Eicher Motors, GAIL, Metropolis, Hero MotoCorp, Jubilant FoodWorks, Westlife Foodworld & More Q4 Review

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

HDFC Securities Institutional Equities

Eicher Motors - Focus on volumes; absolute Ebitda growth continues

Eicher Motors Ltd.’s Q4 FY25 standalone Ebitda margin declined 24bps QoQ to 24.7%, below Bloomberg consensus estimate of 25.5% and our estimate of 25.4%. We are seeing the company’s “volume over margin” strategy play out, with a focus on absolute Ebitda growth. However, the margin decline is sharper than expected.

Considering Q4 margins had certain one-offs, we expect them to bounce back, going forward, though they are expected to remain lower than they have been in recent years due to the focus on driving volumes. In the medium term, we also expect that the company’s efforts of the last few years in international markets will pay off, once global macro turns favourable.

VECV continues to do well with improvement in sales and margins. We value the company at 26x Mar-27 EPS, and along with the value of VECV, we achieve a target price of Rs 5,731, and maintain our Add rating.

Gail (India) - Weak petchem performance drags earnings down

Our Buy recommendation for GAIL India Ltd. with a target price of Rs 230 is based on-

1. an increase in gas transmission volume, led by demand from end-user industries like CGD and petchem;

2. completion of major pipelines; and

3. expectation of upward revision in transmission tariff of Integrated Natural Gas Pipeline (INGPL).

Q4 FY25 reported standalone Ebitda at Rs 32 billion (-9.6% YoY, +13.3% QoQ) and APAT at Rs 20 billion (-5.9% YoY, +5.6% QoQ), which came in ahead of our estimate, due to higher-than-expected gas transmission tariff. Depreciation was at Rs 9 billion (-22.2% YoY, +8.6% QoQ) whereas other income was at Rs 5.6 billion (-11.2% YoY, -24.4% QoQ). Interest cost was Rs 1.8 billion (-7.7% YoY, +7% QoQ).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.