April 22, 2025

LATEST NEWS

>> 9:27 AM

IndusInd Bank: The bank has now appointed EY to conduct a forensic audit into a Rs. 600 crore discrepancy related to interest income in its microfinance portfolio, flagged during the statutory audit. This is separate from the ongoing Grant Thornton Bharat probe into forex derivatives portfolio irregularities. Negative read through.

TOP NEWS

RBI has revised its LCR guidelines favourably, in contrast to previously draft guidelines. Final guidelines has proposed - a) the runoff rate for digital deposits to 2.5% from 5%, b) reduction in the run-off rate for non-financial entities by 60%, c) include deposits which are pledged to avail credit in the outflows. Thus, norms are positive for the banking sector as this will provide strong support to the credit cycle as ~Rs2.5-Rs3tn additional liquidity will be released. The guidelines will be implemented from April-26. Moreover, the banks which have higher wholesale deposits, will benefit more as run off rate on wholesale deposits has been substantially reduced - Positive for RBL Bank, Kotak, AU SFB, BOB, Indusind.

Steel Stocks: The government imposed a 12% safeguard duty on some steel imports from developed economies, China and Vietnam. The duty is applicable for 200 days to protect Indian players from cheap Chinese steel imports. Positive for the likes of SAIL, JSW Steel, JSPL, etc.

Coal India: The company signed a non-binding agreement with Damodar Valley Corp to set up ultra supercritical units for Jharkhand Thermal Power Station. The capacity would be of 2x800 MW for a total investment of Rs. 16,500 crore. The share of Coal India will be 50% in the investment. Positive

Brigade Enterprises has signed a Joint Development Agreement for a plotted development project in Malur, East Bengaluru. Spanning approximately 20 acres, the project has an estimated Gross Development Value (GDV) of ₹175 crore with a total development potential of 0.45 million square feet. This move reinforces Brigade’s focus on expanding its presence in the Bengaluru real estate market. Positive

Mahindra Logistics: Mahindra Group appointed Hemant Sikka managing director and chief executive of Mahindra Logistics Ltd (MLL). Sikka had been the president of the farm equipment business since 2020. Farm equipment division is one of the largest and profitable businesses of the company. Positive

Tata Power: The company tied up with Tata Motors to set up a 131 MW wind-solar hybrid project. It will power Tata Motors’ six manufacturing plants in Maharashtra and Gujarat towards RE-100 milestone and Net-Zero emission aspiration.

HG Infra: Company has been declared as a qualified bidder by the Gujarat Urja Vikas Nigam Ltd for 300 MW/600 MWH for a contract value of Rs 2.856L/ MW/ month for setting up of Standalone Battery Energy Storage Systems in Gujarat under Tariff-Based Global Competitive Bidding (Phase-VI). GUVNL issued this tender in January 2025, the projects will operate under the Build-Own-Operate (BOO) model and will supply energy storage services to the state’s power distribution companies. Positive

Solar manufacturing companies: US has imposed substantial new tariffs reaching up to 3,521 per cent on solar imports from select Southeast Asian nations ( Cambodia, Vietnam, Malaysia and Thailand). The US imported $12.9 billion in solar equipment last year from the four countries that would be subject to the new duties. This would benefit Indian solar manufacturing companies exporting to US. Premier Energies, Waaree energies would be benefited in the long run

EARNINGS PREVIEW

INVESTMENT CALL

First Cut: Mahindra Logistics Q4FY25 Consolidated Results – Revenue Below Expectations, EBITDA Margin Beats, Net Loss Persists

• Mahindra Logistics reported consolidated net revenue of Rs. 1,569.5 crore for Q4FY25, up 8.2% YoY but 6.9% below our expectations. The operating margin stood at 5%, an improvement of 105 bps YoY and 56 bps above our estimates. For FY25, revenue reached Rs. 6,105 crore, growing 11% YoY, driven by strong performance across 3PL, Last Mile Delivery (LMD), and Cross-Border services.
• Losses in the Express business were reduced by 21%, and the EBITDA margin improved by 801 bps, supported by effective cost optimization measures. The company will continue investing in capacity expansion, particularly in the Eastern and North-Eastern regions, with a focus on warehouses, delivery stations, and express logistics.
• The consolidated net loss stood at Rs. 6.8 crore in Q4FY25, narrowing compared to both Q3FY25 and Q4FY24. During the year, MLL entered into a 50:50 joint venture with Seino Holdings to offer integrated logistics solutions to Japanese auto and auto-ancillary clients.
• We have a Buy rating on the stock and will provide a detailed update following our interaction with the management later today.

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Stock Update: Mastek Q4FY25 Consolidated Results – Mixed Quarter, UK to drive growth

·        Reported revenues stood at $104.6 million, up 2.9% q-o-q in CC terms, beating our estimates of 1.8% q-o-q growth in CC terms.

·        EBITDA margin declined ~85 bps q-o-q to 15.3%, missing our estimates of 15.9%. The 12 months order backlog was Rs 2,290.9 crore up 7.1% q-o-q/ 5.6% y-o-y.

·        Management expects growth in core business and core markets (UK and Europe) to stay extremely healthy in FY26.

·        We maintain BUY rating with an unchanged PT of Rs. 3,030 (valued at 20xFY27 E EPS). At CMP, the stock trades at 18.6/15.3x FY26/27E EPS

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Result summary                                                                       Rs Crore

Actual Vs Estimates                                          Rs Crore

OTHER NEWS

Hindustan Unilever: The company completed the acquisition of 90.5% stake in skincare brand Minimalist's parent company Uprising Science for Rs 2,706 crore.

One 97 Communications (Paytm): The company’s subsidiary, Paytm Money, has announced new cost-effective interest rates and a revised brokerage structure for its recently launched Pay Later (MTF - Margin Trading Facility) offering. The platform aims to enhance affordability for both retail and high-value investors.

Poonawala Fincorp: MobiKwik, which offers a wide range of payments and financial products, has announced a strategic partnership with Poonawalla Fincorp to offer instant personal loans.