Senco offers the best brand accessibility vs peers in terms of product, price, and penetration in the eastern region. Senco leverages its multi-decadal relationship with karigars (in Kolkata) to offer relatively light-weight ornaments with a heavy look. This helps Senco to differentiate itself from players who offer heavier jewelry (higher grammage). Merchandise at stores is localized with focus on addressing the entire middle class of the local catchment through its light-weight jewelry
We initiate coverage on Stovekraft (SKL), the leading kitchen and home appliance player (brand Pigeon), with BUY and TP of Rs1,350/sh at 20x Sep-26E EV/EBITDA (56% upside). SKL is growing significantly ahead of peers (~15pps share-gain) on i) massive cost-leadership, led by deeply-entrenched manufacturing; ii) strong new product innovation capabilities and strategic ‘value for money’ positioning; and iii) improving branding/distribution expansion, including new-age channels (e-com, modern retail).
Bajaj Housing Finance Ltd (BHFL) was classified as an upper-layer NBFC as per scale-based regulations, and so it got listed within three years of this classification. We have worked out three scenarios, and taken a hold-co discount of 15% to be conservative, even though present tax considerations don’t mandate a hold-co discount. We have taken a 50% weightage for our base scenario, 40% for our bear scenario, and 10% for a bull scenario. In the bull case, we assumed a P/E multiple of 30x – c.20% lower than +1sd of BAF. We are using earnings multiple for the standalone entity, given it is a fast-churn, high-velocity, consumption-driven credit business. We are using price-to-book multiple for the housing finance entity as it’s a traditional lending business
We initiate coverage on Aadhar with a BUY rating and RGM-based FV of Rs550/share (41% upside). Aadhar stands out versus most affordable peers due to a larger balance sheet, longer vintage and superior RoEs. On the other hand, its loan growth (21% CAGR during FY2024-27E) is comparable more to mature housing finance companies than fast-growing smaller affordable HFCs.
HG Infra Engineering Ltd is a Jaipur (Rajasthan) based infrastructure company having primary focus on Roads and along with railways and solar sectors. Additionally, the company is actively looking to diversify itself by targeting into water infra segment
Till date, GRAN has gone through 24 USFDA inspections since 2009. Out of 24 inspections, Gagillapur (Medchal-Malkhajgiri) has been inspected six times. With a sound regulatory track record, the company received either Voluntary Action Indicated (VAI) or No Action Indicated (NAI) classifications in these inspection.
India’s Electronics Manufacturing Services (EMS) industry is witnessing a strong revenue growth trajectory, primarily driven by healthy industry demand, the addition of new segments and onboarding of new customers, increasing domestic manufacturing, import substitution, and global partnerships. In this report, we discuss the healthy revenue growth visibility within the sector and the scope to improve margin, leading to a strong earnings growth trajectory. Our coverage universe includes Kaynes Technology (KAYNES), Avalon Technologies (AVALON), Syrma SGS Technology (SYRMA), Cyient DLM (CYIENTDL), Data Patterns (DATAPATT), Dixon Technologies (DIXON), and Amber Enterprises (AMBER)
NMDC’s stock has been under pressure amid falling iron ore prices along with lower volumes during Apr-Aug‘24 due to labour strikes, heavy monsoons and a few logistics constraints. We believe global iron ore prices have bottomed out at ~USD90/t and reckon they shall recover and average USD105–110/t in FY25E/26E
SENCO is strategically expanding its presence in eastern markets and other regions. The company aims to grow its consumer base by focusing on lightweight jewelry and capitalizing on the trend of studded jewelry, thereby expanding into more geographical areas. We reiterate our BUY rating on the stock with a TP of INR1,350 (based on 35x Jun’26 P/E).
We recently met Mr. Shyam Srinivasan, the outgoing CEO of Federal Bank (FB), to reflect on the bank’s evolution during his tenure and the key areas that need incremental attention for the bank to reset its ceiling. With its loan book at INR2.2trn and the deposit base at INR2.7trn, FB has broken through the midsized banks league and has steadily narrowed the gap with larger peers.
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