Bajaj Finance, Ambuja Cement, Trent, Oberoi Realty, IndiaMart Q4 Results Review: HDFC Securities

The brokerage maintains 'Add 'on Ambuja Cement with a target price of Rs 570/share (16.5x its consolidated Mar-27E Ebitda). In Q4 FY25, consolidated volume rose 13% YoY on healthy organic growth of 7% and ramp-up of Sanghi and Penna assets. .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.Bajaj Finance - Best-in-class franchise hits asset quality bump Bajaj Finance Ltd.’s Q4 FY25 earnings missed our estimates on account of elevated credit costs (2.3% annualised), despite steady AUM growth (+26% YoY) and improving operating efficiency. A challenging macro continued to take a toll on asset quality as credit costs trended north of management guidance (2.1% for FY25) even as the management guided for marginal moderation in FY26 credit costs to ~1.9%. Bajaj Finance’s post-pandemic cross-functional investments are gradually reflecting in higher throughput and efficiency gains (C/I at 33%; opex-to-AUM at 3.9%), which are likely to sustain over FY26E-FY27E. Bajaj Finance is poised for ~24% AUM CAGR over FY26-FY27E, with the addition of new products, while also simultaneously delivering strong profitability. We trim our FY26E/FY27E estimates marginally to factor in higher credit costs and lower fees, which is likely to be offset by efficiency gains. We maintain Buy with a revised RI-based target price of Rs 9,510 (implied 4.3x Mar-27 ABVPS; 24x FY27 EPS.Ambuja Cement - Cost normalisation drives margin recovery We maintain Add with a target price of Rs 570/share (16.5x its consolidated Mar-27E Ebitda). In Q4 FY25, consolidated volume rose 13% YoY on healthy organic growth of 7% and ramp-up of Sanghi and Penna assets. Price recovery, lower input costs and normalisation of other expenses drove margin expansion by Rs 461/mt QoQ to Rs 999/MT. Management remained confident of reducing opex to ~Rs 3,650/MT by FY28 (aggressive guidance in our view) along with achieving 140mn MT capacity by the end of FY28..Trent - Margin surprises positively Trent Ltd. continues to sport the best growth profile amongst apparel peers; albeit the pace of growth is moderating. Standalone revenue grew 28.8% YoY to Rs 41.06 billion (our estimate: Rs 40.84 billion), primarily driven by Zudio. Fashion formats clocked mid-single digit same-stores sales growth in Q4 (double-digit SSSG in FY25). Its grocery format Star grew 17% YoY (SSSG: 2%). Despite the rising Zudio skew in sales, the company managed to improve Ebitdam YoY (101bps expansion YoY; 16% versus our estimate’s 15%). It is strategically increasing its store density in key markets. The retailer added 10/130 (net) stores in Westside and Zudio respectively. We largely maintain our FY26/27 estimates and retain Sell with an SOTP-based target price of Rs 4,200 (incl. 61x FY27 P/E for the standalone business)..Click on the attachment to read the full report:.Blue Jet Healthcare Gets 'Buy' As Motilal Oswal Initiates Coverage, Sees 26% Upside.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.

Bajaj Finance, Ambuja Cement, Trent, Oberoi Realty, IndiaMart Q4 Results Review: HDFC Securities

HDFC Securities recommends 'Buy' rating to Bajaj Finance, IndiaMart, Oberoi Realty, 'Add' to Ambuja Cement and 'Sell' to Trent - Here's why

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