Nomura on L&T
Buy, TP Rs 4100
Beats consensus; offers a favorable risk-reward ratio
Order inflow growth expectations for FY25 appear feasible after the surprise in the second quarter
Management maintains its core EBITDA margin guidance of 8.25% for FY25, which is conservative and could see an increase
MS on L&T
OW, TP Rs 3857
Going into the second quarter there was skepticism about orders, revenue, core margin and net WC – all were +ve
L&T maintained its guidance and first half core orders of Rs1.17 trillion (50% of F24) are a +ve given weak government spending and oil price volatility
CLSA on L&T
OP, TP Rs 4151
Surprise 2Q – strength of the business model
Showed E&C margin growth for the third consecutive quarter with surprises in inflows, execution and operating on a lofty basis
Think the Infra segment’s margin expansion of 60 basis points should surprise the market
MS on Tata Power
OW, TP Rs 577
Operationally, production, T&D and green were in line with MSe; solar EPC business +very surprised
Third-party solar EPC implementation will increase and management plans will mandate 5GW RE generation by F26.
Jefferies on Tata Power
UP, TP Rs 340
EBITDA 2Q 8% above expectations
Earnings beat higher thanks to a better solar EPC, other revenues and coal contribution
Management is constructive about its investments in sustainable energy, especially the recently commissioned solar cell production plant.
CITI on Cipla
Buy, TP Rs 1830
USFDA classified the Goa facility as VAI, paving the way for generic approval of Abraxane, a key product of this facility
With approval, possibility of generic Abraxane being launched in FY25E itself versus expectation of delay to FY26-27E
Have built product sales of $24/48 million in FY26/27E, which could increase by $25-40 million (approximately 3-5% impact on earnings per share)
More importantly, the development once again improves pipeline visibility (gAbraxene in 2HFY25, gAdvair in 1HFY26E, gSymbicort in FY27E)
GS at Biocon
Buy, TP Rs 350
2Q25 revenue/EBITDA grew 4%/-8% YoY respectively, under GSe, largely due to weakness in the Generics segment, while the Biologics segment saw healthy growth of 19% YoY
Margins surprised -much (-231bps vs GSe) due to lower gross margins and operational deleveraging
DAM Capital on Steel
Chinese spreads fall to their lowest level in many years; factories are likely to show supply discipline
Capacity expansion to help buffer the profitability of Indian players, which are much better placed than previous cycles
India – a key growth driver for global steel demand
CLSA at Dabur
Wait, TP Rs 582
Missing turnover and profitability; indication for volume growth in the middle of the HSD second half of the year
Declining business in India, led by beverages; modern channel salience 24%
Announces acquisition of SESA to fill white space in Ayurvedic hair oil portfolio
Reduce profit forecast for fiscal year 25-27 by 7-8%
