Industrials Q4 Results Preview - Strong Ordering Excluding Roads: HDFC Securities

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Union budget FY25 earmarked a 7% YoY increase in capex, roads, railways, defence, and water to be key beneficiaries: Union Government focus on infra asset creation has been the key theme driving capex. Capital goods companies are benefitting from the pick-up in government and private capex and India’s big push to manufacturing. The real estate upcycle is aiding private capex; hospitality recovery augurs well. Geopolitical compulsions and resultant re-alignment in the supply chain, sustainability initiatives, etc., are driving incremental investments towards India alongside the government rolling out conducive policies like Production linked incentive/concessional tax rate to promote investments. We are seeing major MNC companies undertake new capacity build-outs in traditional segments as well as new opportunities like clean energy/automation. This expansion is being envisaged for catering to export and local demand. Given 75%+ capacity utilisation, a stable pricing environment augurs well for profitability..We expect engineering, procurement and construction/infra universe revenue/Ebitda/profit after tax to grow 15.0/18.2/24.8% YoY to Rs 225.9/33.4/14.1 billion, with Ebitda margin at 14.8% (40 bps YoY). In capital goods, revenue/Ebitda/PAT are expected to grow by 15.1/28.5/31% YoY to Rs 928.7/105.7/62.7 billion, with Ebitda margin at 11.8% (118 bps YoY). The valuation of core EPC/infra universe (excluding IRB Infra) is at ~12.5/10 time FY25/26E core EPS and it is still far from the long-term mean of 15 times, offering a favourable risk-reward. We roll over our earnings estimate to Mar-26E..Click on the attachment to read the full report:.Real Estate Q4 Results Preview - Strong Demand Aiding Presales Momentum: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Industrials Q4 Results Preview - Strong Ordering Excluding Roads: HDFC Securities

NHAI’s FY24 awarding activity is muted; expect pick-up from H2 FY25

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Industrials Q4 Results Preview - Strong Ordering Excluding Roads: HDFC Securities

NHAI’s FY24 awarding activity is muted; expect pick-up from H2 FY25

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