Oil India, Medplus, JK Lakshmi Cement, Sansera Engineering Q4 Results Review: HDFC Securities

Oil India's Q4 FY25 standalone Ebitda at Rs 19.8 billion (-15% YoY, -7% QoQ) and PAT at Rs 15.9 billion (-21.6% YoY, +30.3% QoQ) came in below estimates due to lower-than-expected volume and higher opex. Medplus 's Ebitda grew 29% YoY despite muted sales (pharmacy +1% YoY, diagnostics +21% YoY) and higher staff costs (+21%), led by 398 bps YoY expansion in gross margin (driven by increased private label share to 23.3%) and flat selling general and administrative..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.Oil India -Higher opex impacts profitability Our Buy recommendation on Oil India with a revised target price of Rs 490 is premised on oil production growth at 10% CAGR and gas production growth at 21% CAGR over FY25-27E. Q4 FY25 standalone Ebitda at Rs 19.8 billion (-15% YoY, -7% QoQ) and PAT at Rs 15.9 billion (-21.6% YoY, +30.3% QoQ) came in below our estimates due to lower-than-expected volume and higher opex. Oil and gas production stood at 1.65mmtoe (-0.2%YoY, -2.8% QoQ)..Medplus Health Services - Chasing private label share, margins over growth Medplus Health Services Ltd.'s Ebitda grew 29% YoY despite muted sales (pharmacy +1% YoY, diagnostics +21% YoY) and higher staff costs (+21%), led by 398 bps YoY expansion in gross margin (driven by increased private label share to 23.3%) and flat selling general and administrative. Operating profit margin came in at 5.3% (+178 bps YoY), with pharmacy margin at 5.2% (+115 bps YoY). Medplus has outlined following plans:add ~600 stores in FY26; achieve high-single to low-double-digit growth in matured stores; increase private label share by 1% over the next few quarters (Q1 FY26 to remain flattish), aiding gross margin expansion;improve gross margin to 25.5-25.8% in FY26 (vs 24.4% in FY25)–driven by 24.5-24.7% gross margin from pharmacy and ~1% from diagnostic business; improve Ebitda margin with limited impact from new stores (as over 78% of stores are matured). While we assume sales growth to take a hit due to Rx-to-private label cannibalization (leading to a 3- 4% revenue cut for FY26/27E), margin improvement is expected to sustain, led by a better mix and steady growth in matured stores (2+ years; ~10-11% margin), higher share of private label (Medplus-brand), and supply chain efficiencies. Baking in management’s guidance, we have marginally revised FY26/27E Ebitda estimates and raised the valuation multiple to 19x on the back of visible margin gains, strong operating cash flow/free cash flow generation (Rs 5.4 billion/Rs 2.4 billion in FY25), and improving return ratios. We revise our target price to Rs 1,110 (19x FY27E EV/ E, implying 31x pre-INDAS EV/E). Buy stays..Click on the attachment to read the full report:.Granules India Q4 Review: Motilal Oswal Maintains 'Buy' Post Inline Results, But Cuts Target Price.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.

Oil India, Medplus, JK Lakshmi Cement, Sansera Engineering Q4 Results Review: HDFC Securities

HDFC Securities recommends 'Buy' call for Oil India, Medplus, JK Lakshmi Cement and 'Add' call for Sansera Engineering, here's why

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