Nomura on Infosys
Buy Call, Target Raised To Rs 1,950
Q1FY25 Was An All-round Beat
Surprise Revenue Guidance Driven By Strong Start, Deal Wins, & Acquisition Integration
Project Maximus’ Impact On Margin Continues To Play Out
Raise Our FY25-26 EPS By Nearly 2-3%, Reiterate As Top Pick
Jefferies on Infosys
Buy Call, Target Raised To Rs 2,040
Q1 Beat Estimates, Driven By Strong Revenue Growth Of 3.6% QoQ
Co Has Raised Its FY25 Growth Guidance Which Seems Conservative In Context Of Strong Deal Wins
Initial Signs Of Recovery In BFSI, Strong Deal Wins Suggest The Worst Is Behind
All-Round Improvement In Operating Performance Suggest The Worst Is Behind
Raise Estimates By 3-4% & Expect Co To Deliver 10% EPS CAGR Over FY24-27
Bernstein on Infosys
Outperform Call, Target Raised To Rs 2,100
Delivered Its Strongest Beat In 10 Quarters In Q1 Across Revenue, Margin & EPS
FY 25 Revenue Guidance Was Raised To 3% To 4% YoY CC (From 1% To 3%)
Deal Momentum Was Strong At $4.1 Bn TCV With Net New Of 57
See Beginning Of An Upcycle Trend As Growth Recovers, BFSI Inflects & AI Deals Scale Up
JPM on Infosys
OW, TP Rs 1950
1Q perfect foil to a poor 4Q24, handsomely beating rev/margin/EPS/FCF &upgrading guide with some +ve one-off revenues/margins
Cos’ new revenue guidance of 3-4% parses out as 2.3-3.3% organic implies 0.8-1.5% CQGR
GS on Infosys
Buy, TP Rs 1870
1Q beat: Upside risks to guidance
INFY 1Q, coupled with commentary from some of its peers, suggest demand environment is incrementally getting better
Expect FY25E reve growth for Infy/sector to be c.400 bps higher vs FY24
CITI on Infosys
Buy, TP raised to Rs 1850
1Q revenue came in well above expectations; Deal TCV +87% yoy LTM.
Margins were slightly ahead, aided by one off.
GS on Tata Tech
Sell Call, Target Cut To Rs 950
Q1FY25 Was A Miss With Revenue/EBITDA -2.5%/-8% QoQ & Were -5%/-9% Below Consensus
Softness Was Due To Phasing Of Customer Business In The Smaller Technology Solutions Segment
Softness Was Due To Vinfast Customer Related QoQ Moderation In Rev In Core Svcs (Auto) Biz
Going Forward, Mgmt Expects A Return To Sequential Growth In The Business In Q2-Q3-Q4 Of FY25
MS on Dalmia Bharat
Equal-Weight Call, Target Rs 1,900
Small EBITDA Beat In Q1 While Key Positive Was Better Realisations
Opex/t Was Broadly In-line With Estimate
Weak Volumes, However, Were A Key Negative
Nomura on Dalmia Bharat
Reduce Call, Target Rs 1,700
Stable Realisations Drive Significant EBITDA/t Beat
EBITDA/t Of `904/t Came In 33% Above Estimates
Expansion Projects On Track
Co Poised To Achieve 50 mt Cement Capacity By FY26 Through Organic Route
Stock Currently Trades At 11.5x 1-Yr Fwd EV/EBITDA
MS on L&T Tech
Underweight Call, Target Rs 4,300
Despite The Miss, Co Has Strong Deal Pipeline & Maintained Revenue & Margin Guidance For FY25
Ask Rate To Meet Rev Guidance Is High, & Continued Estimate Cuts Could Limit Positive Triggers
Nomura on L&T Tech
Reduce, TP Rs 4310
1Q mixed bag – slightly weaker revenue & better margins
Retains FY25F guidance of 8-10% organic growth; aspirational $1.5bn of revenue runrate needs M&A support
Front-loading of investments in FY25F; retains 16% EBIT margin guidance for FY25F
Nomura on Havells
Neutral Call, Target Rs 1,900
Q1 Margin Miss On Weaker Mix
Maintain 20%/17% Revenue Growth For FY25/26 (18%/14% Ex-Lloyd)
Price Hikes & Stable Commodity Should Support Margin
Stock Trades At 54x FY26 EPS, Which Believe Factors In Expected Earnings Recovery
Jefferies on Havells
Hold Call, Target Rs 1,880/Sh
Q1 Was In-line With Estimates
Strong Sale (+20% YoY) Was Driven By Good Offtake In Summer Products
Strong Sale Was Driven B2B Offtake, Albeit With Interim Election Impact
Lloyd Posted EBIT Margin At +3.5% In Q1 (+2.8% In Q4FY24)
Strong Capex Housing Cycles – C&W, Switchgears & Lighting Sales Declined By 11-15% QoQ
Cut FY25-27 EPS By 1-2%
Citi On Go Digit General Insurance
Initiates Buy Call, Target Rs 425
Valuing Company At 8x, FY26 Book On RoE Rising To 15-16% In FY26-27 From Nearly 7% In FY24
Expect Stable 13% Decadal CAGR In Ex-crop Non-life Premiums, Aided By Health & B2B-Oriented Biz
Despite Low Vintage, Co Sustained Industry-Leading Growth
Co Is Incrementally Opportunistic In Underwriting B2B-Oriented Business
Established Corporate Ties, Product Bundling And Robust Reinsurance Supply To Aid Growth
Factor In A 24% Gross Premium CAGR Over FY24-27
Trends In The Fast-growing B2B Business Segments Remain Monitorable
Operating Leverage Should Support The Combined Ratio
