SBI, Trent, BSE, NCC, Star Cement, Gujarat Gas, Sonata, Somany, Lemon Tree & More Q3 Review: HDFC Securities

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HDFC Securities Institutional Equities

State Bank of India- Healthy core profitability; remains top tier

SBI’s Q3 FY25 earnings missed our estimates owing to lower treasury/mark to market gains and softer margins, offset by strong operational performance and reversal of standard asset provisions. Loan growth (~13.8% YoY) was healthy across all segments, while the growth in Xpress credit portfolio decelerated further.

Deposit growth (+9% YoY, +2.2% QoQ) was marginally soft as the current account and savings account ratio dropped further to 37.6% (-84bps QoQ), due to weaker traction in standalone balances.

Asset quality improved further, as reflected in sequentially lower slippages, reduction in SMA balances, and write-back of provisions. We believe SBI is well-equipped to sustain growth, given a comfortable LDR (77%), while managing margins ahead of a potential rate-cut cycle (SBI increased its MCLR by 35bps in 9M FY25). We reiterate SBI as our top pick and maintain Buy with a SOTP-based target price of Rs 1,050 (core bank at 1.5x Sep-26 adjusted book value per share).

Trent - Growth moderates; margins surprise positively

Trent’s growth while still healthy, continues to moderate. Standalone revenue grew 36.9% YoY to Rs 45.35 billion (our estimate: Rs 46.42 billion), anchored by Zudio. Fashion formats clocked high-single digit same-stores sales growth in Q3.

Star grew 25% YoY (SSSG: 10%). Despite the rising Zudio skew in sales, the company managed to nearly maintain Ebitdam YoY (34bps contraction YoY; 18.5% versus our estimate 14.3%).

The retailer added 12/58 (net) stores in Westside and Zudio respectively. We largely maintain our FY26/27 estimates and retain Sell with an SOTPbased target price of Rs 4,200 (incl. 60 times FY27 P/E for the standalone business).

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