Ambuja Cement, ACC, Bajaj Finance, Maruti Suzuki, Tata Motors, Star Health & More Q3 Review: HDFC Securities

Bajaj Finance Ltd.’s Q3 FY25 earnings print is in line with brokerages' estimates on the back of steady loan growth (+28% YoY) and improving operating efficiency, offset by elevated credit costs (2.2% annualised)..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.Ambuja Cement - Volume soars but margin collapses We maintain Add with a lower target price of Rs 600/share (16.5x its consolidated Mar-27E Ebitda). In Q3 FY24, consolidated volume soared 17% YoY on rampup of Sanghi and Penna assets (core volumes rose ~5% YoY). However, unit Ebitda collapsed Rs 280/million tonne QoQ to Rs 500/MT, given aggressive pricing, plant shutdown expenses and elevated costs for Sanghi and Penna. Management remained confident of reducing opex to ~Rs 3,850/mt (which appears aggressive from current elevated levels of ~Rs 4,450/mt) over the next three years. Among major cost initiatives, Ambuja is aiming for 60/27% green power/green fuel consumption by FY28-end vs ~20/9% in FY25 and reducing lead distance by 100km, which will majorly reduce costs..Bajaj Finance - Potent franchise navigating through a perfect storm Bajaj Finance Ltd.’s Q3 FY25 earnings print is in line with our estimates on the back of steady loan growth (+28% YoY) and improving operating efficiency, offset by elevated credit costs (2.2% annualised). Despite a tough macroeconomic environment, the management emphasised there are signs of improvement in select pockets and expects credit costs to moderate in Q4 FY25. Bajaj Finance’s cross-functional investments since the pandemic are gradually reflecting in higher throughput and efficiency gains (C/I at 33%; opex-to-AUM at 4%), which are likely to sustain over FY26E-FY27E. Bajaj Finance is poised for ~23% AUM CAGR in the medium term, with the addition of new products, while also simultaneously delivering strong profitability. We trim our FY25/FY26 estimates marginally to factor in higher credit costs, offset by higher fee income; maintain Buy with a revised RI-based target price of Rs 8,535 (implied 4.3x Sep-26 adjusted book value per share; 22x Sep-26 EPS)..Click on the attachment to read the full report:.Bajaj Finance Q3 Results: Rise In Provisions Caps Net-Profit Growth At 17%.DISCLAIMERThis 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.

Ambuja Cement, ACC, Bajaj Finance, Maruti Suzuki, Tata Motors, Star Health & More Q3 Review: HDFC Securities

The brokerage give 'Buy' rating to Bajaj Finance, Maruti Suzuki, Star Health, Mahanagar Gas, Syrma and Orient Electric and 'Add' to Ambuja, ACC, TeamLease and Home First, Here's why

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Ambuja Cement, ACC, Bajaj Finance, Maruti Suzuki, Tata Motors, Star Health & More Q3 Review: HDFC Securities

The brokerage give 'Buy' rating to Bajaj Finance, Maruti Suzuki, Star Health, Mahanagar Gas, Syrma and Orient Electric and 'Add' to Ambuja, ACC, TeamLease and Home First, Here's why

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