Latest news with #YESSecurities
Mint
21-05-2025
- Business
- Mint
Hindalco share price: Should you buy, hold or sell post Q4 results, dividend announcement?
Stock Market Today: Hindalco share price was rangebound in the morning session on Wednesday, following the announcement of its March quarter results (Q4) and a dividend by the company. During the trade, Hindalco stock hit the day's high of ₹ 671.50 and a low of ₹ 655. As of 11.40 am, the metal company's stock was trading 0.10% lower at ₹ 662.05. Analysts, meanwhile, remain split on the stock post the earnings announcement. Hindalco Industries on Tuesday announced that its consolidated net profit for the March quarter increased by 66% to ₹ 5,283 crore from ₹ 3,174 crore during the same period last year. Revenues from operations in Q4FY25 stood at ₹ 64,890 crore, about 16% higher than the ₹ 55,994 crore recorded in the same quarter of the previous fiscal year. The upstream operations in the aluminium business lifted the show. In comparison to the same quarter previous year, the fourth quarter's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 43% to ₹ 10,296 crore. Analysts, while positive on the domestic aluminum business (both upstream and downstream), are watchful of its US subsidiary Novelis' performance in the wake of US President Donald Trump's tariff announcements. YES Securities post Q4 results said that the downstream capacities are ramping up, but near-term headwinds persist for Novelis, leading them to assign a 'Neutral' rating on the stock. Hindalco delivered a strong Q4FY25 performance, surpassing consensus expectations, which, as per YES Securities, were driven by firm aluminium and copper prices, a supportive macro environment, and a largely stable cost structure on a sequential basis. 'With the upstream aluminium segment posting a strong EBITDA/tonne of $1,684, up from $1,480 in Q3FY25 and much higher than $967 in Q4FY24, the Indian aluminium business for Hindalco continues to reach new operational milestones,' it said. Sequential improvement was also seen in the downstream aluminium business, where EBITDA/tonne increased from $179 in the prior quarter to $240. The brokerage values Hindalco on a SOTP basis to arrive at a revised target price of ₹ 721/share. Motilal Oswal Financial Services expects a healthy consolidated performance for FY26 or 27, mainly driven by the strong domestic operations. This prompted the brokerage to raise its EBITDA estimates for FY26 and FY27 by 3% and 2%, respectively. The stock, as per MOFSL, trades at 5 times enterprise value by EBITDA and 1.2 times Price-to-Book value on FY27 estimates. It reiterated a 'Buy' rating on Hindalco with a revised SoTP-based target price of ₹ 790.
India Today
09-05-2025
- Business
- India Today
YES Securities raises Paytm target to Rs 975 on profitability turnaround and surge in merchant lending
In its Q4FY25 result note on Paytm (One97 Communications Ltd.), YES Securities has maintained an ADD rating and raised the stock's target price to Rs 975 from Rs 915, citing improvements in contribution margin, operating efficiency, and lending momentum. The brokerage noted meaningful sequential gains across key financial and operating metrics, even as regulatory incentives like UPI subsidies moderated grew 4.6% quarter-on-quarter to Rs 1,911 crore, with payment services revenue up 4.3% QoQ and financial services revenue up 8.6% QoQ, according to the report. Despite a sharp drop in UPI incentives (from Rs 288 crore in Q4FY24 to Rs 70 crore in Q4FY25), contribution profit rose 11.8% QoQ to Rs 1,072 crore, resulting in a contribution margin of 56.1%, up by 363 basis rise in contribution margin was driven by improvement in net payment margin and cost optimisation, especially in processing charges,' the analysts stated. The report highlighted that payment processing charges declined 8.8% QoQ, benefiting from favourable mix, seasonality, and partner rate adjustments. These efficiencies, combined with stable employee and platform costs, led to EBITDA before ESOP turning positive at 81 crore, compared to a loss of Rs 40 crore in the previous quarter. EBITDA margin improved by 642 bps sequentially, reaching 4.2%.YES Securities also noted that marketing, employee benefits, and software costs were largely flat or lower, indicating tight cost lending, merchant loan disbursals grew 12.6% QoQ to Rs 4,320 crore, with 50–60% of disbursements now under the Default Loss Guarantee (DLG) model. The report observed that nearly half of the merchant loans were repeat transactions, suggesting strengthening borrower behaviour and product DLG model is gaining momentum with lenders, and the higher-margin lending mix is helping revenue stability,' the report merchant subscription base rose 6% QoQ to 12.4 million, while the company continued to expand its device-led monetisation footprint across offline Securities reaffirmed Paytm's medium-term guidance of 30–35% revenue growth and 15–20% EBITDA margin, stating that future margin expansion is likely as ESOP-related expenses taper and monetisation brokerage further noted that ongoing discussions around MDR on UPI for large merchants could result in 5–8 basis points upside in net margin if implemented.'We maintain ADD rating on Paytm with a revised target price of Rs 975, valuing it at 5.4x FY27 Price-to-Sales,' the report concluded.
Mint
23-04-2025
- Business
- Mint
Axis Bank Q4 results preview: Net profit expected to fall 5% YoY; margin pressure seen with sluggish loan growth
Axis Bank, the third largest private sector lender in India, will report its Q4 results on Thursday, April 24. Along with its financial results for the fourth quarter of FY25, the bank will also declare its earnings for the full financial year ending 31 March 2025. The private lender Axis Bank is expected to report muted earnings performance during the January-March quarter of FY25, highlighted by tepid margins and sluggish loan growth. While asset quality ratios are likely to see a flat trend, credit cost is expected to decline for the bank. Axis Bank is projected to report a net profit of ₹ 6,773 crore during the quarter ended March 2025, registering a fall of 5% from ₹ 7,129.7 crore, from the year-ago period, according to Livemint poll. The bank's net interest income (NII) in Q4FY25 is estimated to grow by 6.2% to ₹ 13,900 crore from ₹ 13,089 crore, year-on-year (YoY). Other income of the lender is estimated to be better, and hence cost ratios would be lower. Axis Bank's net interest margins (NIMs) are expected to come under pressure in Q4FY25. NIMs are estimated to fall 14 basis points (bps) to 3.9%. 'NII growth will be slightly slower than average loan growth due to fall in yield on advances outpacing cost of deposits. Consequently, NIM will be lower sequentially,' YES Securities said in a note. Analysts expect Axis Bank's advances to grow by 9.27% YoY to ₹ 10.6 lakh crore in the March 2025 quarter, as compared with ₹ 9.7 lakh crore in the same period last year. Deposits during the quarter are expected to grow 8.4% to ₹ 11.6 lakh crore from ₹ 10.7 lakh crore, YoY. 'Expect a softer QoQ growth in loan book, and similar deposit growth. NIM continues to be a key monitorable. We expect steady NIMs or a marginal decline. Opex trend would lend support to core PPoP growth,' Elara Capital said. Asset quality of the bank is expected to remain stable sequentially. Motilal Oswal Financial Services expects the gross non-performing asset (GNPA) ratio during the March quarter to be flat quarter-on-quarter (QoQ) at around 1.5%. The net NPA (NNPA) ratio is also estimated to be flat at 0.4%, similar to that in the December quarter. Axis Bank's management commentary as regards progress on deposit growth, outlook on Pre-Provisioning Operating Profits (PPoP) growth and credit cost outcomes are likely to be key monitorables during the Q4 results. Axis Bank share price has demonstrated resilient performance despite recent volatility in the Indian stock market. The banking stock has surged over 13% in the past month and recorded a robust gain of more than 27% over the last three months. On a year-to-date (YTD) basis, Axis Bank shares are up nearly 14%, while the stock has advanced approximately 55% over the past year. Over a five-year period, Axis Bank shares have delivered multibagger returns of around 180%, underscoring strong long-term growth. At 2:40 PM, Axis Bank shares were trading 0.62% lower at ₹ 1,209.55 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 23 Apr 2025, 02:41 PM IST
