Latest news with #Emkay
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Business Standard
23-05-2025
- Business
- Business Standard
Why is Emkay Global constructive on Indian equities? Check why, top picks
With most of the events taking a back seat, the markets have been trading sideways, looking for a direction; Here's what Emkay recommend Listen to This Article The Indian stock market has been on a bumpy road over the past few months, navigating a host of global and domestic factors. On one hand, geopolitical tensions, such as the I ndia-Pakistan war following the Palgham terror attack, and US-China trade tariff negotiations, hit sentiment, while quarterly earnings and institutional investors' activity, somehow, supported the markets. Since lows made in April 2025, the Nifty and Sensex have rallied 11 per cent. With most of the events taking a back seat, the markets have been trading sideways, looking for a direction. Given this, domestic brokerage Emkay Global
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Business Standard
22-05-2025
- Business
- Business Standard
IndusInd Bank's financials may stay weak; new CEO faces challenges
IndusInd Bank may face muted financials in the medium to near-term, and the new MD and CEO will have an "uphill task" of resurrecting the bank and regaining investor trust, brokerages said on Thursday after the beleaguered bank reported its biggest net loss in 20 years. Most brokerages see downside in shares of IndusInd Bank, which posted a net loss of Rs 2,329 crore, marking one of the worst quarters in terms of both financial metrics and top level upheavals in the wake of accounting (derivative, MFI, other assets/liabilities) fraud. Brokerage firm Emkay in its note said: "We believe these developments could hurt the bank's business and financials in the near-to-medium term." Nirmal Bang, taking note of "uncertain outlook on various parameters", has cut the bank's earnings estimates by 23.6 per cent in current fiscal and 13 per cent for FY'27. Lapses in derivatives accounting, slippages in microfinance portfolio, and fraud in balance sheet disclosures have rattled the private sector bank in the March quarter. The bank's internal audit review has found "involvement of senior Bank officials, including former Key Management Personnel (KMP), in overriding key internal controls". The bank has reported likely involvement of the senior management in the accounting fraud to the central government. IndusInd Bank Board is expected to submit names to the RBI for a new MD by June 30. "We believe that given the series and intensity of frauds, the RBI may possibly consider appointing a nominee director on the Board and even push for a PSB banker as the MD, as has been seen in other beleaguered banks. Even in the event of a private banker being onboarded, as the new MD they will be faced with the uphill task of resurrecting the bank and regaining customer/investor trust," Emkay said. Nuvama Institutional Equities in its note said the new CEO will have to tighten internal controls, strengthen governance and likely rebalance the asset mix, implying a sharp slowdown in earnings growth for next two years. "Every other bank that has gone through accounting discrepancies or prior-period adjustments has taken 34 years to achieve a new normal. IndusInd, being a large bank, could take less time. Also, how retail depositors behave in the short term after back-to-back disclosures of prior-period adjustments is unknown," Nuvama said. In January, the bank's CFO Gobind Jain resigned. On April 29, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which IndusInd Board appointed a Committee of Executives to oversee the operations of the bank, till a new MD and CEO assumes charge ICICI Securities in its note said it believes IndusInd Bank would prioritise balance sheet stability vs. growth while the path to RoA revival remains uncertain, even if it was to get a signature hire. "We expect a sharp EPS (earnings per share) downgrade in consensus estimates," ICICI Securities said, while retaining its 'sell' rating on the bank with a target price of Rs 650. IDBI Capital has downgraded the scrip to 'sell' rating with a new target price of Rs 680. Even after a dismal March quarter results, IndusInd Bank shares on Thursday afternoon bounced back after falling nearly 6 per cent in early trade. The shares were trading at Rs 777.25, up 0.80 per cent on BSE.
Time of India
22-05-2025
- Business
- Time of India
Emkay picks JK Cement, Motilal Oswal, 2 more small & midcap stocks. 4 reasons why
4 reasons why Emkay remains bullish on SMIDs: Live Events Sector preferences (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In a bullish relook at the small and mid-cap (SMID) space, Emkay Global has reiterated its constructive stance on Indian equities and picked four stocks as top SMID ideas. The brokerage has added Bikaji Foods, JK Cement Sonata Software , and Motilal Oswal Financial Services to its SMID picks while maintaining confidence in Escorts Kubota Metropolis Healthcare , One 97 Communications (Paytm), and confidence in SMIDs stems from the belief that small and midcap stocks are not in bubble territory despite appearing elevated on headline P/E metrics. The brokerage argues that a significant portion of the Nifty's lower valuation is driven by heavy exposure (20%) to low P/E sectors like financials and energy, areas where SMIDs have relatively less a sector-adjusted basis, SMID stocks show no material deviation in valuations or fundamentals compared to their large-cap peers, it preference leans toward SMID-heavy sectors such as consumer discretionary and materials, while it remains underweight on largecap dominated sectors like financials and FMCG. This sectoral tilt, along with improving earnings quality and resilient fourth-quarter results, underpins the firm's confidence in the SMID segment.1) Emkay's bullish tilt toward SMID stocks is underpinned by supportive fundamentals, attractive sector dynamics, and a potential earnings upswing.2) With the US striking tariff deals with countries, market sentiment is steadying. Political uncertainties have also subsided, and a further ease in tensions would lead to outperformance in SMIDs over their larger peers.3) The brokerage sees earnings upgrades in FY26 as likely, citing softer commodity prices, signs of demand recovery, and anticipated monetary easing. Already, 61% of companies with broad analyst coverage are projected to report stronger EPS growth in FY26 versus FY25—a trend that could further strengthen if upgrades materialize in sectors like discretionary, energy, and technology.4) Valuations are viewed as neutral, with the Nifty trading around its long-term average. However, Emkay highlights that 30% of BSE 200 stocks are trading at more than one standard deviation above their historical P/E, suggesting investors are already rewarding earnings discretionary remains our top OW, with technology/healthcare/real estate /utilities as the other preferred sectors. We remain UW on financials and staples, where we see a severe growth-valuation mismatch. Our model portfolio remains unchanged this firm advises using any short-term pullbacks to accumulate high-beta SMID names.
Time of India
22-05-2025
- Business
- Time of India
IndusInd Bank to report muted financials in near-term, uphill task ahead for new CEO: Brokerages
IndusInd Bank may face muted financials in the medium to near-term, and the new MD and CEO will have an "uphill task" of resurrecting the bank and regaining investor trust, brokerages said on Thursday after the beleaguered bank reported its biggest net loss in 20 years. Most brokerages see downside in shares of IndusInd Bank, which posted a net loss of Rs 2,329 crore, marking one of the worst quarters in terms of both financial metrics and top level upheavals in the wake of accounting (derivative, MFI, other assets/liabilities) fraud. Brokerage firm Emkay in its note said: "We believe these developments could hurt the bank's business and financials in the near-to-medium term." Nirmal Bang, taking note of "uncertain outlook on various parameters", has cut the bank's earnings estimates by 23.6 per cent in current fiscal and 13 per cent for FY'27. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Lapses in derivatives accounting, slippages in microfinance portfolio, and fraud in balance sheet disclosures have rattled the private sector bank in the March quarter. The bank's internal audit review has found "involvement of senior Bank officials, including former Key Management Personnel (KMP), in overriding key internal controls". The bank has reported likely involvement of the senior management in the accounting fraud to the central government. Live Events IndusInd Bank Board is expected to submit names to the RBI for a new MD by June 30. "We believe that given the series and intensity of frauds, the RBI may possibly consider appointing a nominee director on the Board and even push for a PSB banker as the MD, as has been seen in other beleaguered banks. Even in the event of a private banker being onboarded, as the new MD they will be faced with the uphill task of resurrecting the bank and regaining customer/investor trust," Emkay said. Nuvama Institutional Equities in its note said the new CEO will have to tighten internal controls, strengthen governance and likely rebalance the asset mix, implying a sharp slowdown in earnings growth for next two years. "Every other bank that has gone through accounting discrepancies or prior-period adjustments has taken 3-4 years to achieve a new normal. IndusInd, being a large bank, could take less time. Also, how retail depositors behave in the short term after back-to-back disclosures of prior-period adjustments is unknown," Nuvama said. In January, the bank's CFO Gobind Jain resigned. On April 29, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which IndusInd Board appointed a Committee of Executives to oversee the operations of the bank, till a new MD and CEO assumes charge ICICI Securities in its note said it believes IndusInd Bank would prioritise balance sheet stability vs. growth while the path to RoA revival remains uncertain, even if it was to get a signature hire. "We expect a sharp EPS (earnings per share) downgrade in consensus estimates," ICICI Securities said, while retaining its 'sell' rating on the bank with a target price of Rs 650. IDBI Capital has downgraded the scrip to 'sell' rating with a new target price of Rs 680. Even after a dismal March quarter results, IndusInd Bank shares on Thursday afternoon bounced back after falling nearly 6 per cent in early trade. The shares were trading at Rs 777.25, up 0.80 per cent on BSE.
Economic Times
06-05-2025
- Business
- Economic Times
Marico pins FY26 hopes on rural revival, premium push
FMCG major Marico is betting on a broad-based consumption recovery and gradual margin improvement in foods and digital-first segments to power its performance in FY26 after closing FY25 on a steady note. While the company reported margin pressure during the March quarter, it expects to sustain the double-digit growth in revenue and operating profit in the current fiscal year. Analysts have raised earnings estimates by 5-9% for FY26 and FY27 supported by expectations of better top line growth and control on margin. ADVERTISEMENT Marico's consolidated revenue and net profit grew 20% and 8% year-on-year to Rs2,730 crore and Rs345 crore, respectively. The company stated that it expects gradually improving growth in the core categories on the back of moderating retail and food inflation as well as the promise of a normal monsoon season. However, higher raw material costs and advertising, sales and promotion (ASP) expenses pulled the operating margin before depreciation and amortisation (EBITDA margin) down to the 12-quarter low of 16.8%, which was also 260 basis points lower than the year-ago level. As a percentage of revenue, ASP spends was 11.2%, up from 9.9% year-ago as the company focussed on strengthening brands amid intense competition. The input costs relative to revenue increased to 51.4% in the March 2025 quarter from 48.4% in the year-ago period. According to brokerage reports, prices of key inputs including copra and vegetable oils increased by 25-48% year-on-year. Prabhudas Lilladher Capital expects prices to remain high in the near term. 'The usual 18–24 months pricing cycle has been extended, and copra prices are predicted to remain high in the June 2025 quarter,' the brokerage noted in a report. It expects margin pressures to subside after the first half of India business, which contributes over 75% to the top line, growth in volume and revenue was at a 14-quarter high in the three months ended March 2025. Volume grew by 7% compared with a 3% growth in the year-ago quarter. Revenue grew by 23% to Rs2,068 business, comprising the company's products in the haircare, food and beauty segments sold in over 25 countries, registered constant currency growth (CCG) of 16% in the March 2025 quarter. The growth rate has gradually improved from 6% in the December 2023 quarter despite macroeconomic headwinds and currency devaluations. ADVERTISEMENT The company expects to achieve a double-digit EBITDA growth in FY26 compared with 4% growth in the March quarter aided by margin expansion in the foods segment and a stronger product mix in international markets. Emkay has upgraded Marico to 'BUY' from 'Add', raising the target price by 16% to Rs810 while raising earnings estimates by 5-9% over FY26-27. Elara Capital has reiterated its 'Accumulate' rating while increasing the target price to Rs785 from Rs752. The stock was last traded at Rs 720 on Tuesday on the BSE. (You can now subscribe to our ETMarkets WhatsApp channel)
