ABB India, Nykaa, Gujarat Gas, GSPL, Galaxy Surfactants, Ashoka Buildcon & More Q3 Review: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.ABB India - Positives priced in ABB India Ltd.'s reported strong revenue/Ebitda/profit after tax at Rs 24.3/3.6/3.0 billion, beating our estimates by 6/57/68%. For CY22, order inflow crossed Rs 100 billion for the first time since the divestment of its power grid, turbocharger and solar business in CY18. ABB is seeing order inflows sustain at this level annually, going forward. During the quarter, the Ebitda margin expanded to 15% (+620/+506bps YoY/QoQ, versus 10.1% estimate). This expansion was on the back of better gross margin in the mix, better capacity utilisation and an improving supply chain..Nykaa - Misses expectations; thesis on track Fsn E-commerce Ventures Ltd.’s top line grew 33% YoY to Rs 14.6 billion (our estimate: 15 billion) on account of fewer festive days in Q3 FY23. Adjusting for seasonality (Q2 plus Q3 FY23 performance), beauty and personal care growth seems to have come off (32% YoY)..Gujarat Gas - Volumes remain weak Our optimism on Gujarat Gas Ltd. is premised on volume growth at 9% CAGR over FY23-25E, and a high spot liquefied natural gas price environment. Q3 FY23 Ebitda/profit after tax at Rs 5.8/3.7 billion came in above our estimate, owing to a higher-than-expected gross spread. Volume declined sharply by 36% YoY, 4% QoQ to 7.29 metric million standard cubic metre per day, mainly impacted by a decline in industrial piped natual gas volumes. However, lower offtake of expensive spot LNG gas by industrial/commercial customers supported margins..Gujarat State Petronet - Volume declines further Our optimism on Gujarat State Petronet Ltd. is premised on muted transmission volume over FY22-25E due to a high spot LNG price environment, given the geopolitical issues, low global inventories, and pick-up in demand post reopening of economies and limited upside triggers in the near term. Hence, we believe that, at present, the stock is fairly valued with an return on equity of 13.5% in FY24E and a combined free cash flow of Rs 24 billion over FY23-25E..Galaxy Surfactants - Margin improves on lower input costs Our recommendation on Galaxy Surfactants Ltd. is premised on the stickiness of business, as over 50% of the revenue mix comes from muti national companies and stable Ebitda margin, since fluctuations in raw material costs are easily passed on to customers. Q3 Ebitda/adjusted profit after tax were 17/25% higher than our estimates, owing to lower-than-expected raw material cost, lower-than-expected other expenses, and lower-than-expected tax outgo, offset by higher-than-expected depreciation..Ashoka Buildcon - Moving towards being asset light Ashoka Buildcon Ltd. reported revenue/Ebitda/adjusted profit after tax of Rs 15.6/1.2/0.7 billion, beating/(missing) our estimates by 11.3/(8.9)/(11.5)%. With approvals pending from only a few stakeholders, all the asset monetisation deals are expected to be completed by H1 FY24..Click on the attachment to read the full report:.Nykaa Q3 Results Review - Healthy In Tough Backdrop: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ABB India, Nykaa, Gujarat Gas, GSPL, Galaxy Surfactants, Ashoka Buildcon & More Q3 Review: HDFC Securities

ABB India Ltd.'s reported strong revenue/Ebitda/PAT at Rs 24.3/3.6/3.0 billion, beating our estimates by 6/57/68%.

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