IFB Industries Q2 Results Review - Margin Expansion Remains A Key Monitorable: Nirmal Bang

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..Nirmal Bang Report.IFB Industries Ltd.'s Ebitda margin was below our estimates by 184bps due to lower-than-expected growth in Home Appliances.As per the management, due to under-estimation of Washer’s demand by IFB, it had a sold-out situation in the Washers category, and therefore growth was tepid. Oct-24 stated with a very good growth, on account of festive demand. Efforts to expand its distribution reach, specifically for Top Load WMs, Front Load washing machines and room ACs, along with better channel extraction are expected to help IFB improve revenue from its Home Appliances division. For RAC, the strategy is to improve profitability through cost reduction + channel extraction. Currently, FY25 target stands at ~5 lac units, with positive Ebitda. While the Engineering Division is expected to see M&A activities, the company won’t do so until the cash run-rate of Rs 5 billion is achieved. We remain structurally positive on IFB’s long term business prospects on account of consistent efforts to reduce costs, improve brand visibility, extend channel reach and extraction and improve the share of premium products – especially products such as front load washing machines (37% of topline in FY24). We maintain Buy with a revised target price of Rs 1,925. This implies a PE of 27 times on Sept’26E earnings per share..Click on the attachment to read the full report:.Apollo Hospitals Q2 Results Review - Hospital Business, Apollo 24/7 Drive Earnings: Motilal Oswal.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.

IFB Industries Q2 Results Review - Margin Expansion Remains A Key Monitorable: Nirmal Bang

The brokerage remains structurally positive on IFB’s long term business prospects on account of consistent efforts to reduce costs, improve brand visibility etc.

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