Macquarie on Bharti Airtel
Upgrade to O-P, TP raised to Rs 1630 from Rs 1280
Reaffirm constructive earnings & deleveraging thesis
See ROIC improving from 10% to 18-20% by FY28E
Lift India mobile target EV-EBITDA multiple to 12.5x (from 11.0x)
Base case
Assume further +15%/10% mobile increase for FY26-27e (Rs205 in FY24 to Rs290-300 FY27e), albeit with only mild subscriber growth (2%)
See Co’s India business generating US $6-7bn of operating FCF in FY26-28E, more than twice avg in FY22-24
Macquarie on Indus Tower
U-P, TP Rs 310
While clarity on tenancies has improved post Vodafone-Idea fund raise, rent erosion & change in competitive dynamics are headwinds
Expect lacklustre revenue/EPS CAGRs of 5% over FY24-27E, below consensus est.
Catalysts
Positives: Dividend re-instatement, share buyback, repayment of pending dues by Vodafone-Idea.
Negatives: Rent renewals at discount, VI market share erosion, improved competitiveness of peer ATC
JPMorgan on DLF
Overweight Call, Target Raised To Rs 1,000
Believe Co Will Surpass A Coveted $1bn Operating Cash Flow At Group Level In FY25
Co Riding A Strong Sales Cycle & Compounding Of Free Cash At Its Rental Business
This Opens Up Significant Strategic Flexibility At Group Level On Acquisitions
See Upside To Pre-Sales, Margin & Cash Flow In FY25
HSBC on Ola Electric
Initiate Buy, Target Rs 140
Despite Conservative View On EV Penetration In India Along With Other Uncertainties
Believe Co Is Worth Investing In Given Sustained Regulatory Support
Believe Co Is Worth Investing In On Co’s Ability To Reduce Costs
Believe Co Is Worth Investing In On Positive Risk-Reward In Its Battery Venture
Slower Penetration Of e2-wheelers & Battery Plant Issues Are Key Downside Risks
Jefferies on GMR Infra
Buy Call, Target Raised To Rs 106
Q1 EBITDA Ahead Of Est On 8% Growth In Pax Traffic
Q1 Saw Growth In Non-Aero And Subsidiary Rev
Co Recently Announced Completion Of Simplification Of Holding Structure
Co Recently Announced Re-Opening Of T1 At DIAL (New Terminal)
New Tariff At DIAL Is Expected By Q4FY25
Co Is Focussed On Growing Non-Aero Biz &
With Expanded Capacity, Non Aero Rev/Pax May See A Healthy Jump From Q3/4QFY25
Nomura on IPCA Labs
Buy Call, Target Raised To Rs 1,502
Earnings Ahead Of Estimates; International Revenues Weak
Low Costs & A Sustained EBITDA Recovery At Unichem Were Key Positives
International Sales Were Impacted By Technical & Supply Chain Issues
But, These Issues Should Be Addressed In Due Course
For FY25 Mgmt Now Expects Standalone Rev Growth A 9% (Previously 10.5-11%)
Projects EBITDA Margin At 18.5-19.5% (Previously 18.0-18.5%)
Forecast A 25% Earnings CAGR Over FY25-27
Raise FY25F/26 EPS By 6%/3% On Likely Declined Costs
HSBC on Rainbow Hospitals
Downgrade To Neutral, Target Cut To Rs 1,290 From 1,500
Revenue Was In-Line In Q1; Costs For New Units Lowered EBITDA Margin
Expect Rangebound EBITDA Margin At 30-31%
Growth Drivers Priced In, In Our View
HSBC on Apollo Hosp
Buy Call, Target Rs 7,215
Q1 Hospitals (HCS) Revenue Growth Led By 11% Inpatient Volume Growth
Other Segments Also Grew Mid-Teens
HCS Outlook Intact For 24/7 To Achieve Cost Breakeven In 6-7 Quarters
HCS Gross Merchandise Value (GMV) Picking Up
Launch Of Insurance Service Via 24/7 Platform Will Be Key
MS on Apollo Hospitals
Overweight Call, Target Rs 7,110
Cons EBITDA After 24×7 Cost Was `670 Cr, In-Line With Est & Consensus Est
Net Profit (After Minority Interests) Came In At Rs 310 Cr
Jefferies on Nazara
Downgrade To Underperform Call, Target Rs 720
Q1 Results Missed Estimates Due To Continued Weakness In Most Segments
Unclear Success Rates On Recent Acquisitions, Adds To Execution Risks
Raise FY25/27 Revenue/EBITDA Ests By 24-36%
Cut Earnings By 6-29% To Factor Acquisitions
Nomura on Max Fin
Downgrade To Neutral, Target Rs 1,130
VNB Growth To Lag Peers, Potential Upside Looks Limited
Mgmt Expects New SV Regulations To Impact VNB Margin By 100-200 bps
Believe Max Life Will Have To Deliver Much Higher VNB Growth To Meet Its Guidance
Jefferies on Max Fin
Buy Call, Target Rs 1,270
Saw Weaker VNB Growth Of 3% YoY Despite 31% Rise In Premium
Weaker Mix Dragged Margins
Co Is Benefiting From Ramp-Up Of E-Com, Agency And Integration With Axis
Encouraged To See Mgt Indicate Limited Impact Of New SV Norms On Margin
Limited Impact Of SV Norms This Will Aid Mid-Teen Growth In VNB Over FY26-27
