Bajaj Finance Limited’s Q3 FY25 Income print corresponds to the estimates of brokerage on the back of stable credit increase (+28% yoy) and improves operating efficiency, offset by elevated credit costs (2.2% annual).
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Ambuja Cement – Volume Soars but margin falls
We maintain add with a low target price of Rs 600/shares (16.5x its integrated Mar-27e Ebitda). In Q3 FY24, 17% yoy increased on rampups of consolidated volume sangi and pane assets (core volume ~ 5% yoy). However, Unit Ebitda 280/Million Ton Qoq was dropped up to Rs 500/MT, aggressive pricing, plant shutdown expenses and high costs for Sangi and Penna. The management was convinced to reduce OPEX to ~ 3,850/mt (which seems aggressive from the current high level of ~ 4,450/mt) over the next three years.
Amidst major cost initiatives, Ambuja FY 28-end vs. ~ 20/9% FY25 is targeting 60/27% green power/green fuel consumption and will reduce the lead distance by 100 km, which costs the cost Will reduce it primarily.
Bajaj Finance – Powerful Franchise Navigating through an ideal storm
The Q3 FY25 income print of Bajaj Finance Limited is in accordance with our estimates on the back of the stagnant credit increase (+28% YOY) and improves operating efficiency, offset by advanced credit cost (2.2% annual).
Despite a hard macroeconomic environment, the management emphasized that there are signs of improving select pockets and the C4 FY25 is expected to moderate credit costs. The epidemic since the cross-functional investment of Bajaj Finance is gradually reflecting in high throwing and efficiency gains (33%; OPEX-to-AUM 4%), which is likely to maintain on fy26e-fi27e Is. Bajaj Finance is designed for ~ 23% AUM CAGR in the medium period, in addition to new products, as well as provides strong profitability.
We trim our FY25/FY26 estimates marginally for factor in high credit costs, offset by high fee income; Buy with a revised RI-based target price of Rs 8,535 (contained 4.3x SEP-26 adjusted book price per share; 22x SEP-26 EPS).
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