Luxury car penetration in Indian PV market stand at ~1%, one of the lowest globally. In CY24, Domestic annual luxury car sales stood at ~51.5k units amidst total PV sales pegged at ~4.3 million units. Thus, with significant growth in income levels, consequent rise in HNI’s/UHNI’s share of population & growing consumer preference for premium products, there exists significant tailwind of growth for luxury car segment in India.
Axis Securities has listed its Top Conviction Ideas based on Q3FY25 from the Cement, Metals & Mining, Pharma, Banking, Financial Services & Insurance (BFSI), Infra, Chemicals & Midcaps, FMCG, Retail and Auto/ Auto Ancillaries
NIFTY has declined by 4.8% since our last report (Jan10,2025) in an environment of tepid consumer demand, weak currency and geopolitical headwinds post resumption of office by President Trump in USA. Currency and FII lead headwinds abound as trade deficit is all set to cross USD250bn while decline in net FDI flows (USD38bn in FY22 to 0.5bn USD in FY25 YTD) is pressuring INR. While RBI has spent USD70bn+ in supporting INR, FII selling has also led to tight liquidity in markets
With active expansion in non-auto space, robust order book and deleveraged B/S, we have a positive view on Sansera amid structural positives being healthy double-digit margins and return ratios profile. We retain our BUY rating on SEL, valuing it at ₹ 1,620 i.e., 24x PE on FY27E
We believe Thangamayil Jewellery, a leading jewellery player in Tamil Nadu, is set to achieve 28%, 34%, and 40% revenue, EBITDA, and PAT CAGR, respectively, over FY24-27. This growth will be driven by the benefits of formalisation, accelerated store expansion, its value-for-money offerings, and the easy availability of capital at competitive interest rates.
We recently hosted the management of Solar Industries (SOIL) for an interaction with investors. Key points: 1) Defence and exports & overseas segments could shepherd growth over the next five years; 2) EBITDA margin may sustain at ~27% over the next few years; 3) capex intensity could significantly rise in next five years; 4) favourable macro environment in ammunitions may be a significant tailwind; and 5) focus on indigenisation remains intact. We believe the recent stock price correction provides a good entry point in SOIL. Going forward, growth is likely to be driven by high-margin segments, and SOIL could go further up in value chain to platforms from materials. Retain BUY with an unchanged TP of INR 13,720 on 60x FY27E EPS
Valuation at 24.4x P/E on FY27E basis looks attractive given the strong industry tailwinds and healthy visibility on earnings growth in the coming period. We recommend BUY on ACE with a revised target price of ₹ 1500 per share (based on 30x FY27E EPS)
Hi-Tech pipes has mammoth growth prospects in the structural steel tubes space given its (a) Capacity expansion from 0.58 MTPA in FY23, 0.75 MTPA in FY24 to 1 MTPA in FY25E, (b) Transition from generic products to value-added products, (c) Product portfolio enhancement on back of Solar torque tubes, color coated roofing sheets and (d) Healthy demand for structural steel tube over medium and long term (Budgeted Allocation for Jal Jeevan Mission of Rs 67,000 cr in Union Budget 25-26)
Ahluwalia Contracts (India) Limited is a leading construction company operating across residential/commercial complex, hotels, hospitals, institutional/corporate offices, IT parks, Railway station redevelopment, metro station/depot, parking lot etc
valuations have become more reasonable and present market provides extremely lucrative opportunities for long term wealth generation. Encouragingly, global and domestic interest rate cycle has started its downward trajectory & should support equity valuations going forward. We believe any dips should be used to build a long-term portfolio of quality stocks
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