Jefferies on Bajaj Fin*
Buy, TP Rs 8400
2Q largely in line with 29% growth in AUM but profit growth lagging at 13% YoY (Rs40bn) due to surge in credit costs
Stability in NIMs key +ve
If credit costs stabilise(as mgt guided) would help BAF revert to +20% earnings growth from FY26
*HSBC on Zomato*
Buy, TP Rs 330
Food was in line, while QC performed better than expectations
Margins largely stable q-o-q, due to continued investment in QC capacity & brand building
Fund raise to provide resources so co can remain aggressive in a highly competitive market
*Nomura on Zomato*
Buy, TP 320
Q-commerce remains on fast growth lane
USD1bn capital raise to fortify b/s
Food delivery (FD) business maintains steady growth path
Q-commerce – to prioritise growth while ensuring neutral EBITDA in the near-term
*Jefferies on SRF*
U-P, TP Rs 2070
Very weak print with Chemical segment driving the miss and mgmt flagging inventory destocking impacted offtake of few key molecules in specialty chemicals.
While mgmt guides for a better 2H, note it is seasonally stronger half
*Jefferies on ICICI Pru Life*
Buy, TP Rs 860
Reported 2% YoY growth in VNB to Rs5.8bn, tad below estimates, partly due to lagged repricing ahead of change in surrender norms.
Premium growth of 21% was led by Ulips and annuity; most channels grew well.
*HSBC on ICICI Pru Life*
Buy, TP Rs 850
VNB was c4% higher than HSBCe in 2QFY25; VNB growth has bottomed and should grow at a healthy +25% y-o-y in 2HFY25e
Over the medium-term, too, it can deliver healthy sustainable VNB growth by balancing margins & premium growth
*MS on Can Fin Homes*
OW TP Rs 1095
PAT was in line
Calculated NIM was 9bps above our estimate at 3.8%.
Higher operating costs (+22% QoQ) were offset by lower credit costs (15bp; we were at 20bp).
Disbursements (+18% YoY) picked up in line with guidance.
*Nomura on Persistent*
Neutral, TP Rs 5200
Resilient growth driven by strong execution
Deal wins healthy;
2QFY25 revenue growth ahead of expectations
Margin to improve in 2H FY25, & still aiming for 200-300bp improvement in long-term
Trading at 35.7x FY27F EPS
*MS on M&M Fin*
EW, TP cut to Rs 285
PAT missed MSe (conservative) by 2% but consensus by >20%.
ROA guidance has been cut to 1.8-2% from an aspirational 2.5% & later a plausible 2.2%
Risk-adjusted return emergence remains an issue
Val looks full, 2HF25 should see seasonal strength
*Bernstein on Paytm*
O-P, TP Rs 600
2Q GMV (+5% QoQ) & merchant loan disbursals (+32% QoQ) as key +ves, while a continued decline in MTUs and a sequential fall in personal loan disbursals were the key -ves.
significant effort on cost control was also visible
*GS on India – cut to Neutral from Overweight*
Structural appeal intact, but economic growth and profits are slowing down
High starting valuations, less supportive backdrop could constrain n/t upside
A large ‘price correction’ is less likely given support from domestic flows
Markets could ‘time correct’ over the next 3 to 6 months
Tactically lower Indian equities from Overweight to Neutral in Asia/EM allocations
Revised NIFTY 12m target to 27,000 from 27,500 – implies 9% upside
3M/6M targets at 24,500 (-1%)/25,500 (+3%)
Overweight on Autos, Telcos, Insurance, Realty (Upgrade), Internet (Upgrade)
Downgrade cyclicals like Industrials, Cement/Chemical and Financials
Focus on quality, earnings visibility, targeted alpha themes
