2Q: Below estimates; volume / sales growth of 3.6% / 0.3% y-y vs forecast of 10% / 3%
OPM (15.6%) below forecast (17%); OPM guidance maintained at 15-17%
MS on Berger Paints
UW, TP Rs 466
2Q missed estimates on top line and margins.
EBITDA margin was at the lower end of management guidance.
Management expects top-line growth to improve in 2H
No major impact from competition, so far
Macquarie on Berger Paints
U-P, TP Rs 455
Weaker than expected volume growth in 2Q along with higher investments in urban sales teams drove a 7% Ebitda miss
BRGR confident of 7-8% vol growth in 3Q & 10%+ growth in 4Q
Further, it reiterated FY25 Ebitda margin band of 15-17%
