TCI has been affected by a sluggish macro environment, although it has performed well vis-à-vis industry peers. The company remains on track to achieve profitable growth, although some volume gets sacrificed in the near term. We introduce our FY2027E earnings in this note
Factoring in its recent blockbuster performance, we have upgraded our estimates slightly. We expect revenue/EBITDA/PAT to grow 53%/56%/70% over FY24–27. Its recent fund raising will result in a slight dilution in EPS which we expect to grow at 63% CAGR. SKYGOLD can be a longterm compounding story. Given its record of overachieving its targets in the past; aggressive growth for FY24-27 and execution capabilities of management, we think that SKYGOLD can be a long-term growth story
Hindalco, part of Aditya Birla group, is India’s largest fully integrated aluminium and copper manufacturer. US based wholly owned subsidiary i.e. Novelis is the world’s largest aluminium flat-rolled products (FRP) producer and recycler.
At the current price, the stock is trading at 47.2x/29.5x of its FY25E/FY26E earnings respectively. We maintain our buy rating on the stock with an upgraded price target of Rs 1,246/- thus providing an upside potential of 24.6%.
We believe Azad stands at an interesting juncture where a massive TAM is complemented by an upcoming 95,000m2 facility. The comparison with engine products division shows that a company with 80x revenue can also record EBITDA growth of 31% and record EBITDA margin of 31.2%. Hence, we believe Azad’s journey has just begun, particularly in view of its existing customer base and potential. Besides, the adjacent opportunities in nuclear power and ATGG engines are a plus. We maintain BUY on Azad with DCF-based unchanged TP of INR 2,450
Sobha continues to provide strong growth visibility by unlocking its vast land reserves. Additionally, the ongoing fund raise and strong cash flows will enable the company to focus on new land acquisitions, which will further enhance its growth pipeline
JB Chemicals’ (JBCP) Q1FY25 revenue growth was largely in line with our estimates. Slightly higher than-expected revenue from the domestic business and improved gross margins resulted in expansion of EBITDA margins. Revenue witnessed growth of 12% YoY and 17% QoQ to ~Rs10Bn. The YoY increase was mainly driven by 22% YoY growth in the domestic formulations business whereas flat growth witnessed in the overall export business.
Sansera Engineering (SANSERA) posted its highest ever consolidated revenue in 1QFY25 at ~Rs7.44bn, up ~13%/flat YoY/QoQ. Consolidated gross margin stood at 41.8% up by ~190bps YoY. EBITDA stood at ~Rs1.28bn and margin came in at 17.1%. GM expansion was offset by higher other expenses due to an increase in global freight rates and higher staff costs due to annual hikes incorporated in the quarter
We note Eureka is progressing well across parameters of – growth, margin and cash generation. We remain constructive on Eureka following strong business tailwinds. Maintain BUY with DCF-based revised TP of INR 590 (implied P/E of 65x on FY26E EPS)
NCC is one of the leading construction companies with presence across varied verticals such as buildings, roads, water, mining and electrical. Standalone order book is at ₹ 47,625 crore, 2.5x TTM book to bill.
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