SBI, Tata Motors, Ashok Leyland, Oil India, Gujarat Gas, Aarti Industries Q2 Results 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.State Bank of India - Strong quarter; franchise on a strong footing SBI’s earnings beat our estimates on the back of higher treasury/mark-to-market gains backed by healthy loan growth, largely stable margins and in-line asset quality. Loan growth (+15% YoY) was strong across segments even as the Xpress credit portfolio continued to decelerate. Deposit growth (+9% YoY, +4.4% QoQ) was marginally soft as the current account savings account ratio dropped further to 38.4% (-64 bps QoQ), given that strong CA traction was offset by sluggish growth in SA balances. Asset quality improved as Q1 seasonality moderated, reflecting in lower slippages and credit costs. We believe SBI is well-equipped to sustain growth, given its surplus liquidity and a comfortable LDR (75%), while managing margins ahead of a potential rate-cut cycle (SBI increased its MCLR by 30 bps in H1 FY25). We reiterate SBI as our top pick and maintain Buy with a revised SOTP-based target price of Rs 1,050 (core bank at 1.5 times Sep-26 adjusted book value per share)..Tata Motors - Multiple headwinds aheadJaguar LandRover’s Q2 Ebitda margin declined 410bps QoQ to 11.7% due to lower volumes and higher VME. Overall a weak CV impacted revenues for the India CV business; however, margin improved 50 bps YoY led by savings in commodity costs. Despite lower volumes, India PV business profitability improved sequentially, with Ebitda margin at 6.2% (+40 bps QoQ), aided by a better mix. India EV margins (ex PDE) improved from 0.1% in Q1 to 1.7% in Q2 due to battery price reductions and profits on new product launches. JLR FY25 Ebit margin guidance maintained at 8.5%. While Q2 CV demand failed to pick up in line with expectations, health monsoon, pick-up in government capex and continued focus on infra are expected to drive CV demand in H2 FY25. PV growth is expected on the back of new model launches and comprehensive marketing strategy; while keeping a check on inventory. We believe there are multiple headwinds ahead: slowdown in global volumes, domestic PV industry growth normalizing post a high base of two years and slowdown in domestic EVs post subsidy expiration. We revise the SoTP target price to Rs 855/share from Rs 955 earlier. Revise rating to Reduce. .Click on the attachment to read the full report:.Divi's Labs Q2 Results Review - Custom Synthesis Drives Earnings: Dolat 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.

SBI, Tata Motors, Ashok Leyland, Oil India, Gujarat Gas, Aarti Industries Q2 Results Review: HDFC Securities

The brokerage reiterates SBI as its top pick in the sector and maintains Buy with a revised SOTP-based target price of Rs 1,050.

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SBI, Tata Motors, Ashok Leyland, Oil India, Gujarat Gas, Aarti Industries Q2 Results Review: HDFC Securities

The brokerage reiterates SBI as its top pick in the sector and maintains Buy with a revised SOTP-based target price of Rs 1,050.

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