Latest news with #Motilal
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Business Standard
9 hours ago
- Business
- Business Standard
Nestle Q1 preview: What to expect from Kitkat maker in June quarter?
Nestle Q1 results preview: Kitkat and Maggi maker Nestle is scheduled to release its first quarter (Q1FY26) results on Thursday, July 24, 2025. Brokerages reckon Nestle's performance is likely to remain muted amid the inflationary setting across its segments. Further, a surge in the depreciation, given the commissioning of new capital expenditure and lower other non-operating income, is likely to have a bearing on earnings growth. Nestle Q1 results 2025: Profit estimates Brokerages tracked by Business Standard estimate Nestle's net profit to decline 5.6 per cent year-on-year (Y-o-Y) on average, to ₹731.85 crore as compared to ₹775.9 crore. Sequentially, the net profit is expected to fall 17.34 per cent from ₹885.4 crore in Q4FY25. Nestle Q1 results 2025: Revenue expectations Here's how brokerages expect Nestle to fare in Q1FY25: Kotak Institutional Equities: Analysts at the brokerage forecast 6.6 per cent Y-o-Y growth in net revenues, led by 6.5 per cent/7 per cent growth in domestic/exports as against 4.2 per cent/(-)8.7 per cent in Q4FY25. Consolidated revenue is pegged at ₹5,130.4 crore as compared to ₹4,814 crore a year ago. Volume (tonnage) is expected to grow at 3 per cent, a slight improvement against 2 per cent in Q4. The gross margin is likely to contract 65 basis points (bps) Y-o-Y to 57 per cent as against 65 bps decline in Q4, impacted by high inflation in coffee, cocoa, milk, wheat and palm oil prices. Earnings before interest, tax, depreciation and amortisation (Ebitda) is anticipated to grow at 8.1 per cent to ₹1,191.3 crore Y-o-Y as compared to ₹1,102.3 crore and Ebidta margin is pegged at 23.2 per cent, up 30 bps Y-o-Y from 22.9 per cent. Emkay Global Financial Services: The brokerage sees a 5 per cent topline growth in Q1FY26 to ₹ 5047.5 crore Y-o-Y with 1 per cent volume growth. To negate the inflationary stress, the company has selectively effected price hikes, although Emkay sees price growth to be lower amid increased promotion intensity. Gross margin is expected to contract 110 bps Y-o-Y to 56.5 per cent. Ebitda margin is likely to see a 70 bps contraction Y-o-Y to 22.2 per cent from 22.9 per cent. Ebitda is likely to grow 2 per cent to ₹1,121.8 crore as compared to ₹1,102.3 crore. Motilal Oswal Financial Services: Motilal analysts expect Nestle's overall sales to grow 5.7 per cent Y-o-Y, led by 5.5 per cent growth in domestic sales and 10 per cent growth in export sales. However, while demand recovery is underway, a higher dependency on urban markets may weigh on the company's volumes. The company has most likely implemented a price hike in response to rising commodity prices. Motilal forecasts gross profit margin to contract 60 bps Y-o-Y to 57 per cent, impacted by a rise in raw material prices like coffee and edible oil, while a stable Ebitda margin of 23.3 per cent in Q1FY26 is expected. Nuvama Institutional Equities: The brokerage reckons consolidated revenue to grow 4.7 per cent Y-o-Y in Q1FY26 to ₹503.87 crore. Domestic sales are likely to grow 4–5 per cent Y-o-Y, while domestic volumes shall grow 2–3 per cent Y-o-Y. Exports revenue is likely to decrease by 2–3 per cent Y-o-Y. Nuvama expects price hikes of 3 per cent in Q1FY26, mainly led by coffee and premium chocolates. The company's Ebitda is likely to grow 6.5 per cent Y-o-Y to ₹1,174 crore as compared to ₹1,102.3 crore. Given the benefit of the recent palm oil duty, Nestle's gross/Ebitda margin is expected to improve 115 bps/40 bps Y-o-Y to 56.5 per cent/23.3 per cent. As the urban slowdown tapers down likely by Q2FY26, demand trends are anticipated to further improve hereon.
Mint
12 hours ago
- Business
- Mint
Motilal Oswal sees 70% rally in this multibagger stock amid expanding order book. Should you buy?
Motilal Oswal has initiated coverage on VA Tech Wabag with a 'buy' rating, citing the company's expanding order book, improving margins and return ratios, and strong free cash flow generation. VA Tech Wabag is a leading, 100-year-old water technology company that offers end-to-end solutions in the design, construction, and operation of wastewater projects. The company has been consistently expanding its order book in recent years, driven by the growing global focus on water and waste management, a sector that involves removing contaminants from sewage or wastewater to make it recyclable, reusable, and environmentally safe. The sector is gaining momentum due to increasing environmental regulations, rising water pollution, growing water scarcity, and industrial demand for wastewater treatment. It is projected to grow from USD 329 billion in 2023 to USD 576 billion by 2032. Backed by industry tailwinds and its strong execution capabilities, VA Tech Wabag has built a robust order pipeline that underpins its future growth prospects. Motilal Oswal highlighted that VA Tech Wabag's current order book stands at ₹ 137 billion, 4.2 times its FY25 revenue, supported by a strong bid pipeline of ₹ 150–200 billion. This provides visibility for 15–20% revenue growth over the next 3–4 years. The order book includes a healthy mix of O&M projects (39%, with execution cycles ranging from 5 to 20 years) and EPC projects (52%, with 2–3-year cycles). Despite being eligible to execute large critical projects globally, it is selective in bidding (focus is on margins and cash flows) and has a win ratio of 25-30%. The brokerage also underscored the company's impressive turnaround in free cash flow over the past five years. VA Tech Wabag moved from a net debt position of ₹ 4 billion in FY19 to a net cash balance of ₹ 5.9 billion at the end of FY25. Motilal expects the company to continue generating strong free cash flows ( ₹ 3.5 billion annually during FY25–28E), driven by healthy operating performance and improvements in the working capital cycle. Return ratios have significantly improved as well. RoCE and RoIC have doubled to 20% and 28% in FY25 from 11% and 12% in FY19, respectively. RoE has risen to 13.8% in FY25, compared to 8–9% reported until FY22. For FY25–28E, the brokerage projects further improvements, with RoCE rising from 20% to 24%, RoE from 14% to 16%, and RoIC from 28% to 39%, which is all above the company's guided range. Motilal Oswal, in its bull case scenario, expects VA Tech Wabag's stock to reach ₹ 2,564 apiece, a potential upside of 70% from its recent closing price. Under the base case scenario, Motilal Oswal has set a target price of ₹ 1,900, implying a 25% upside from Monday's closing level. In the bear case scenario, Motilal Oswal sees the stock falling to ₹ 1,318, expecting 12%, 14% and 15% CAGR in revenue, EBITDA, and PAT over the same period. According to Trendlyne's shareholding data, late investor Rakesh Jhunjhunwala's wife, Rekha Jhunjhunwala, held an 8.04% stake at the end of the June 2025 quarter. The company's shares, following their one-way rally, have witnessed profit booking, resulting in three consecutive months of declines. However, the momentum reversed in March, with the stock gaining 27.6% so far. Looking further back, the stock has delivered stellar returns in the long run, currently up 1143% over the last five years. In December, the stock recorded a fresh all-time high of ₹ 1,944, edging toward the ₹ 2,000 mark. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Economic Times
2 days ago
- Business
- Economic Times
Ultratech Cement Q1 Results Preview: PAT may jump 30% YoY on cost gains, higher volumes
Ultratech Cement is expected to report a 30% year-on-year (YoY) growth in profit after tax (PAT) for the first quarter of FY26, while revenue is projected to rise 18% YoY, according to the average of estimates from five brokerages. ADVERTISEMENT The anticipated growth is largely attributed to robust volume expansion from recent acquisitions, modest price hikes across key markets, and improved operational efficiency. Brokerages estimate sales volumes between 12% and 18% YoY higher, driven by both organic momentum and inorganic contributions. Kotak expects total volumes at 34.4 million tonnes, up 11.5% YoY, while Motilal and Nuvama also attribute the increase to prior acquisitions. However, on a like-to-like basis (excluding acquisitions), Motilal estimates a 6% YoY volume growth. We factor in volumes of 34.4 million tons (+11.5% YoY, -7.3% QoQ) during the quarter led by past acquisitions. We estimate blended realizations to increase 2.2% QoQ (+2.4% YoY) on account of price hikes in most regions during the quarter. We estimate costs/ton to increase by 2.1% QoQ (-3.6% YoY) led by operating deleverage and higher fuel costs. We estimate EBITDA/ton to marginally increase sequentially to Rs 1,274/ton (+32% YoY, +2.8% QoQ) led by price hikes during the quarter, partially offset by higher costs. Grey cement volumes are expected to rise 18% YoY aided by acquisitions. Grey cement realisations to rise 1.75% QoQ. Overall, blended EBITDA/t may rise to Rs 1,084 as against Rs 951 in the same quarter previous year. Sales volume (consolidated) is expected to increase 17% YoY, aided by inorganic growth. However, on a like-to-like basis, Ultratech Cement's volume growth is estimated at 6% YoY. Blended realization is likely to increase 3% YoY. RMC revenue is expected to increase 13% YoY, whereas white cement revenue is expected to be flat YoY. Variable cost per ton is expected to be flat YoY and opex/t is expected to decline 2% YoY. We expect EBITDA/t at Rs 1,186 vs Rs 951/Rs 1,126 in 1QFY25/4QFY25. Depreciation/interest expenses are estimated to increase 37%/90% YoY. Adj PAT is estimated to increase 32% YoY. Volume growth seen at +12% YoY; -13% QoQ. Blended realisations seen +4% YoY; +4% QoQ. EBITDA/tonne seen at Rs 1,244 (+31% YoY; +10% QoQ). ADVERTISEMENT We estimate blended EBITDA/tn at Rs 1,287 for Q1FY26, up 35% YoY and 14% QoQ. This is driven by strong volume growth (+31% YoY, +2% QoQ) and cost reduction (opex/tn down 7.2% YoY and 2.9% QoQ), despite weak realizations (flat YoY, +1% QoQ). We expect realizations from white cement and RMC to offset the muted pricing in grey cement.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
14-07-2025
- Business
- Business Standard
Laxmi Dental share price rises 3%; Motilal Oswal initiates 'Buy'; check TP
Laxmi Dental share price rose 3.2 per cent in trade on Monday, logging an intraday high at ₹441.6 per share on BSE. At 9:27 AM, Laxmi Dental shares were trading higher by 2.2 per cent at ₹437.2 per share on the BSE. In comparison, the BSE Sensex was down 0.16 per cent at 82,369.42. The company's market capitalisation stood at ₹2,372.72 crore. The 52-week high of the stock was at ₹583.7 per share and the 52-week low of the stock was at ₹307.55 per share. Motilal Oswal initiates 'Buy' From the previous close at ₹427.8 per share, domestic brokerage Motilal Oswal sees a 26 per cent upside. The brokerage has initiated a 'Buy' and setting the target price at ₹540 per share. The brokerage cites supportive industry trends and the company's strong potential for sustained growth, assigning a 43x 12-month forward earnings multiple. Why is Motilal Oswal upbeat on Laxmi Dental? Over FY22–25, Laxmi Dental's revenue grew from ₹140 crore to ₹240 crore, while Earnings before interest, tax, depreciation and amortisation (Ebitda) margins expanded from 4 per cent to 17.5 per cent. Net profit for FY25 stood at ₹262 crore, recovering from a loss in FY22. Motilal Oswal projects a 24 per cent revenue compound annual growth rate (CAGR), 48 per cent Ebitda CAGR, and 62 per cent profit after tax (PAT) CAGR over FY25–27, driven by strong traction across its three core verticals—custom labs, clear aligners, and pediatric dental products. Track Stock Market LIVE Updates Segment-wise growth Lab business: The lab segment contributes 62 per cent of the company's total revenue. Motilal expects this vertical to grow at a 21 per cent CAGR through FY27, driven by rising adoption of digital dentistry, a shift towards premium metal-free crowns, and outsourcing by US-based dental labs to India. Clear aligners: Laxmi Dental is the only aligner company in India that is fully vertically integrated, having end-to-end capabilities from raw material to distribution. Further, the company's launch of clear aligners under the brand 'Illusion Aligners', was the first Indian brand to receive 510(k) clearance from the United States Food and Drugs Administration (US FDA) in CY21 to market clear aligners. This segment is forecasted to grow at a 33 per cent CAGR, reaching ₹140 crore in revenue by FY27. Pediatric dental products: Motilal Oswal projects this niche segment to grow a 31 per cent CAGR, reaching ₹44.9 crore by FY27. As Laxmi Dental is India's only manufacturer of US FDA-cleared Silver Diamine Fluoride (SDF) and developer of the patented Bioflx zirconia crowns, the company is expected to benefit from the segment growth. Laxmi Dental listing The stock listed on bourses on January 20, 2025. On the National Stock Exchange (NSE), Laxmi Dental IPO listing price was ₹542 per share, reflecting a listing gain of 26.6 per cent or ₹114, as against the issue price of ₹428. Similarly, on the BSE, Laxmi Dental shares listed at ₹528 apiece, commanding a premium of 23.3 per cent or ₹100, as compared to its initial public offering (IPO) issue price.
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Business Standard
07-07-2025
- Business
- Business Standard
Petronet LNG shares rise 3%; Motilal Oswal upgrades to 'Buy'; check target
Petronet LNG shares rose 3.3 per cent in trade, hitting an intraday high of ₹307.85 per share. At 10:46 AM, the stock was trading 2.84 per cent higher at ₹306.45 on the BSE, even as the BSE Sensex was down 0.04 per cent at 83,396.81. The company's market capitalisation stood at approximately ₹46,050 crore. Its 52-week high is ₹384.9, while the 52-week low is ₹269.9 per share. Domestic brokerage Motilal Oswal has upgraded its rating on Petronet LNG from 'Neutral' to 'Buy', with a target price of ₹410 per share, based on a Discounted Cash Flow (DCF) model using an 11.2 per cent Weighted Average Cost of Capital (WACC). The brokerage believes the stock is currently reflecting an overly pessimistic scenario—a 20 per cent tariff cut at both the Dahej and Kochi terminals in FY28, no tariff hikes thereafter, and zero growth in terminal usage. According to Motilal, this assumption appears unrealistic. Instead, it considers a more realistic scenario to be a 10 per cent tariff cut in FY28, followed by a 4 per cent annual increase, which has been factored into its model. Track Stock Market LIVE Updates Petronet LNG is currently trading at 9.7x FY27 price-to-earnings and offers a 4 per cent dividend yield, levels the brokerage describes as absolute rock bottom. The Dahej terminal, a key asset for the company, has continued to operate at near full utilisation, aided by connectivity through five major pipelines, which provide access to key demand centres. Its scale advantage—at 17.5 million tonnes per annum (mmtpa) versus an average terminal size of 5 mmtpa—enables more competitive gas pricing and superior arbitrage opportunities. A sharp tariff cut at Dahej, however, could exert pressure across the industry, as rival terminals were constructed at nearly twice the cost (₹5 billion per mmtpa for Dahej vs ₹9–11 billion for peers). This cost edge, combined with the upcoming capacity expansion, enhances Dahej's long-term attractiveness. Addressing concerns about market share loss, Motilal notes that competing terminals have yet to pose a serious threat. Utilisation at rival facilities remains low—between 14 and 43 per cent—despite being operational for several years. The brokerage also pointed out that the much-anticipated terminal from Swan Energy has not materialised, and even with breakwater construction, GAIL's Dabhol terminal is unlikely to sustain utilisation above 50 per cent annually.
