JPMorgan on Sagility

Initiate Overweight with TP of Rs 54

Niche healthcare player catering largely to nondiscretionary spends

Secular tailwinds from increasing outsourcing in US healthcare

Deep domain expertise and client relationships should drive increased mining

Exposure to non-discretionary spends keeps growth stable

High structural EBIT margins

See 50% earnings CAGR over FY24-27

MS on SBI Cards

Maintain Equal-weight with TP of Rs 650

SBI Card’s November spending market share fell MoM to 14.9% vs. 15.8% in October 2024

Spending fell 20% YoY industry +5% YoY, reflecting ongoing impact (starting February) of RBI notification on corporate card spending

Market share in number of credit cards in force stood at 18.7% as of November 2024

Aggregate daily spending was up 8% YoY so far in December, Vs 4% in November

Jefferies on Telecom

Impact of Tariff Hike Normalizes

In October 2024, the sector’s active subs base jumped sharply by 6.8 million MoM

Bharti/ Jio/BSNL/MTNL gaining share

4G/5G subscriber base fell in Oct, led by Jio, suggesting Jio weeding out inactive 4G customers

Bharti led the data subscriber additions in October implying better and premium customer mix of Bharti

VodaIdea’s subscriber losses continued

Continue to expect Bharti and Jio to gain market share in the near term

MS on Telecom

Industry subs fell for fourth month to 1,150mn (-3.3mn); Airtel’s increased MoM & its market share gap vs. Rjio has fallen 100bp in last 4 mths 

RJio & VIL’s shares were 40% (-21bp) & 18.3% (-12bp), respectively, vs. Bharti Airtel 33.5% (+26bp)

Airtel’s increased MoM; it has been a key beneficiary in last four months post tariff hike.

Airtel’s market share in wireless data subscribers was 31.1% (+37bp) vs. Rjio 51.3% (-19bp), VIL 14% (-4bp) and “Others inluding BSNL” 3.6% (-14bp)

Elara Sec on Defence

Expect fireworks in Q4 as indigenization up

Contract awarding to jump multifold in the next 2-3 years

India’s defence imports drop by 1,100 bps to 28% in FY24

Hindustan Aeronautics – Maintain Buy TP at Rs 5465

BEL – Maintain Buy TP at Rs 345

Bharat Dynamics – Downgrade to Accumulate from Buy; Hike TP at Rs 1300 from Rs 1230

Jefferies on Air Traffic

India’s domestic air pax growth jumped to 12% YoY in Nov-24

In Nov, Industry achieved milestone of 500K+ domestic pax in a day

IndiGo’s PLF climbed to ~90% in Nov, 2nd-best Nov in 5 years; in December so far it has been around 92%

In Nov, IndiGo’s mkt share inched up to record 63.6%, Air India share was 27.3% (11-month low)

ATF prices remain range-bound

PC on Defence

The defence sector stands out as a compelling investment theme, offering multiple growth levers and strong visibility for long-term execution

Key drivers include:

(1) robust order books and a healthy pipeline supporting sustained growth visibility

(2) timely execution enabled by localization and sub-contracting

(3) strategic moats driven by government preference and domain expertise

(4) cash-rich balance sheets with minimal working capital challenges, supported by stage payments

(5) in-house R&D initiatives bolstered by DRDO collaboration

(6) favourable government policies prioritizing local manufacturing, strategic partnerships, and import restrictions

Margins from core defence products are expected to expand

Maintain a positive outlook on the sector

BEL – Initiate Buy with TP of Rs 390

Hindustan Aeronautics – Initiate Buy with TP of Rs 5500

Data Patterns – Initiate Buy with TP of Rs 3400

Solar Industries – Initiate Buy with TP of Rs 12000

Bharat Dynamics – Initiate Neutral with TP of Rs 1400

Antique on ITC

Buy, TP Rs 563

Hotels should continue to deliver strong double-digit sales growth even on a high base.

Only paper business could continue to witness pressure in short term as a result of dumping of Chinese paper & higher domestic wood prices.

Expect cig biz to deliver vol/value growth of 3%/6% in 3Q.

FMCG biz expected to outperform peers 

However, sharp raw material inflation should affect profit margins of both cig & FMCG

Agri biz expected to report healthy rev growth 

ITC is better placed in current challenging environment backed by it’s

a) Broad-based cigarette portfolio,

b) Premium FMCG portfolio,

c) Buoyancy in Hotels,

d) Improvement in the Agri business

Avendus Spark on PVR Inox

Maintain Buy, TP Rs1,910

CY25 Release Calendar Shows Hollywood Movie lineup & Bollywood Capitalising Sequels Standout

Hollywood Studios Lining up 25 Mega Budget Movies, Well Spread Across Next 12 Months

Bollywood Capitalising Sequels To Already Successful Franchises & Proven Genres

Strong Content Creates Room For Price Hikes

There Is Continued Focus On Correcting Cost Structure With Help Of favourable Ind Structure

Macquarie on Siemens

Neutral, TP cut to Rs 6650

Siemens’ 4Q (Sep-Q) earnings call highlighted a near-term slowdown in private capex

While new capex across biz on track, Co highlighted limited near-term visibility on large-value tenders for mobility & energy

Nuvama on Defence

Stay optimistic on with key catalysts at play:

i) Huge localisation push to reduce dependence on disrupted global supply chains

ii) Continued modernisation efforts with larger programs coming ahead of expected timelines

Top picks: BEL, DATA PATTERN

Nuvama on Greenlam

Buy, TP cut to Rs 615

Management meet Key takeaways:

iv) Particle board operations—due to start in Q3FY25—shall be 50% utilised by FY26E.

That said, taking cognisance of near-term challenges, cutting FY25E/26E/27E EPS by 16%/12%/11%