Titan (NSE:TITN): Consolidated jewellery sales (ex-bullion) grew 27.3% YoY to INR159.9bn (in-line) powered by gold prices growth (up 25% YoY). Domestic jewellery (ex-bullion) grew 25.4% YoY. Secondary UCP/LTL growth remained healthy at 28/22% respectively underpinned by a strong festive and wedding season (consol. topline growth stood at 25.2% YoY at INR 177.4bn, in-line). Adj. Jewellery margins (excl. INR 2.53bn impact due to the Jul-24 customs-duty cut) surprised positively at 11.2%. Note: Jewellery EBITM (consolidated) contracted 240bps YoY to 9.2% vs HSIE’s 8.5%. Non-jewellery performance was largely in line, albeit margins were lower than expected. We largely maintain our FY26/27 EPS estimates and our REDUCE rating with a DCF-based TP of INR3,160/sh (implying 50x FY27 P/E).
InfoEdge (NSE:INED): Infoedge reported mid-teen (+15% YoY) billing growth for the recruitment segment for the second consecutive quarter, driven by improvement in IT hiring, strong GCCs, and traction in non-IT hiring (BFSI, infrastructure, and healthcare). The new platforms like IIMJobs, Naukri Gulf, and JobHai (blue-collar hiring), which contribute approximately 20% to recruitment billing, grew over 20% YoY. We expect recruitment billings to grow at a ~17% CAGR from FY24-27E, which is higher than the pre-COVID average of ~13%. The margin for the recruitment segment will be in the ~58-60% range, provided billings growth is over 15% YoY. New monetization tools, cost control, and lower marketing spend have led to profitability improvement for Jeevansathi and 99acres platforms. Strong billings growth (+36% YoY) for Jeevansathi is a result of new pricing models, while 99acres billings growth of 16% is lower considering the buoyant real-estate market. The growth in the recruitment segment is expected to continue, led by recovery in IT hiring, non-IT, and AI-based offerings. We increase our EPS estimate by ~1-2% and maintain our BUY rating with a SoTP-based TP of INR 9,000, valuing Naukri at 44x Dec-26E EV/EBITDA (60% of SoTP), 99acres/Jeevansathi+Shiksha at 5/4x P/S, while Zomato (NSE:ZOMT) and Policybazaar (NSE:PBFI) have been assigned the market value. The core recruitment business is trading at 39/32x FY26/27E EV/EBITDA.
Zydus Lifesciences (NSE:ZYDU): EBITDA^ grew 21% YoY, led by 17% YoY sales growth (-1% QoQ decline in US sales, +28% YoY, +5% YoY in India, and +15% YoY in EMs) and higher GM (+254 bps YoY), partly offset by higher staff, R&D, and SG&A (16%, 60%, and 25%). The company is on track to achieve double-digit growth and profitability improvement in FY25. Going forward, it expects single-digit growth in the US business in FY26, led by steady traction in gRevlimid/gMyrbetriq, volume growth, and new launches (20-25 in FY26). The focus remains on scaling up complex generics and specialty business in the US to create long-term growth drivers, with visibility on key launches in FY27/28, as well as a few 505(b)(2) products. It remains optimistic about the scale-up of the specialty business (supply opportunity for its NDA of Sitagliptin in the US) and the progress of key assets (CUTX101, Saroglitozar, Usnoflast), which are expected to monetize over the next 1-3 years. The India business is expected to sustain steady growth. Factoring in Q3 performance, we have tweaked EPS. The ADD rating stays with a revised TP of INR 1,120 (26x Q3FY27E), as the broader thesis of steady growth (in the US and India), stable margin, and the monetization of R&D assets (injectables, biosimilars, NCEs) remain intact.
Max Financial (NSE:MAXI): MAXL printed strong APE growth (+26% YoY), though VNB margins contracted to 21.9% (-340bps YoY) on the back of implementation of revised surrender value norms during the quarter and deterioration in product mix (higher ULIP mix). Given further drag on VNB margins from the revised surrender value norms, we expect margins to remain rangebound from here on. Our forecasts factor in APE/VNB CAGR of 19/15% and operating RoEVs of 16% over FY24-27E. We maintain ADD with a TP of INR1,400 (1.6x Sep-26E EV post-holdco discount), 30% discount to our implied valuation for SBILIFE.
Happiest Minds (NSE:HAPP) Technologies: HAPPSTMN posted a weak quarter, with both revenue and margins coming in lower than our expectations. The 0.8% QoQ CC revenue growth in Q3 was impacted by seasonality and weakness in the ed-tech and travel verticals. Management has lowered its growth outlook for FY25E, expecting growth at the lower end of the guided range of 30-35%, primarily due to delays in the integration of PureSoftware and Aureus, as well as slowdown in organic growth. The growth engine is expected to revive, boosted by healthy growth in the BFSI vertical (supported by the Arttha platform), easing discretionary spending in Retail & CPG, strong demand for GenAI business across verticals, and collaborations with Microsoft (NASDAQ:MSFT) and AWS to enhance the newly formed GenAI business unit (GBS). Despite near-term softness, we remain optimistic about the company's long-term prospects, driven by its scalable business model, strategic partnerships, and emerging opportunities in GenAI. However, we have reduced our earnings estimates by ~5-6% due to softness in the Edutech and TME verticals. The valuation premium is supported by the company’s ability to deliver double-digit organic growth and its size advantage. We maintain ADD on HAPPSTMN with a lowered TP of INR 750, valued at 32x Mar-27E EPS, supported by a 14% EPS CAGR over FY24-27E.
Metropolis Healthcare (NSE:METP): EBITDA (+11% YoY) was 10/9% below our/consensus estimates, as +11% YoY sales growth (led by 4/6% YoY growth in patient/test volume, which led to 6/4% growth in realisation per patient/test) was offset by lower GM (-39 bps) and higher costs (staff/ SG&A up 11/5%). Metropolis expects (1) steady sales growth and a margin of 25%+ in Q4 FY25, from FY26, the company anticipates outperforming industry growth, driven by volume growth and selective price hikes. (2) The Core Diagnostics transaction is expected to complete by Feb/Mar 2025, strengthening the specialty business. Positive EBITDA is projected for FY26, with double-digit EBITDA in FY27, and reaching Metropolis' current levels by FY28. However, some margin dilution is expected in FY26/27. Despite this, Core Diagnostics is expected to remain EPS accretive. (3) The expansion of labs and centres is nearing completion, and Metropolis expects margin improvement (excluding Core Diagnostics) starting FY26. While Metropolis is taking various initiatives like expanding network, niche test portfolios, wellness packages, M&As, micro-market strategy, digital capabilities, gaining share in focused cities, and increasing B2C presence to drive revenue growth, its margin will remain under check in the near term (expansion and M&A-related costs). Factoring in Q3, we have cut FY25/26E EPS by 9/4% and revised TP to INR 2,050 (43x Q3FY27E EPS). ADD stays. We will factor in the Core Diagnostics post-completion of the transaction.
Birla Corporation (NSE:BRLC): We maintain BUY on Birla Corporation (BCORP), with a lower target price of INR 1,490/share (8x FY27E consolidated EBITDA). In Q3FY25, BCORP’s volume rebounded 7% YoY. Higher incentives and op-lev gains QoQ also aided INR 108/MT margin recovery to QoQ INR 569/MT. Management expects to deliver ~7-8% volume growth in Q4FY25 along with ~INR200-250/MT QoQ margin. It noted intense competition in the central region is impacting profitability. On the positive side, it expects the share of both low-cost captive coal and green power to expand over the next 2-3 years, supporting a margin uptick.
Symphony (NSE:SYMP): Symphony’s consolidated revenue declined 2% YoY on account of 6% YoY decline in domestic business, partially offset by the RoW business. EBITDAM declined by 580bps YoY to 12%, impacted by water heater launch expense (1.5% of revenue), high forex loss (3.9% of revenue), high low margin sales mix and weak performance in overseas business. During the quarter, the company booked INR 460mn (19% of revenue) as an exceptional loss pertaining to provision for doubtful debt. Management is confident domestic sales and margin will recover from Q4FY25. Management highlighted CT, Australia sales will pick from FY26, which could lead to margin recovery. In India, over the medium-long term, Symphony remains focused on (1) product innovation, (2) distribution enhancement (semi-urban and rural), and (3) increasing presence in alternate channels. We maintain our REDUCE rating with a lower target price of INR 1,215/sh (30x Mar-27E EPS).
V-MART Retail (NSE:VMAR): V-Mart’s revenue grew 15.5% YoY to INR 10.27bn. Core V-MART operations grew 18.6% YoY to INR 8.6bn. Q3 SSSG stood at 10%. Limeroad losses reduced by 54% YoY to INR 65mn. Footfall/sales density up 12.8/11.6% YoY, respectively. GM/EBITDAM came in at 35.8/10.8% (HSIE: 34.8/9.1%). Management suggested that GM gains from here are unlikely, given the competitive landscape and the focus on giving more value to consumers. Inventory days reduced to 92 (from 108 in Q3FY24). We’ve reduced our FY26/27 EBITDA estimates by 1/4% to account for reduced margins and maintain our REDUCE rating, with a DCF-based TP of INR 3,550/sh, implying 25x FY27E EV/EBITDA.
J Kumar Infraprojects (NSE:JKIP): JKIL reported a strong quarter, with revenue/EBITDA/APAT at 14.8/2.1/0.9bn, beating our estimates by 5.2/8.9/4.5%. As of Dec-24, the order book (OB) stood at INR 205.2bn (~4.2x FY24 revenue). JKIL is on track to achieve its INR 80bn of the order booking for FY25. Moreover, it has L1 positions worth INR 50bn which shall get converted in Q4FY25. Further it guided an order inflow of INR 60-70bn for FY26. It has maintained its FY25 revenue guidance and provided growth guidance for FY26 (+15% YoY of INR 63-65bn) with EBITDA margin guidance of 15-16%. JKIL is keen on bidding for large-scale projects in Maharashtra, including the Virar-Versova sea link. We believe that JKIL is well-placed to incur capex with a mix of debt and internal accruals. We maintain our ADD rating on the stock, with an increase in TP to INR 984/sh. (14x 1-yr forward , Dec-26E rollover).
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