L&T, Axis Bank, SBI Life, Petronet LNG, DCB Bank, Federal Bank, Greenlam, SRF, IGL Q1 Review: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Larsen & Toubro - Robust execution and order booking Larsen and Toubro Ltd. reported revenue/Ebitda/adjusted profit after tax at Rs 551.2/56.2/27.8 billion, a beat/(miss) of 7.6/0.7/(6.6)%. P&M margins came in at 7.6% (+20 bps YoY) and L&T expects to maintain a positive YoY margin expansion trend in ensuing quarters and retained 8.2-8.25% guidance for FY25. Despite Q1 FY25 being an election quarter/lower labour availability, L&T reported strong 15% revenue growth and maintained 15/10% revenue/order inflow guidance for FY25. The stick projects in Andhra may see revival and L&T is engaging with the state government, which may aid claims recovery and support the P&M margin. L&T expects FY25 to execute a higher share of lower-margin fixed-price export orders; it guided margin rerating to be driven by infra-segment margin improvement, largely led by internal efficiency and commodity prices remaining at the current level in fixed-price international order book. We maintain our Buy stance with a SOTP-based target price of Rs 4,030/share, given-the record high order book of Rs 4.9 trillion;likely bottoming out of infra margins;improvement in subsidiary performance; andhigher public capex towards a green economy..Axis Bank - Signs of early stress; deposit handicap prevails Axis Bank Ltd. missed estimates, largely on account of higher credit costs stemming from lower recoveries and upgrades in the corporate book and signs of early stress in the retail unsecured segments. This was partly offset by stable margins, given lower growth on both sides of the balance sheet. Deposit growth (0.6% QoQ) was muted with the CASA ratio declining 116 bps QoQ to 41.8%. Axis Bank has been incrementally leaning towards improving the quality of its deposits, reflecting in slower rise in incremental cost of deposits. The C/D ratio stayed elevated at 92.2% (Q4 FY24: 90.3%) despite modest sequential loan growth (1.6% QoQ). We argue that Axis Bank faces a steep balancing act in terms of overcoming its deposit handicap and simultaneously managing growth in unsecured retail segments (showing signs of early stress). We cut our FY25E/FY26E forecasts by ~4%, driven by higher credit costs, stemming from lower recoveries; maintain Add with a revised target price of Rs 1,260 (standalone bank at 1.8 times March-26 adjusted book value per share)..SBI Life - Mixed quarter; multiple product interventions ahead SBI Life Insurance Company Ltd.’s Q1 FY25 value of new business printed at Rs 9.7 billion (+11.5% YoY), as the VNB margin softened to 26.8% (-200 bps YoY) on the back of a higher share of ULIP in the overall APE mix at 61% (Q1 FY24: 53%), partly offset by higher efficiency in total cost ratios. The management reaffirmed its APE growth guidance of ~20% and a new business margin guidance of 28%. Based on the management commentary around a possible rebound in growth of SBI distribution and likely product interventions for the rest of the year, we raise our FY25 APE growth estimates to 18% (below guidance), on account of a lumpy base of group business during H2 FY24. Our high conviction Buy is anchored on the three powerful and sustainable moats:exclusive access to SBI’s massive distribution network (penetration at ~2%);scope for improvement in margin accretive traditional mix; andthe lowest cost (exclusive renewal comm)/APE ratio among peers (Q1 FY25: 40.5%, FY24: 41.4%). We expect SBI Life to deliver an FY24-26E APE/VNB CAGR of 18%/17%; we maintain Buy with a target price of Rs 1,860 (2.3 times Mar-26E EV)..Click on the attachment to read the full report:.Federal Bank Q1 Results Review - All Time High Profitability: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

L&T, Axis Bank, SBI Life, Petronet LNG, DCB Bank, Federal Bank, Greenlam, SRF, IGL Q1 Review: HDFC Securities

The brokerage maintains its Buy rating on L&T, SBI Life and Add rating on Axis Bank.

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L&T, Axis Bank, SBI Life, Petronet LNG, DCB Bank, Federal Bank, Greenlam, SRF, IGL Q1 Review: HDFC Securities

The brokerage maintains its Buy rating on L&T, SBI Life and Add rating on Axis Bank.

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