The brokerage maintains ‘Add ‘on Ambuja Cement with a goal worth of Rs 570/share (16.5x its consolidated Mar-27E Ebitda). In This autumn FY25, consolidated quantity rose 13% YoY on wholesome natural progress of seven% and ramp-up of Sanghi and Penna property.
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HDFC Securities Institutional Equities
Bajaj Finance – Finest-in-class franchise hits asset high quality bump
Bajaj Finance Ltd.’s This autumn FY25 earnings missed our estimates on account of elevated credit score prices (2.3% annualised), regardless of regular AUM progress (+26% YoY) and enhancing working effectivity. A difficult macro continued to take a toll on asset high quality as credit score prices trended north of administration steerage (2.1% for FY25) even because the administration guided for marginal moderation in FY26 credit score prices to ~1.9%. Bajaj Finance’s post-pandemic cross-functional investments are step by step reflecting in greater throughput and effectivity good points (C/I at 33%; opex-to-AUM at 3.9%), that are prone to maintain over FY26E-FY27E.
Bajaj Finance is poised for ~24% AUM CAGR over FY26-FY27E, with the addition of latest merchandise, whereas additionally concurrently delivering robust profitability. We trim our FY26E/FY27E estimates marginally to think about greater credit score prices and decrease charges, which is prone to be offset by effectivity good points. We preserve Purchase with a revised RI-based goal worth of Rs 9,510 (implied 4.3x Mar-27 ABVPS; 24x FY27 EPS
Ambuja Cement – Price normalisation drives margin restoration
We preserve Add with a goal worth of Rs 570/share (16.5x its consolidated Mar-27E Ebitda). In This autumn FY25, consolidated quantity rose 13% YoY on wholesome natural progress of seven% and ramp-up of Sanghi and Penna property. Worth restoration, decrease enter prices and normalisation of different bills drove margin enlargement by Rs 461/mt QoQ to Rs 999/MT.
Administration remained assured of lowering opex to ~Rs 3,650/MT by FY28 (aggressive steerage in our view) together with reaching 140mn MT capability by the top of FY28.
Trent – Margin surprises positively
Trent Ltd. continues to sport the most effective progress profile amongst attire friends; albeit the tempo of progress is moderating. Standalone income grew 28.8% YoY to Rs 41.06 billion (our estimate: Rs 40.84 billion), primarily pushed by Zudio. Trend codecs clocked mid-single digit same-stores gross sales progress in This autumn (double-digit SSSG in FY25).
Its grocery format Star grew 17% YoY (SSSG: 2%). Regardless of the rising Zudio skew in gross sales, the corporate managed to enhance Ebitdam YoY (101bps enlargement YoY; 16% versus our estimate’s 15%). It’s strategically growing its retailer density in key markets. The retailer added 10/130 (internet) shops in Westside and Zudio respectively. We largely preserve our FY26/27 estimates and retain Promote with an SOTP-based goal worth of Rs 4,200 (incl. 61x FY27 P/E for the standalone enterprise).
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