New hotels addition continued at healthy pace: The organized players continued to add new inventory, majorly through management contract and license agreement. New inventory addition has been robust as IHCL and LTH added 7 and 6 hotels respectively, while Royal Orchid added 2 hotels in January, 2025
The company has strong balance sheet with net cash of ₹750 cr+. Asset light unique business model shall enable Protean to attract rich valuations. However, considering muted Q3 result and volatile market scenario, we cut our target multiple and earning estimate. We factor revenue/EBITDA/PAT CAGR of 9.4%/30.5%/22.8% resp. over FY24-27E. We maintain BUY rating on the stock with a revised target price of ₹ 2000 (valued at 45x P/E on FY27E)
Axis Top Picks Basket delivered excellent returns of 12% in the last year against an 8.2% return posted by Nifty 50 over the same period, beating the benchmark by a wide margin of 3.8%. The previous four months were highly volatile for the market, and a notable mixed performance was seen across sectors, market caps, and style indices. The Axis Top Picks basket declined by 6.5% in the last three months, led by volatility, while the Nifty 50 was down by 3.4% during the same period. It gives us immense joy to share that our Top Picks Basket has delivered an impressive return of 301% since its inception (May’20), which stands well above the 153% return delivered by the NIFTY 50 index over the same period
The Government in Budget 2025-26 has tried to balance the three cornerstones of the economy in their order of preference: a) Income Tax relief to the public at large in order to address the consumption moderation, b) Maintain Fisc discipline thereby containing macro variables and c) Allocation to capex, albeit some moderation. We believe revving up consumption in the near term would provide additional triggers for both central and private capex to revive in the medium to long term.
The dividend yield is computed based on the closing price of 31st January 2025. We have considered companies that have consistently paid dividend in the last 3 years – i.e FY24/CY23, FY23/CY22 and FY22/CY21.
Chalet has been our preferred pick amongst the domestic hospitality space. The company’s focus on strengthening leisure segment by foraying into NCR, Goa and Kerala bodes well for RevPAR growth. We anticipate Chalet will outperform the industry growth rate on RevPAR and will have healthy operating margin improvement in near term. BUY with a TP of Rs984
DeepSeek, a Chinese AI startup, has developed the R1 model, which rivals leading AI reasoning models such as OpenAI’s O1. Using a Mixture-of-Experts (MoE) architecture, R1 activates only 37 billion of its 671 billion parameters during processing, significantly reducing computational costs and energy consumption while maintaining top-tier performance
Yatharth has shown a strong performance on a nine-month basis and is likely to see better growth in Q4 and beyond. We expect a revenue/EBITDA/PAT CAGR of 38%/33%/33% over FY24-27E on the back of an improving specialty mix and ARPOB, increased occupancy rates and its bed expansion plans. Post the QIP, the company currently has cash surplus of INR560cr, part of which would be deployed for bed expansions and procuring high-tech equipment
We view DCB is set to deliver returns and could possibly become a 1% ROA/14% ROE bank by FY27 with sustainable earnings drivers (link to our recent initiation report: DCB is set to reclaim its great growth legacy). As investors digest the consistent improvement in DCB’s return over the next few result cycles, it’s likely to be re-rated. We view it’s quite attractive at 0.5x book for a potential 1% ROA/ 14% ROE bank. We view DCB will continue to serve as a ‘beacon of growth’ amidst industry slowdown, translating into a better than index performance. We have made very minor changes to earnings
We believe strong capacity addition trajectory will drive good financial performance for the company in the medium to long run. We maintain our BUY rating on NTPC target pegged at ₹445 per share (based on SOTP Valuations).
Recent Comments