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.
BLSIN’s Q1FY25 performance exceeded our expectations, with multiple triggers poised to drive future growth. It is the only listed Indian company in global visa processing and G2C services outsourcing. It operates on an asset and capital-light model, thus ensuring strong cash generation, with minimal growth-related costs. New visa contracts and expansion in digital services across India are expected to boost BC revenue and profitability. The company has a history of acquisitions that have enhanced its offerings and market entry. The management plans to raise INR2,000cr via equity, despite sitting on a strong cash balance, for further acquisitions and to accelerate growth in the medium to long term. Despite a higher-than-expected earnings performance in Q1, we keep our FY25/FY26 estimates unchanged. We expect a robust revenue/EPS CAGR of 30%/35% over FY24–26E. We retain ‘BUY’ with a SoTP-based TP of INR518
We maintain a positive view on Coal India amidst healthy volume growth on the anvil, its diversification efforts in new sunrise spaces, healthy net cash positive b/s and robust dividend yield (~5%). We assign BUY rating to Coal India with target price of ₹650 i.e. 5.5x EV/EBITDA on FY26E
Amara Raja is doubling down on EVs, with lithium cell plants for NMC/ LFP chemistries slated to come on stream in FY26E/28E and investments in Inobat/Log9 entities. These efforts enhance long-term growth visibility. Retain ‘BUY’ with a TP of INR1,980 (INR2,040 earlier), based on 15x Sep-26E EPS for the core business, 3x PB for lithium battery investments and INR23/share for Inobat/Log9 investments
At the current price, the stock is trading at P/E multiple of 28.0x/24.1x of its FY25E/FY26E earnings respectively. The company has announced Rs 100 cr buyback at the maximum price of Rs 2,000 per share. The promoters will also be participating in buyback process. We maintained our buy rating on the stock with upgraded price target of Rs 2,223/- thus providing an upside potential of 21%.
Revenue for Suraj Estate Developers (SURAJEST) grew 31% YoY to INR134cr in Q1FY25 on a ramp up in execution, which led to a higher area hitting its sales recognition milestone. EBITDA grew 35% YoY to INR63cr, with a 171bp expansion in margin to 47.3% on the back of a better product mix and operating leverage benefits. PAT grew 107% YoY to INR30cr aided by lower (19%) interest cost. In Q1FY25, it re-financed the last tranche of its high-cost NCDs (INR32cr). The management expects rates to stay in the 13–13.5% range and has guided at an interest cost of INR65–70cr for FY25 (FY24: INR139cr). Pre-sales grew 5% YoY to INR140cr, led by a 13% growth in average realisation. Collections were muted at INR72cr
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