3QFY25
India Strategy
BSE Sensex: 77,506
Refer to our Quarter Preview
February 2025
Nifty-50: 23,482
Interim review: In line with modest expectations
Downgrades outpace Upgrades by 4:1; Nifty EPS cut 1.2%/1.5% for FY26/27E
In this report, we present our interim review of the 3QFY25 earnings season.
st
As of 31 Jan’25, 183/36 companies within the MOFSL Universe/Nifty
announced their 3QFY25 results.
These companies constituted: i) 77% and 78%
of the estimated PAT for the MOFSL and Nifty Universe, respectively; ii) 51% of
India's market capitalization; and iii) 77% weightage in the Nifty.
The earnings growth of the aforementioned 183 MOFSL Universe companies grew
3% YoY (est. +4% YoY) in 3QFY25. The aggregate performance was hit by drag from
global commodities. Excluding Metals and O&G, the MOFSL Universe and Nifty
clocked 8% and 4% earnings growth vs. expectations of +8% and +5%, respectively.
The modest earnings growth was driven once again by BFSI, with positive
contributions from Technology, Real Estate, Healthcare, and Capital Goods.
Conversely, earnings growth was weighed down by global cyclicals, such as O&G
(OMC’s profit declined 18% YoY), which dipped 10% YoY, along with Metals (-9%
YoY), Cement (-47% YoY), Automobiles (-9%), and Consumer (-1%). Excluding
BFSI, profits for the MOFSL Universe have declined 1% YoY (vs. est. of +2% YoY).
Earnings of the 36 Nifty companies that have declared results so far have inched
up 1% YoY (vs. est. of +2% YoY), fueled by ICICI Bank, Reliance Industries, BPCL,
Infosys, and TCS. Conversely, Coal India, ONGC, Tata Motors, JSW Steel, IndusInd
Bank, and Ultratech Cement contributed adversely to Nifty earnings. Seven
companies within the Nifty reported lower-than-expected profits, while seven
recorded a beat and 22 registered in-line results.
Downgrades 4x of upgrades:
Until now, 19/78 companies within the MOFSL
Coverage Universe have reported an upgrade/downgrade of more than 3% each,
leading to an adverse upgrade-to-downgrade ratio for FY26E. Further, the EBITDA
margin of the MOFSL Universe (ex-Financials) expanded marginally by 20bp YoY to
16.2%, primarily aided by the Healthcare, Telecom, and Real Estate sectors but
dragged down by the Cement, Automobiles, Consumer, and Retail sectors.
Nifty EPS saw a downgrade of 1.2%/1.5% for FY26E/FY27E:
The Nifty EPS
estimate for FY26 was cut by 1.2% to INR1,205, largely owing to HDFC Bank, JSW
Steel, Axis Bank, and Tata Steel. FY27E EPS was also reduced by 1.5% to
INR1,378 (from INR1,398) due to downgrades in HDFC Bank, Tata Steel, Reliance
Industries, Tata Motors, and Axis Bank.
Summary of the 3QFY25 performance thus far: 1) Banks:
Earnings growth for
private banks was mixed, with SMIDs witnessing a sharp earnings decline amid
accelerated provisions, while large banks were on a much more stable trend. CD
ratio remained elevated for the system, as most of the banks reported weak
deposit growth amid tight liquidity. Asset quality trends were mixed. PSU Banks,
conversely, reported controlled slippages, while credit cost guidance remains
largely benign.
2) NBFCs – Lending:
NBFCs reported a minor deterioration in
asset quality in the historically seasonally strong 3Q of the fiscal year. Credit costs
for NBFC-MFIs remained high because of a sustained deterioration in asset
quality. Disbursements and loan growth for mortgage financiers were adversely
affected, resulting in delays in property registrations and increased operational
challenges.
3) Technology:
The IT Services companies presented a mixed picture
in a seasonally weak quarter, with a median revenue growth of 1.8% QoQ CC in
Gautam Duggad – Research Analyst
(Gautam.Duggad@MotilalOswal.com)
Research Analyst: Deven Mistry
(Deven@MotilalOswal.com)
/
Aanshul Agarawal
(Aanshul.Agarawal@Motilaloswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
3QFY25. The Tier-1 players posted a median revenue growth of 1.3% QoQ CC,
while Tier-2 companies recorded a strong growth of 3.2% QoQ CC.
4)
Automobiles:
The results were a mixed bag, with revenue for our coverage
universe aligning with expectations, while EBITDA fell short of estimates.
Management commentary on FY26 demand was uncertain, with signs of
moderation across segments, while the commentary appeared more optimistic
about rural demand outpacing urban demand.
5) Consumer:
Staples companies
had a muted quarter due to sluggish urban demand, weak winter portfolio
uptake, high food inflation, and steep inflation in palm oil. Companies are
implementing price hikes to offset the inflation. QSRs improved slightly, while
Jewelry growth was strong.
6) Healthcare:
The sector has reported double-digit
growth in 3QFY25 for the DF segment and a moderate decline in the US business.
On an overall basis, we expect earnings growth momentum to be sustained in
the coming quarters, fueled by the ongoing niche launches and improved
operating leverage.
7) Oil & Gas:
The O&G Coverage Universe has so far
reported mixed results.
OMCs:
HPCL’s EBITDA beat was primarily led by a
higher-than-estimated GRM; IOCL missed our estimate due to lower-than-
anticipated reported GRM and high inventory losses. BPCL’s performance was in
line with our expectations, as weaker-than-expected refining performance was
offset by robust marketing margins. RIL’s consolidated performance was above
our estimate, driven by a recovery in Retail, and O2C.
Refer to page 7 for the
detailed 3QFY25 sectoral trends.
Key result highlights: 3QFY25
Refer to our Union Budget
2025-26
As of 31
st
Jan’25,
36 Nifty stocks
reported a sales/EBITDA/PBT/PAT growth of
5%/7%/5%/1% YoY (vs. est. of +3%/5%/4%/2%). Of these, 7 companies
surpassed/missed our PAT estimates each. On the EBITDA front, 8/3 companies
exceeded/missed our estimates during the quarter thus far.
For the
183 companies within our MOFSL Universe,
sales/EBITDA/PBT/PAT were
+5%/8%/7%/3% YoY (vs. est. of +6%/6%/5%/4%). Excluding Metals and O&G, the
MOFSL Universe companies recorded a sales/EBITDA/PBT/PAT growth of
10%/10%/11%/8% YoY (vs. est. of +10%/10%/10%/8%) in 3QFY25 so far.
View:
The 3QFY25 earnings are in line with modest expectations, but forward
earnings revisions are the weakest in recent times, with downgrades far
outpacing upgrades, especially in our non-Nifty 50 universe. The Nifty-50 is likely
to clock a modest ~5% EPS growth in FY25E (following a 20%+ CAGR during
FY20-24). Weakness in consumption coupled with a drag from commodities has
put pressure on earnings even as BFSI, Healthcare, Capital Goods, and Tech have
posted a healthy print. With the government in its
budget
shifting focus from
capex to consumption, we expect a realignment in portfolios and further
moderation in the multiples of Industrials/Capital Goods/Manufacturing sectors.
The underperformance of Consumer Staples may also be behind, in our view, as
the INR1t tax relief for middle-class taxpayers works its way through the wallets
and reflects in consumer spending in the quarters to come. We expect multiples
of Consumption companies, especially Staples, to rebound after a steady de-
rating since FY20. The Nifty is trading at a 12-month forward P/E of 20x, below
its long-period average (LPA) of 20.6x. Overall, with broader markets trading at
significant premiums vs. their own LPA and Nifty, we remain biased toward
large-caps with a 76% allocation in our model portfolio. We are OW on
Consumption, BFSI, IT, Industrials, Healthcare, and Real Estate, while we are UW
on Oil & Gas, Cement, Automobiles, and Metals.
February 2025
2
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Performance in line: BFSI drives earnings; global commodities drag
Aggregate performance of the MOFSL Universe:
sales/EBITDA/PBT/PAT were
+5%/8%/7%/3% YoY (vs. est. of +6%/6%/5%/4%). Excluding Metals and O&G, the
MOFSL Universe companies recorded a sales/EBITDA/PBT/PAT growth of
10%/10%/11%/8% YoY (vs. est. of +10%/10%/10%/8%) in 3QFY25 so far.
Nifty-50 companies that surpassed/missed our estimates:
Wipro, Ultratech
Cement, Cipla, Dr Reddy’s Labs, Bharat Electronics, Tata Steel, and SBI Life
Insurance exceeded our profit estimates. Conversely, Tata Motors, ONGC, L&T,
HUL, Nestle, and Tata Consumer missed our profit estimates for 3QFY25.
Top FY26E upgrades:
Tata Motors (4.1%), Kotak Mahindra Bank (3.6%), Tech
Mahindra (1.7%), and HCL Technologies (1.2%).
Top FY26E downgrades:
JSW Steel (-9.5%), Tata Consumer (-6.5%), Tata Steel (-
5.9%), Dr. Reddy’s Labs (-5%), and Axis Bank (-4.6%).
EBIDTA
PBT
PAT
Exhibit 1:
Sector wise 3QFY25 performance of the MOFSL Universe companies (INR b)
Sector
(no of companies)
Var.
Chg. % Chg. %
Dec-24
over
QoQ YoY
Exp. %
2,072 6.4
5.6
-1.1
Automobiles (11)
725
6.4 19.0 -1.3
Capital Goods (4)
422 11.0 -0.2
0.3
Cement (7)
61
2.3 17.6 -0.1
Chemicals (5)
473
2.6
6.3
-0.4
Consumer (12)
175
4.3 15.9
1.4
Cons. Durables (5)
146 -3.0 90.3
1.3
EMS (5)
2,370 3.6 10.4 -1.6
Financials (50)
922
1.3
9.0
-0.3
Banks-Private (12)
473
1.2
3.2
-1.4
Banks-PSU (5)
633
9.5 13.8 -4.4
Insurance (5)
3.8 16.7
0.3
NBFC - Lending (15) 280
63
-0.3 34.0
0.5
NBFC-Non Len. (13)
464
1.7 10.4
1.6
Healthcare (11)
20
27.7 2.9
20.5
Infrastructure (1)
156
8.0 12.7
2.3
Logistics (6)
20
-1.1 -3.3 -4.5
Media (1)
1,903 4.9
1.2
-0.4
Metals (6)
7,658 6.6
0.2
-1.1
Oil & Gas (10)
3,483 1.9
2.8
3.7
Ex OMCs (7)
114 10.1 19.4 -9.5
Real Estate (8)
294 13.2 19.3 -0.2
Retail (9)
125
4.8 13.6
2.6
Staffing (4)
1,967 1.2
5.9
0.1
Technology (12)
133
1.6
3.8
-2.6
Telecom (2)
439
0.5
4.3
0.4
Utilities (3)
605 12.5 16.7
0.2
Others (11)
5.0
-0.8
MOFSL Univ. (183) 20,343 5.4
17,973 5.6
4.4
-0.7
Ex Financials
10,782 4.6
9.5
-0.6
Ex Metals & Oil
16,167 4.1
7.0
0.3
Ex OMCs
12,265 4.4
4.7
1.3
Nifty (36)
8,771 3.5
6.6
0.6
Sensex (23)
Sales
Var.
Chg. % Chg. %
Dec-24
over
QoQ YoY
Exp. %
255
3.8
-6
-6.7
82
2.7 17.6 -2.9
60
31.5 -30
-9.0
12
11.3 24.8
8.0
99
0.6
1
-3.0
17
14.9 24.9
2.4
8
4.6
89
1.9
1,316 -0.7 11.8
0.9
694
0.7
10
0.1
344 -6.7
9.0
2.6
31
19.0
11
2.7
213
3.3 16.3
0.6
35
-3.3
48
0.1
121
1.2 16.1
4.7
10
28.4
13
21.0
62
7.2 13.2
5.1
3
-0.8
52
6.3
409 19.4 3.0
9.3
919 23.8
3
1.3
687
9.5
4.8
1.9
41
20.0
29
2.1
29
20.6 6.3
-5.4
4
4.2
8
-2.2
448
2.9
6.9
1.6
81
37.3
72
27.1
130 13.1 16.5 -3.6
123 62.2
36
-6.4
4,228 9.9
7.7
1.2
2,913 15.5 6.0
1.3
2,900 5.0 10.2
0.1
3,996 7.1
8.5
1.3
2,815 7.7
6.9
1.7
2,154 6.2
8.1
1.5
Var.
Var.
Chg. % Chg. %
Chg. % Chg. %
Dec-24
over Dec-24
over
QoQ YoY
QoQ YoY
Exp. %
Exp. %
195 10.7
3.1
-1.8
143
12.4 -8.7
-8.2
73
2
20.9
-3.5
49
4.8
23.4 -3.0
29
45.9 -53.9 -23.5
23
59.5 -47.0 -10.0
8
13
25.7 11.8
6
16.4 29.3 12.6
91
0.8
-0.8
-5.1
68
-0.2
-0.9
-5.8
15
5
18.0
-4.8
11
5.3
23.4 -5.5
5
-27.6 119.2 -11.5
3
-1.2 94.9 -17.5
1,047 -1
11.0
2.4
791
-0.5 10.2
3.5
553 -2.0
4.8
-1.8
420
-2.9
1.5
-0.8
285
-2
23.3 12.0
209
-0.4 29.3 14.4
26
10.3 36.5
9.4
22
10.4 36.4
9.2
148
9
7.0
1.8
112
10.0
7.2
2.1
36 -11.3 30.1
-0.5
28
-8.3 27.9 -0.6
98
-3
16.8
5.5
75
0.2
16.1
3.3
3
20.8
9.7
12.2
2
122.2 18.4 10.2
42
6
6.0
-0.9
36
10.7 15.7
3.6
3
1.2
95.8 10.7
2
23.1 129.5 29.9
274
31
1.8
15.7
172
26.4 -9.2
8.6
599 25.9 -2.4
-1.4
398
16.4 -10.2 -6.8
470
5
3.7
3.2
299
-6.9
-7.4
-4.3
32
23.1 32.8
0.7
32
35.0 50.6 12.7
19
37
1.9
-8.7
14
29.0
1.5 -10.3
3
22.2 36.8
-2.7
3
23.6 50.4 -3.1
419
3
9.0
0.5
309
2.9
8.8
-0.1
56
74.5 130.8 54.8
20
29.5 10.8 10.7
69
-4
8.0
-2.2
49
-5.3
4.6
-9.9
59 526.7 70.9 -14.7
53 1,056.4 33.7 -17.5
3,140 10.7
7.1
1.5 2,259 9.3
2.8
-0.8
2,092 17.4
5.3
1.1 1,468 15.4 -0.8
-3.0
2,267 5.4
10.7
0.8 1,690 6.3
7.9
-0.2
3,010 7.3
8.7
2.4 2,161 5.6
4.0
-0.1
2,140 5.5
5.3
1.3 1,526 3.7
1.3
-0.6
1,666 6.3
9.1
1.5 1,176 5.4
5.0
-0.6
Note: LP: Loss to Profit; PL: Profit to Loss
February 2025
3
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Aggregate performance of the MOFSL Universe companies that have announced results so far in 3QFY25
Exhibit 2:
Sectoral PAT growth for 3QFY25 (YoY %)
130
95
Of the 24 major
sectors under
MOFSL coverage, 19
have experienced a
rise in profits YoY
51 50 36 29 29 28 23 23 18
16 16 11 9
7
5
3
2
1
-1
-9 -9 -10 -47
Exhibit 3: Sales grew in line at 5% YoY (vs. est. of +6% YoY)
54
33 32
16
27
45
32
19
13
4 3 6 7 6 4
Exhibit 4: PAT up 3% YoY (vs. est. of +4% YoY)
107 106
54 53
26 18
13
-5
0
14
5
4
22
31
34
31
10
-1 -7
-1 -3
-30
-7
0
-26
-36
3
Exhibit 5: EBITDA grew 8% YoY (vs. est. of +6% YoY)
44
22
48
30
15 14
8
7 10
36
17
11
1
-4
Exhibit 6: EBITDA margin (ex-Financials) expanded 20bp YoY
to 16.2%
11
16
21
1
8
-8 -12
Exhibit 7: MOFSL Universe – sector wise margin performance
Dec-23
Sep-24
Dec-24
Source: Company, MOFSL
February 2025
4
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Aggregate
performance of 36 Nifty companies in 3QFY25
The Nifty stocks reported a sales/EBITDA/PBT/PAT growth of 5%/7%/5%/1% YoY
(vs. est. of +3%/5%/4%/2%). Of these, 7 companies surpassed/missed our PAT
estimates each. On the EBITDA front, 8/3 companies exceeded/missed our
estimates during the quarter thus far.
Exhibit 9: Nifty PAT up 1% YoY (vs. est. of +2% YoY)
93
107
Exhibit 8: Nifty sales up 5% YoY (vs. est. of +3% YoY)
50
16
0
-4
-28
-6
-1
30 28
24
38
31
19
13
5 5 6 7 7 3
5
7
9
19
37
25 17 21
15
4 8
32 33
21
11 4
0
1
-29-36
Exhibit 10: Nifty EBITDA up 7% YoY (vs. est. of +5% YoY)
46
32
7
15
24
21
27
12 12
5
Exhibit 11: Nifty EBITDA margin (ex-Financials) up 20bp YoY
to 18.5%
19 17 17
8
4
-4
12 12
0
7
-14
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 12: YoY change (%) in the PAT of Nifty companies – only nine companies posted a YoY decline in PAT
71 69
47
37 37
24 21 18
15 14 14 14 14 14 13 11 10
7
6
6
6
4
3
2
1
1
-4 -10
-17 -17 -17 -18 -23
-39
-66
February 2025
5
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Aggregate performance of the Nifty companies that have declared their 3QFY25 results thus far
Exhibit 13: 3QFY25 performance of 36 Nifty companies that have announced their results (INR b)
Var.
Dec- Chg. % Chg. %
Company
Sector
over
24 YoY QoQ
Exp. %
Bajaj Auto
Automobiles
128 5.7 -2.4 -1.7
Maruti Suzuki
Automobiles
385 15.6 3.5
0.0
Tata Motors
Automobiles 1,136 2.7 12.0 -1.2
Axis Bank
Banks-PVT
136 8.6
0.9 -0.4
HDFC Bank
Banks-PVT
307 7.7
1.8
1.0
ICICI Bank
Banks-PVT
204 9.1
1.6 -1.6
IndusInd Bank Banks-PVT
52 -1.3 -2.2 -1.0
Kotak Mah. Bk Banks-PVT
72
9.8
2.5
0.9
HDFC Life Ins.
Insurance
168 10.1 1.2 -8.3
SBI Life Ins.
Insurance
250 11.3 22.5 -3.5
Bajaj Finance
NBFC-Lending 94 22.6 6.2
0.6
Bajaj Finserv
NBFC - Lending 258 6.2 -6.8 -11.5
Shriram Finance NBFC - Lending 56 13.8 2.3 -1.2
Bharat Elect.
Cap. Goods
58 39.1 25.6 15.9
L&T
Cap. Goods
647 17.3 5.1 -2.5
Ultratech Cem. Cement
172 2.7 10.0 0.9
Hind. Unilever Consumer
158 1.6 -0.7 -1.5
Nestle
Consumer
48
3.9 -6.4 -1.4
Tata Consumer Consumer
44 16.8 5.4
0.7
Cipla
Healthcare
71
7.1
0.3
1.5
Dr Reddy’ s Labs Healthcare
82 14.1 2.7
7.9
Sun Pharma
Healthcare
131 7.4 -1.6 -2.4
Adani Ports
Logistics
80 15.1 12.7 6.2
Coal India
Metals
358 -1.0 16.6 -2.5
JSW Steel
Metals
414 -1.3 4.3 -1.8
Tata Steel
Metals
536 -3.0 -0.5 2.6
BPCL
Oil & Gas
1,131 -2.0 10.1 11.6
ONGC
Oil & Gas
337 -3.1 -0.5 5.1
Reliance Inds.
Oil & Gas
2,400 6.6
3.6
4.0
HCL Tech.
Technology
299 5.1
3.6 -0.2
Infosys
Technology
418 7.6
1.9
0.8
TCS
Technology
640 5.6 -0.4 -0.8
Tech Mahindra Technology
133 1.4 -0.2 0.7
Wipro
Technology
223 0.5
0.1
0.7
NTPC
Utilities
414 4.8
2.5
4.1
Adani Enterp.
Others
228 -8.8 1.1
-
Nifty Universe
12,265 4.7
4.4 1.3
Ex Financials
10,669 4.1
4.7 2.1
Ex Metals & Oil
7,089 7.0
4.0 -0.8
Ex OMCs
11,134 5.4
3.9 0.4
Note: LP: Loss to Profit; PL: Profit to Loss
Sales
Var.
Dec- Chg. % Chg. %
over
24 YoY QoQ
Exp. %
26
6.2 -2.7 -0.1
45 14.4 1.2
2.0
130 -15.0 11.0 -11.6
105 15.2 -1.7 2.3
250 5.7
1.2
1.0
169 14.7 1.0
1.0
36 -10.9 0.0 -0.1
52 13.5 1.6 -1.0
9
8.6 -0.9 -3.8
19 11.3 29.0 4.5
78 27.1 6.8
2.0
78 17.6 -0.3 -3.8
41 10.7 2.5 -0.9
17 57.5 19.1 33.2
63
8.6 -1.7 -9.7
29 -11.3 43.0 3.6
37
0.8 -2.6 -3.7
11 -0.8 -5.8 -4.2
6
-1.3 -9.8 2.4
20 13.8 5.5 11.9
22
7.1 -1.4 6.3
36 14.2 -5.5 -0.7
48 14.7 9.9
9.3
104 -12.8 45.4 0.2
56 -22.3 2.6 10.1
72 24.6 29.6 58.1
76 20.7 68.0 -6.1
190 10.5 4.0
1.4
438 7.7 12.1 4.0
69
2.6
7.8
1.4
100 9.8
2.9
3.0
170 3.4
1.1 -0.8
18 33.5 3.4
5.5
47 12.5 4.0
6.5
120 20.3 23.6 2.1
31 -4.9 -18.4
-
2,815 6.9
7.7
1.7
1,977 5.1 10.5 2.2
1,880 7.8
3.6
0.0
2,739 6.6
6.6
1.9
EBITDA
Var.
Dec- Chg. %Chg. %
over
24
YoY QoQ
Exp. %
28
4.7 -4.2 -1.9
46 13.5 8.0
1.9
77
2.1 36.1 -2.9
84
3.3 -1.5 -1.9
218 12.4 -0.7 -1.0
157 14.5 1.1
3.2
19 -39.6 4.3 -3.3
44 10.0 -1.2 -2.1
4
21.3 1.7
3.3
6
73.7 4.5 11.0
58 17.7 6.7
4.2
58
7.0 -2.6 -10.5
28 13.1 0.3 -1.7
18 49.6 20.9 28.3
53 11.8 -4.0 -11.1
18 -22.0 80.0 6.5
35
-0.1 -2.5 -4.5
10
-6.9 -8.2 -8.9
4
-20.5 -3.8 -17.4
18 14.5 3.4 11.1
18
-3.5 -9.4 12.5
36 22.1 3.6
3.6
32
4.6
8.7
0.3
117 -11.4 46.2 6.7
13 -61.6 6.9 12.1
30 80.1 93.4 483.4
62 34.8 93.4 -3.7
110 -12.8 -26.8 -13.0
286 10.9 14.4 4.5
61
4.4
7.8
0.8
97 12.2 4.5
3.2
167 5.0
4.0 -2.4
13 46.3 -24.6 -8.6
45 25.4 4.1 13.9
66 11.1 9.5
6.6
6
-75.8 -76.2
-
2,140 5.3
5.5
1.3
1,465 3.6
8.1
2.3
1,522 7.2
2.3
0.1
2,078 4.7
4.1
1.5
PBT
PAT
Var.
Dec- Chg. % Chg. %
over
24
YoY QoQ
Exp. %
21
3.3 -4.8 -2.6
35 12.6 -4.0 1.3
55 -23.0 63.6 -16.5
63
3.8 -8.9 -1.3
167 2.2 -0.5 0.5
118 14.8 0.4
3.2
14 -39.1 5.3 -2.3
33 10.0 -1.2 -2.2
4
13.7 -4.2 -4.3
6
71.2 4.0
9.7
43 18.3 7.3
4.8
22
3.4
6.9 -15.2
21 14.4 0.5 -1.2
13 47.3 20.6 27.7
34 14.0 -1.1 -11.5
15 -17.3 79.2 13.8
26
1.0 -1.8 -5.5
7
-10.2 -8.9 -11.3
3
-18.4 -26.3 -15.6
14 14.0 4.7 15.0
13
-4.3 -3.0 10.7
30 21.3 2.4
1.3
27 13.6 8.6
1.6
85 -17.0 35.2 1.8
8
-65.8 20.9 -4.9
7
68.8 64.1 281.5
46 36.9 93.9 -3.2
82 -16.7 -31.2 -12.9
185 7.4 11.9 4.6
46
5.5
8.4
1.4
68 11.5 4.6 -0.5
124 5.7
4.1 -2.2
10 36.8 -21.4 -4.4
34 24.5 4.5 13.5
46
6.0
9.9 -3.5
1
-96.7 -96.5
-
1,526 1.3
3.7 -0.6
1,035 -0.9 5.8 -0.9
1,111 3.7
2.2 -0.9
1,479 0.4
2.2 -0.5
Source: Company, MOFSL
February 2025
6
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Exhibit 14:
Nifty Universe – only three upgrades of more than 3% and eleven downgrades of over 3% for FY26E
Company Name
HDFC Life Insur.
Tata Motors
Kotak Mahindra Bank
Tech Mahindra
HCL Technologies
BPCL
Wipro
Sun Pharma
Bajaj Finance
Coal India
Reliance Inds.
TCS
Shriram Finance
ICICI Bank
Maruti Suzuki
ONGC
Larsen & Toubro
Adani Ports
NTPC
IndusInd Bank
Infosys
Cipla
Bajaj Auto
Hind. Unilever
HDFC Bank
Nestle
Ultratech Cement
Bharat Electronics
Axis Bank
Dr Reddy’ s Labs
SBI Life Insurance
Tata Steel
Tata Consumer
JSW Steel
Sector
Insurance
Automobiles
Banks-Private
Technology
Technology
Oil & Gas
Technology
Healthcare
NBFC - Lending
Metals
Oil & Gas
Technology
NBFC - Lending
Banks-Private
Automobiles
Oil & Gas
Capital Goods
Logistics
Utilities
Banks-Private
Technology
Healthcare
Automobiles
Consumer
Banks-Private
Consumer
Cement
Capital Goods
Banks-Private
Healthcare
Insurance
Metals
Consumer
Metals
EPS PREVIEW (INR)
FY25E FY26E FY27E
8.4
9.3
10.3
65.6
59.5
64.7
93.9 106.0 126.1
47.8
62.1
69.6
63.3
71.9
79.7
28.2
26.1
26.8
11.5
12.3
13.0
49.3
59.3
67.4
264.5 342.9 440.0
56.7
67.4
70.5
49.5
61.2
69.4
139.0 153.0 167.3
45.0
53.0
64.1
65.6
72.4
82.4
472.2 517.7 579.3
38.7
46.5
47.4
111.1 137.2 160.3
49.1
59.2
70.8
20.6
25.8
28.0
84.5 112.3 142.1
63.5
71.5
80.1
57.1
62.6
66.0
292.3 337.1 388.5
44.8
51.0
56.2
87.9
98.8 112.5
33.8
38.3
43.1
214.9 311.8 390.8
6.7
8.2
9.9
85.4
94.2 108.5
64.3
78.3
68.8
25.1
25.7
28.8
3.8
11.9
17.8
14.8
19.0
20.9
19.8
68.2
85.7
EPS REVIEW (INR)
% Upgrade / Downgrade
FY25E FY26E FY27E FY25E FY26E FY27E
7.5
9.7
11.1
-10.4
4.7
8.6
65.6
61.9
60.4
0.0
4.1
-6.6
96.0 109.8 131.4
2.3
3.6
4.2
45.2
63.2
74.0
-5.5
1.7
6.3
63.8
72.7
80.7
0.7
1.2
1.3
26.9
26.3
26.6
-4.6
1.0
-0.7
12.0
12.3
13.0
5.0
0.4
0.3
49.2
59.5
66.6
-0.3
0.4
-1.2
270.9 343.7 435.6
2.4
0.2
-1.0
56.8
67.4
70.5
0.1
0.0
0.0
50.6
61.0
67.9
2.3
-0.3
-2.1
138.0 152.0 166.2
-0.7
-0.7
-0.7
44.2
52.6
63.6
-1.7
-0.7
-0.6
66.3
71.7
82.0
1.1
-0.9
-0.4
462.3 512.4 573.4
-2.1
-1.0
-1.0
37.5
46.0
47.1
-3.2
-1.1
-0.7
106.2 135.4 156.5
-4.4
-1.3
-2.4
47.7
58.5
70.0
-2.9
-1.3
-1.0
20.4
25.4
27.6
-1.1
-1.5
-1.3
82.1 110.4 136.5
-2.8
-1.7
-4.0
63.4
70.0
77.5
-0.3
-2.2
-3.3
61.7
61.2
68.2
8.0
-2.3
3.2
287.3 329.0 377.6
-1.7
-2.4
-2.8
44.1
49.3
54.1
-1.7
-3.4
-3.6
88.7
95.4 109.4
0.8
-3.5
-2.8
32.7
36.7
41.1
-3.2
-4.1
-4.7
222.0 298.6 380.3
3.3
-4.2
-2.7
6.7
7.8
9.4
0.6
-4.5
-4.5
84.6
89.8 104.2
-1.0
-4.6
-3.9
64.7
74.4
68.2
0.6
-5.0
-0.9
21.2
24.4
27.4
-15.6
-5.1
-4.7
3.4
11.2
16.0
-11.9
-5.9
-9.8
14.5
17.7
20.1
-1.6
-6.5
-3.8
17.0
61.7
82.8
-14.1
-9.5
-3.5
EPS Growth (%)
FY25E FY26E FY27E
3.2
29.2
14.6
11.7
-5.5
-2.5
4.8
14.3
19.7
10.0
39.8
17.1
10.2
14.0
11.0
-57.6
-2.0
1.1
18.0
2.3
6.0
18.7
21.0
11.9
15.9
26.9
26.7
-6.4
18.6
4.7
-1.6
20.5
11.4
9.3
10.1
9.3
15.5
19.0
21.0
13.6
8.2
14.4
10.0
10.9
11.9
-19.1
22.6
2.5
12.4
27.4
15.6
15.5
22.7
19.8
-4.9
24.5
8.5
-28.9
34.4
23.6
0.1
10.4
10.8
17.5
-0.8
11.4
4.0
14.5
14.8
0.8
11.9
9.8
10.7
7.6
14.7
-20.2
12.2
11.8
-9.2
34.5
27.3
21.7
16.5
21.0
4.8
6.2
16.1
2.0
15.0
-8.3
12.0
15.0
12.5
24.3 231.9 43.6
1.2
22.0
13.3
-53.8 263.2 34.1
Source: Company, MOFSL
Key sectoral trends – 3QFY25
Automobiles:
The 3QFY25 results were a mixed bag, with revenue for our
coverage universe aligning with expectations, while EBITDA fell short of
estimates. Revenue grew ~6% YoY, driven by higher PV volumes, a recovery in
the replacement market, and improved export growth, particularly for TVSL and
BJAUT. However, EBITDA declined due to weaker operating performance from
EXID, HYUNDAI, and TTMT. Commodity prices remained largely supportive
(excluding rubber) and are expected to remain stable in the coming quarters.
Management commentary on demand for FY26 was uncertain, with signs of
moderation across segments. However, unlike previous quarters, management
appeared more optimistic about rural demand outpacing urban. This was yet
another quarter of earnings downgrades, with estimates lowered for CEAT,
February 2025
7
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
SONACOMS, BIL, BOS, EXID, HYUNDAI, and CRAFTSMAN. MSIL was the only
company where we revised earnings estimates upward.
Banks:
Private Banks’ earnings growth was mixed, with SMIDs witnessing a sharp
earnings decline amid accelerated provisions, while large banks were on a much
more stable trend. Margins moderated slightly for both PSBs and Private Banks,
with a few banks reporting a double-digit NIM compression. Advances growth
has been steady for most of the banks, led by consistent growth in the Retail
segment (barring unsecured). The CD ratio was elevated for the system, as most
banks reported weak deposit growth amid tight liquidity. CASA ratio continued to
decline for most of the banks. Asset quality trends were mixed, with small banks
reporting asset quality deterioration, while large banks remained broadly intact.
PSU Banks, conversely, reported controlled slippages, while credit cost guidance
remains largely benign. We remain watchful on margins as the rate cycle turns
along with further stress in MFI, Cards, and PL segments for the private banks.
NBFCs – Lending:
Stress in unsecured retail notwithstanding, the weak macros
took a toll on the asset quality in the secured product segments as well.
NBFCs
reported a minor deterioration in asset quality in a seasonally strong 3Q. Credit
costs for NBFC-MFIs remained high due to a sustained deterioration in asset
quality. However, MFIs have witnessed some green shoots with collection
efficiency improving in Dec’24 and Jan’25. It should take another 2-3 quarters
before the situation stabilizes, with recovery anticipated in 1QFY26/2QFY26. CV
demand remained subdued due to weak government spending and capex. The
used vehicle segment also faced sluggish demand, primarily due to limited
supply. Further, there were minor blips in asset quality, particularly in M&HCV.
Disbursements and loan growth for mortgage financiers were hit by the
Karnataka E-Khata and Hyderabad (Project Hydra) issues, resulting in delays in
property registrations and increased operating challenges. Asset quality in
mortgages faced minor deterioration too. Margin performance for mortgage
financiers was a mixed bag, with PNBHF and CanFin maintaining stable margins,
while Homefirst saw a contraction due to higher borrowing costs and liquidity.
Due to a likely interest rate cut in 1HCY25, large HFCs could exhibit a transitory
NIM contraction owing to the pressure on yields from intense competition.
Diversified lenders reported decent performance, with lenders showing more
confidence to grow their personal loan book. Overall, it is turning out to be a
weak quarter with weaker loan growth and concerns around further asset
quality deterioration if the macro situation does not improve.
NBFC – Non-lending:
Capital markets –
Activity in the capital market space was
mixed across segments during 3QFY25. F&O/Cash volumes following a decent
trend in Oct’24/Nov’24 saw a decline of 35%/7% YoY in Dec’24. The slowdown
was also reflected in demat account additions, which are 9.9m in 3QFY25 vs.
13.1m in 2QFY25. The implementation of F&O regulations led to a 20% YoY/14%
QoQ decline in the number of orders of ANGELONE. Management guided an 18-
20% hit on income from these regulations. Revenues were also hit owing to the
implementation of true-to-label charges. All
AMCs
maintained an upward
growth trajectory outlook in the SIP flows (INR265b) despite weak market
sentiments. The industry’s yield trajectory has been improving (flat to marginal
decline) owing to: 1) increased TER in a few debt schemes, and 2) a decline in
February 2025
8
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
AUM due to MTM. Other income for all players was hit by adverse equity
market movements.
Insurance:
The
general insurance
industry’s growth rate is currently on a slow
trajectory, due to: 1) weak infrastructure investments, 2) slow credit growth, 3)
weak trends in motor sales growth, and 4) changes in accounting norms for the
long-term business. STARHEAL has done a repricing of 65% of the retail health
portfolio to offset the medical inflation impact. It has already adopted the 1/365
method for URR and hence expects no significant impact of the 1/n regulation.
ICICIGI’s retail health segment grew strongly due to new product launches, while
its group health segment posted weak growth due to lower credit growth and
rising competitive intensity. Motor segment loss ratios improved owing to
reserve release. ICICIGI/STARHEAL’s YoY NEP grew 17%/15%, whereas their PAT
rose 68%/dipped 26% YoY. The private
life insurance
players reported decent
growth in premiums. The impact of surrender charges on the margins of private
life insurers is minimal as guided by various management teams. However, the
shift in product mix towards ULIPs led to a contraction in the VNB margins.
HDFCLIFE/SBILIFE/ IPRU reported APE growth of 12%/13%/28% YoY. VNB
margins for HDFCLIFE/ SBILIFE/ IPRU contracted 140bp/46bp/170bp YoY.
Capital Goods:
3QFY25 has witnessed a turnaround on the domestic order
inflow front, particularly for EPC companies, as spending has started seeing an
uptick with the finalization of large orders on the defense, transmission, and
thermal side. International ordering too remains healthy, especially from GCC
countries. Execution has been strong as companies are sitting on healthy order
books. L&T is witnessing an improvement in the domestic macroeconomic
situation, resulting in an upward revision in its FY25 order inflow and revenue
guidance. The margin trajectory has been stable, with input prices at benign
levels. While order inflows for BEL were down YoY, 4Q is expected to see a
spike, as major orders were finalized.
Cement:
So far, seven cement companies within our Coverage Universe have
announced 3QFY25 results – ACC, ACEM, DALBHARA, ICEM, JKCE, SRCM, and
UTCEM. As expected, cement demand has improved in 3QFY25 led by growth
across sectors. The aggregate volume of cement companies under our coverage
(for results announced so far) grew ~9% YoY (in line), higher than the industry
growth estimate of ~5% led by market share gains by leading players. Blended
realization declined ~9% YoY (+1% QoQ; -1% vs. our est.). Hence, aggregate
revenue declined ~1% YoY. Opex/t was down 3% YoY (+1% vs. our est.), due to
~2%/3%/4% decline in variable costs/freight costs/other expenses. Average
EBITDA/t declined ~34% YoY to INR800/t (vs. est. of INR870). Aggregate EBITDA
dipped 28% YoY (8% below our est.) and OPM contracted 5.5pp YoY (up 2.6pp
QoQ) to ~15% (est. ~16%). Most of the management teams guided an industry
demand growth of ~4-5% YoY in FY25E and ~6-7% YoY in FY26E. Further, they
anticipate demand improvement to drive more price hikes going forward. We
cut our EBITDA estimate for ACC (18%/13%/11% for FY25/FY26/FY27), ACEM
(22%/17%/9% for FY25/FY26/FY27) and DALBHARA (~7%/4%/2% for
FY25/FY26/FY27). We retain our EBITDA estimate for UTCEM, SRCM, and JKCE.
Chemicals:
So far only five companies have reported their results within the
MOFSL Chemicals Universe. ATLP reported an in-line EBITDA, while AACL,
CLEAN, NFIL, and SRF all reported numbers that were above our estimates. The
9
February 2025
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
margin remained under pressure for CLEAN and SRF. The EBITDA for AACL and
ATLP declined sequentially by ~3-8% but was robust for the other companies
that have declared earnings to date. On a YoY basis, robust growth was
recorded across all five companies helped by the lower base in 3QFY24 as well.
Various management teams were skeptical about how Trump’s imposition of
tariffs on China would play out in CY25. However, they were optimistic about
the prospects of their respective companies going forward. Prices appear to
have bottomed out with demand recovering on a gradual basis, which should
continue going forward as well.
Consumer/Consumer Discretionary:
Staples companies had a muted quarter
due to sluggish urban demand, weak winter portfolio uptake, high food
inflation, and steep inflation in palm oil. Companies are implementing price
hikes to offset the inflation. Liquor was strongly driven by Andhra Pradesh’s new
liquor policy, robust P&A demand, and a higher wedding count. UNSP posted
strong 16% P&A revenue growth. QSRs saw a slight improvement, supported by
a favorable base and better dine-in footfalls. Jewelry growth was strong; it was
fueled by festive and wedding demand. KALYAN reported a strong 40% growth
in India. However, operating margins were missed for most companies led by
high inflation, mix, and limited price hikes. Among our coverage, UNSP and
KALYAN reported double-digit YoY EBITDA growth, PIDI, and HMN saw high
single-digit growth, while Dabur, HUVR, and Marico posted low single-digit
growth. JYL, CLGT, GCPL, and Nestle saw a YoY EBITDA decline in 3QFY25.
Consumer Durables:
Aggregate revenue of consumer durable companies under
our coverage grew 16% YoY to INR174.7b (+1% vs. our est.). Aggregate EBITDA
grew 25% YoY to INR17.0b (+2% vs. our est.) and average OPM stood at 9.7%
(up 70bp YoY; in line). Aggregate PAT grew ~23% YoY to INR11.0b (~6% below).
We cut our EPS estimate for HAVL (5-8% for FY25-27), POLYCAB (3-5% for FY25-
27), KEII (6-7% for FY25-27), VOLT (8-14% for FY25-27) and RRKABEL (~12% for
FY26/FY27, each).
Healthcare:
Earnings growth for pharma companies remained healthy. Of the
ten companies, three (LAURUS/CIPLA/AJP) delivered better-than-estimated
earnings. BIOS/PIRPHARM delivered better-than-expected operational
performance, while higher taxes led to lower-than-expected earnings. MANKIND
reported a miss on earnings. The remaining four companies (SUN/DRRD/TRP/
GRAN) posted in-line 3QFY25 earnings. On an aggregate basis, the
domestic
formulation (DF)
business grew ~13% YoY to INR134b for companies under our
coverage. This has been better than the industry (up 7.4% YoY), led by sustained
growth momentum in chronic therapies supported by moderate growth in the
Acute business. All companies reported double-digit growth in 3QFY25 for the
DF segment. DRRD/SUNP delivered strong growth of 14% each in DF business
led by strong execution and new launches. MANKIND reported a 15.5% growth
in DF revenue led by recent acquisitions of BSV. On an aggregate basis, the
US
sales declined 1.2% YoY to USD1.1b, led by lower approvals and pricing erosion.
All the companies saw a moderate decline in the US business. The intensity of
price erosion has been stable at the mid-single digit on a YoY basis. The gross
margin of the DF business expanded led by reduced RM costs. In
the CDMO
space, the earlier quarters' commentary regarding increased RFQs and new
order inflows to de-risk the supply chain is yet to convert to business
10
February 2025
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
opportunities. We upgraded our earnings estimates for LAURUS (4.7%/
2.3%/2.7% for FY25/FY26/FY27), downgraded our earnings estimate for TRP (-
4.3%/-5%/-5.1% for FY25/ FY26/FY27), and Granules (-8.2%/-6.3%/-6.2% for
FY25/FY26/FY27).
Metals:
Within our coverage Universe, JSTL, JSP, COAL, TATA, and HZ reported
their 3Q numbers to date, showcasing a mixed performance. COAL performance
came as anticipated, led by volume recovery and a higher e-auction share post-
monsoon, while JSTL, TATA, and HZ delivered a healthy and better-than-
estimated performances. JSTL/TATA beat was led by muted input costs
offsetting the effect of a weak pricing environment. Losses for TATA Europe also
reduced from USD76/t in 2QFY25 to USD42/t during the quarter, benefiting
from lower fixed costs (BFs closure) and muted coking coal prices. HZ's better
performance was driven by healthy non-ferrous (zinc, led, and silver) prices,
while weak volumes limited its growth. On the contrary, JSP reported weak
performance primarily due to lower-than-expected volume over lower
production headroom. Also, the increase in iron ore cost and lower iron ore
production from Tensa mines have dragged performance further, despite the
healthy NSR growth QoQ driven by better long steel prices.
Oil & Gas:
In 3QFY25, our O&G Coverage Universe has so far reported mixed
results.
RIL’s
3QFY25 standalone EBITDA was up 13% QoQ (4% YoY), driven by a
slight improvement in volumes, higher gasoil, and ATF cracks, higher domestic
product placement, and maximization of ethane feedstock cracking. Consol.
EBITDA was also 4% above our est., driven by a recovery in Retail (EBITDA grew
9% YoY; 8% beat) and O2C (+16% QoQ; 10% beat).
OMCs:
While
HPCL’s
EBITDA
beat our est. by 30%, primarily led by a higher-than-estimated GRM,
IOCL’s
EBITDA missed our est. by 11% led by lower-than-anticipated reported GRM and
high inventory losses.
BPCL’s
performance was largely in line, as weaker-than-
expected refining performance was offset by robust marketing margins. In
addition, OMC’s earnings continue to take a significant hit due to the LPG under-
recovery, amounting to INR31b/INR55b/INR31b for HPCL/IOCL/BPCL.
CGD
entities: MAHGL’s
result came in line due to steady margins and strong volume
growth.
IGL’s
EBITDA beat our est. by 12% due to higher margins and strong
volume growth. EBITDA/scm margin contracted to INR8.3/4.3 for MAHGL/IGL
because of APM twin de-allocation. Volumes for MAHGL/IGL increased 12%/7%
YoY to 4.1/9.1mmscmd.
GAIL’s
EBITDA was 25% below our est., primarily due to
weak gas marketing segment performance. Petchem EBITDA fell 27% YoY.
PLNG
EBITDA missed our est. by 5%; while its total volumes fell to 228Tbtu (est. of
249.5Tbtu, -2% YoY).
MRPL
reported a substantial beat due to a strong refining
performance, with GRM coming in at USD6.2/bbl (est.: USD5/bbl).
Real Estate:
The 3QFY25 results were a mixed bag, with revenue for our
coverage universe being below our estimates, while EBITDA was in line. Revenue
grew ~19% YoY, driven by strong execution and delivery from the developers.
However, due to the lower launches, sales, and marketing costs have not dented
the EBITDA and resulted in 29% YoY growth (in line). Cumulative pre-sales of the
companies that have reported results so far grew 19% YoY to INR250b, higher
than our estimates. Additionally, collections were higher by 29% YoY to INR143b
driven by strong demand on the ground and swift execution for most of the
players. DLF has notably outperformed our estimates, and hence we have raised
11
February 2025
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
its target, while PEPL was short of our expectations due to a lack of launches.
Therefore, we have slightly trimmed our expectations on the operational
matrices and valuation as well. Additionally, Phoenix Mills has undergone a
valuation upgrade.
Technology:
The IT Services companies (within MOFSL Universe) presented a
mixed picture in a seasonally weak quarter, with a median revenue growth of
1.8% QoQ CC in 3QFY25 (2.0%/1.2%/0.7% in 2QFY25/1QFY25/4QFY24).
Guidance upgrades in major companies such as INFO (implies a QoQ decline of
~1.0% in 4Q) and HCLT (implying ~0.6% 4Q CC QoQ growth for ITB&S) were
disappointing. We believe that post-3Q, revenue expectations for FY26/FY27E
have been pared back across the Street. However, the commentary in pockets
turned incrementally positive. We believe the tech spending recovery, earlier
driven primarily by BFSI over the past six months, is now expanding into other
verticals such as Hi-Tech and Retail. This quarter, deal win trends indicate a
gradual rebound in shorter-term deals, signaling a return of discretionary
spending by clients and setting the stage for improved revenue conversion. The
softness in some verticals and geographies continued through 3QFY25, with
Communications and Manufacturing reporting muted growth. The Tier-1 players
posted a median revenue growth of 1.3% QoQ CC, while Tier-2 companies
recorded a strong growth of 3.2% QoQ CC. HCLT (+3.8% QoQ CC in a seasonally
strong quarter) and Coforge (+8.4% QoQ CC vs. 4.9% est.) outperformed their
peers with strong executions in 3Q. Both Tier-1 and Tier-2 companies reported a
~20bp QoQ expansion in margins. The majority of Tier-1 companies reported
stable TCV performance, with LTIM/TCS being an exception in 3Q (up
29.2%/18.6% QoQ). Tier-2 companies also reported robust growth in TCV with
MPHL reporting a growth of 69.6% QoQ & 5 large deals. We prefer LTIM and
INFO in the Tier-1 space, and COFORGE and PSYS in the Tier-2 space.
Utilities:
Within the MOFSL Coverage Universe, JSW Energy, NTPC, and IEX have
reported their 3Q financial results until now, reflecting a mixed performance.
IEX’s
standalone revenue and PAT both surpassed our estimate, primarily due to
a 15.9% YoY rise in electricity volumes and other income. IEX saw strong volume
growth in 3Q, with overall volumes up 17% YoY, including a 15.9% rise in
electricity and a 31% surge in renewables.
NTPC’s
standalone revenue and
EBITDA came in line with our estimate. PAT was marginally below due to a
higher-than-expected tax rate, previous year adjustments, and changes in
regulatory account balances. Gross generation was up 2% YoY in 3QFY25 while
plant availability across both coal and gas plants improved on a YoY basis. JSWE
substantially missed our EBITDA estimates due to lower short-term merchant
spreads and higher opex, while APAT was hit by higher finance costs and lower
other income. The commissioning of 377MW wind capacity during the lean
season led to higher capitalization, finance costs, and depreciation.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing
February 2025
12
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
NOTES
February 2025
13
 Motilal Oswal Financial Services
REPORT GALLERY
RECENT STRATEGY/THEMATIC REPORTS
India Strategy | Review 3QFY25
February 2025
14
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
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30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
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MOFSL has financial interest in the subject company(ies) at the end of the week immediately preceding the date of publication of the Research Report: Yes.
Nature of Financial interest is holding equity shares or derivatives of the subject company
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preceding the date of publication of Research Report.
MOFSL has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of Research
Report:No
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MOFSL may have received compensation from the subject company(ies) in the past 12 months.
4. Research Analyst and/or his/her relatives do not have material conflict of interest in the subject company at the time of publication of research report.
MOFSL does not have material conflict of interest in the subject company at the time of publication of research report.
5. Research Analyst has not served as an officer, director or employee of subject company(ies).
6. MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months.
7. MOFSL has not received compensation for investment banking /merchant banking/brokerage services from the subject company(ies) in the past 12 months.
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
February 2025
15
 Motilal Oswal Financial Services
India Strategy | Review 3QFY25
MOFSL may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies)
in the past 12 months.
9. MOFSL may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
10. MOFSL has not engaged in market making activity for the subject company.
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there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
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8.
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