Latest news with #EmkayGlobal
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Business Standard
6 days ago
- Business
- Business Standard
LTIMindtree Q1 steady; analysts see signs of revival under new leadership
Brokerages on LTIMindtree: LTIMindtree reported a stable set of numbers for the first quarter of FY26, with a Y-o-Y net profit rise of 10.6 per cent to ₹1,254.6 crore and revenue up 7.6 per cent at ₹9,840.6 crore. On a sequential basis, profit grew 11.2 per cent, while revenue inched up 0.7 per cent. While the company's top line marginally missed Bloomberg estimates of ₹9,855.4 crore, the bottom line outperformed expectations pegged at ₹1,194 crore. Brokerages viewed the results as largely in-line, with positive commentary on margin expansion, deal wins, and a visible shift in momentum under the new leadership of CEO and MD Venu Lambu. "We had a promising start to the year delivering broad-based growth, expanding margins, and making significant progress on our strategic priorities," Lambu said, attributing the gains to initiatives like the Fit4Future programme, sales transformation, and focus on AI. "While the macroeconomic environment remains challenging, I'm confident that our disciplined execution and unwavering client focus will continue to drive our performance," he added. In dollar terms, revenue stood at $1,153.3 million, reflecting a growth of 2 per cent Q-o-Q and 5.2 per cent Y-o-Y. Constant currency (CC) growth was 0.8 per cent Q-o-Q. Ebit margin expanded by 50 basis points to 14.3 per cent, despite seasonal visa costs and forex headwinds, aided by 100bps cost savings from Fit4Future - a programme aimed at improving operational efficiency. Brokerage views Analysts at Emkay Global called the operating performance 'mostly in-line', noting that growth was broad-based across verticals including Consumer, Healthcare, Life Sciences, Public Services, and BFSI. The brokerage highlighted the resilience in deal momentum, with total contract value (TCV) of $1.6 billion, marking the third consecutive quarter of over $1.5 billion in order inflows. The book-to-bill ratio stood at about 1.4x. Emkay sees continued demand for cost-saving initiatives, vendor consolidation, and tech modernisation amid macro uncertainties. It marginally tweaked FY26–28E EPS estimates by 0-1 per cent and maintained an 'Add' rating with a target price of ₹5,400, valuing the company at 26x FY27E EPS. Nuvama Institutional Equities echoed a similar tone, describing the results as 'decent' and in-line with its expectations. Ebit margin improvement and consistent deal wins reflected operational discipline. TCV rose 1.9 per cent Q-o-Q and 16.4 per cent Y-o-Y to $1.63 billion. The brokerage noted that LTIM has faced multiple headwinds in recent years – both macro and micro – but sees early signs of a turnaround under Lambu's leadership. "The company now appears to be turning the corner under the new CEO... targeting industry-leading growth and improved margins," it said in its note. Thus, Nuvama has upgraded its valuation multiple to 30x FY27E PE (from 25x), and maintained a 'Buy' rating with a revised target price of ₹6,200 (earlier ₹5,200). Client, people metrics The company had 741 active clients as of June 30, 2025. Notably, the number of $1 million+ clients grew by 14 Y-o-Y to 404, while $5 million+, $10 million+, and $50 million+ clients rose by 11, 3, and 2, respectively. On the people front, LTIMindtree had 83,889 professionals, with trailing 12-month attrition at 14.4 per cent. Utilisation excluding trainees stood at 88.1 per cent. With margin tailwinds from efficiency programmes, strong order book, and optimism around demand recovery, analysts believe LTIMindtree is gradually regaining investor confidence, particularly under the focused leadership of Venu Lambu.
Mint
05-07-2025
- Business
- Mint
HDB Financial shares see strong action in listing week. Is it still a stock to buy?
HDB Financial share price: In a strong listing week action, HDB Financial share prices have offered the investors who bet on its initial public offering (IPO) with solid 14% returns in just three sessions. HDB Financial's share price had listed at a premium of 12.8% at ₹ 835 on both the BSE and NSE and extended gains to settle at over 13% gains above the IPO price of ₹ 740. While the stock gained on Thursday and took a breather on Friday, it managed to deliver over 14% gains during this period. HDB Financial shares' high stands at 891.65 while its low is at ₹ 827.50, which is still at a premium to the issue price. On the listing day itself, July 2, Emkay Global released an initiation coverage report on the HDFC Bank subsidiary, with a 'Buy' rating and a target price of ₹ 900 per share for June 2026. This signals another 7% upside in HDB Financial share price from current levels. Vinit Boljinkar, Head of Research at Ventura Securities, also believes the momentum in HDB Financial Services stock could continue to thrive in the long term. He lists three compelling factors that could sustain interest in HDB Financial shares: 1. Market Position: HDBFS is the fourth largest retail-focused NBFC in India, serving a robust retail customer base of 1.9 crore. 2. Strong Loan Growth: The company has demonstrated healthy loan book growth with a two-year CAGR of 23.5%, and with 73% of its loans secured. It has a lower risk profile compared to peers like Bajaj Finance, which stands at 60%. This secured loan base enhances its stability in the long run. 3. Parentage: As a subsidiary of HDFC Bank, HDBFS enjoys strong brand recognition, an extensive distribution network, and low-cost funding, which positions it for continued growth and profitability. Brokerage Emkay Global also suggests three strong fundamental factors behind its bullish stance, ranging from its diversified operations (geographically and produce-wise); its strategy to focus on direct sourcing (~82% of FY25 disbursements), remote areas (70% branches are in tier 4 towns and beyond), and low-to-mid-income groups; and a favourable interest rate cycle amid frontloaded repo rate cuts, making HDB Financial well positioned to improve profits and growth. Commenting on the strategy for retail investors regarding HDB Financial shares, Vinit Bolinjkar recommended a 'HOLD' strategy for long-term gains. Strong retail market position, production diversification and valuation advantage are some of the factors behind his view. At an FY25 P/B of 3.2x, HDB Financial shares trade at a lower multiple compared to Bajaj Finance (5.85x), offering a potential valuation gap for investors to capitalise on. From the NBFC space, his top picks remain Bajaj Finance and HDB Financial based on growth potential, low NPAs, and strong backing. However, for risk-averse investors, Cholamandalam and Shriram Finance may be attractive due to their lower valuations, he added. Disclaimer: This story is for educational purposes only. 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.
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Business Standard
02-07-2025
- Business
- Business Standard
HDB Financial shares get first 'Buy' call; Emkay Global predicts 22% upside
HDB Financial share listing: HDB Financial Services, the non-bank financial arm of HDFC Bank, has received its first 'Buy' rating with brokerage Emkay Global Financial Services predicting roughly 22 per cent upside in the share price. In a recent note, analysts at the brokerage said HDFC Bank's 'strong' parentage provided HDB Financial Services with the right ingredients (best price, quantum of funds (AAA rating), and strong brand visibility) to become a meaningful lender at scale. "Further, HDB's stable top management has helped it become a lender for the underbanked and unbanked segments, to enterprise 'Bharat'. HDB Financial Services, now, caters to over 19 million customers spread over 1,770 branches, with over Rs 1.1 trillion asset under management (AUM)," Emkay Global said. On the bourses, HDB Financial Services listed on the stock exchanges at a 13 per cent premium. As against the issue price of ₹740 per share, HDB Financial listed at ₹835 per share on the BSE and the National Stock Exchange (NSE). The stock, later, hit a high of ₹845.75 per share on the BSE and ₹849.85 per share on the NSE. Going ahead, Emkay Global has set a one-year share price target of ₹900, implying 22 per cent upside over the issue price. The brokerage values the stock at 3 times FY27E price-to-book (P/B). "The 20 per cent AUM CAGR, and 2.7 per cent RoA and 17 per cent RoE, backed by the credible and stable management, will drive a gradual re-rating," it said in its coverage initiation report. HDB Financial outlook: Emkay Global view According to Emkay Global Financial Services, HDB Financial Services' widespread reach, origination capabilities, and improved capital adequacy post-IPO will allow it to capture the credit-demand uptick amid growth stimulation push by the regulator/government, and improve net interest margin (NIM) amid frontloaded repo rate cuts. HDB Financial's focus on the direct origination and collection model, it added, results in higher opex, which should also support relatively higher net yields. "Overall, the diversified product mix and continued focus on the overlooked segments should support steady, AUM growth, compounding to ₹1.8 trillion over FY25-28E. Plus, better cost of borrowings and moderated credit costs should drive the RoA by FY28E," Emkay Global said. HDB Financial: A long-term buy Notably, HDB Financial Services has been able to grow its AUM and pre-provisioning operating profit (PPoP) at a 23.7 per cent and 12.9 per cent CAGR, respectively, over FY23-25, compared to the peer average of 25.3 per cent AUM growth and 19.4 per cent PPoP growth. "We expect that its AUM and disbursement will witness higher growth compared to FY25, led by higher urban and rural consumer demand driven by government's intervention in reducing income tax rates, RBI's efficient inflation management and expected cuts in GST rates for the overall consumption basket,' said those at Deven Choksey Research in a pre-IPO note. Given that HDB's initial issue was priced at 3.4x TTM P/B, compared to the peer average of 4.4x TTM P/B, the brokerage viewed the stock as "attractively priced" considering its parentage, peer group ROA average, and its growth potential. "Strong parentage and much smaller in size as compared to its core peer (Bajaj Finance) provides a long runway for growth. Additionally, a favourable macro environment will act as a tailwind for the sector in the near to medium term. We remain assertive from a medium to long-term perspective," analysts at Mirae Asset Sharekhan noted.
Time of India
22-06-2025
- Business
- Time of India
Oil prices may surge as US attack on Iran heightens geopolitical tensions
The US bombing of Iran's nuclear sites has led to a widening of the Israel-Iran war and a further escalation in geopolitical tensions that could lead to a surge in global oil prices, which have already shot up by close to 20 per cent this month. The benchmark Brent crude futures were trading at around $77 a barrel, and the market is reported to be bracing for another spike in prices with the US having stepped into the Middle East conflict . A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in the prices. Shipping could also get hit as the Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran. India imports around 85 per cent of its crude oil requirement, and a surge in oil prices can lead to an increase in its oil import bill and push up the rate of inflation, which can hurt economic growth. The larger outflow of foreign exchange can also lead to a weakening of the rupee vis-a-vis the US dollar. According to a report by Emkay Global, Iran produces around 3.3 million barrels per day (mbpd) of crude oil (3 per cent of global) and exports around 1.5 mbpd, with China being the main importer (80 per cent), followed by Turkey. Iran is also on the northern side of the Strait of Hormuz/Persian Gulf through which 20mbpd+ of oil trade flows from countries such as Saudi Arabia and the UAE. In the past, Iran has warned of blocking this route. However, with OPEC+ announcing another higher-than-expected production hike in July, fundamentally oil markets remain well supplied and further Iranian supply cuts can be accommodated, the Emkay report states. As far as the impact on the Indian economy is concerned, the report states: "As of now, we are not changing our forecasts and continue to see CPI inflation undershooting RBI's estimate of 3.7 per cent to average much lower 3.3-3.4 per cent in FY26. We note that every $10/bl increase in oil leads to an annualised gain of 35 bps in CPI inflation. Emkay Global said it maintains FY26 CAD/GDP at 0.8 per cent, at Brent 70/bbl, with every 10$/bbl leading to upside risk of 0.4-0.5 per cent, other things remaining equal. "Our energy team maintains a positive view on India's oil market companies on the back of strong marketing margins and core GRMs (gross refining margins), also holding up to $75/bbl Brent for the remaining part of the year, the report added.
Hans India
22-06-2025
- Business
- Hans India
Oil prices may surge as US attack on Iran heightens geopolitical tensions
New Delhi: The US bombing of Iran's nuclear sites has led to a widening of the Israel-Iran war and a further escalation in geopolitical tensions that could lead to a surge in global oil prices, which have already shot up by close to 20 per cent this month. The benchmark Brent crude futures were trading at around $77 a barrel, and the market is reported to be bracing for another spike in prices with the US having stepped into the Middle East conflict. A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in the prices. Shipping could also get hit as the Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran. India imports around 85 per cent of its crude oil requirement, and a surge in oil prices can lead to an increase in its oil import bill and push up the rate of inflation, which can hurt economic growth. The larger outflow of foreign exchange can also lead to a weakening of the rupee vis-a-vis the US dollar. According to a report by Emkay Global, Iran produces around 3.3 million barrels per day (mbpd) of crude oil (3 per cent of global) and exports around 1.5 mbpd, with China being the main importer (80 per cent), followed by Turkey. Iran is also on the northern side of the Strait of Hormuz/Persian Gulf through which 20mbpd+ of oil trade flows from countries such as Saudi Arabia and the UAE. In the past, Iran has warned of blocking this route. However, with OPEC+ announcing another higher-than-expected production hike in July, fundamentally oil markets remain well supplied and further Iranian supply cuts can be accommodated, the Emkay report states. As far as the impact on the Indian economy is concerned, the report states: 'As of now, we are not changing our forecasts and continue to see CPI inflation undershooting RBI's estimate of 3.7 per cent to average much lower 3.3-3.4 per cent in FY26. We note that every $10/bl increase in oil leads to an annualised gain of 35 bps in CPI inflation. Emkay Global said it maintains FY26 CAD/GDP at 0.8 per cent, at Brent 70/bbl, with every 10$/bbl leading to upside risk of 0.4-0.5 per cent, other things remaining equal. 'Our energy team maintains a positive view on India's oil market companies on the back of strong marketing margins and core GRMs (gross refining margins), also holding up to $75/bbl Brent for the remaining part of the year, the report added.
