Swaraj Engines Ltd | Q1FY25 Result Update | A complete shift of business from Kirloskar H2FY25 onwards, BUY! CMP: Rs 3,006 | Target Price: Rs 3,472 | Return: 15.5% | Rating: BUY During Q1FY25, Engine sales significantly outperformed the industry due to market share gains and the shift of business from Kirloskar. This, combined with lower input costs, supported better margins (+14bps YoY and +23bps QoQ). The company continued its strong performance, reporting its ninth successive quarter of YoY engine sales growth. Considering high-capacity utilization and future demand, the company increased its capacity from 150K to 195K units annually through internal accruals. Recent on-ground dealer checks suggest that tractor sales are poised to pick up, driven by expectations of a better monsoon, reopening of subsidies & a low base of H2FY24. Management indicated that there will be a complete shift of business from Kirloskar to Swaraj Engines starting H2FY25, which will boost volumes above the industry average. The company's sales outperformance relative to the industry is expected to continue, as ‘Swaraj’ is recognized for quality in the industry. The additional volume from the business shift will further enhance sales. Considering the company's sound fundamentals, consistent dividends, and potential business growth, SWE presents a good investment opportunity. We have increased our multiple from 20x to 22x, considering the imminent full business shift from Kirloskar to Swaraj Engines. We upgrade to a BUY rating with a revised fair value of Rs 3,472 per share (22x FY26e EPS of Rs 158). Q1FY25 result analysis¬ – marginally below estimates, widely outperformed industry • Q1FY25 Revenue/EBITDA/PAT were slightly below our estimates by ~4%/5%/5% respectively, yet share gains and business migration from Kirloskar were evident. • Despite industry growth of 0.5%, SWE sold 41,849 engines, marking an 8.9% YoY growth, maintaining its outperformance. However, realization dropped by 4.0% YoY to Rs 99,881 per unit due to metal price corrections. • EBITDA Margin stood at 13.9%, 8bps lower than our estimates but higher by 14bps YoY and 23bps QoQ. This was primarily due to a Gross Margin improvement of 53bps YoY to 21.2%, driven by softer input costs and scale advantage. However, this was offset by an increase in Employee Costs and Other Expenses by 17bps and 23bps respectively. • Employee costs increased, likely due to annual salary revisions, while other expenses rose due to higher engine sales and general inflation. • The company reported its ninth successive quarter of YoY PAT growth. Its capacity augmentation program, increasing from 150,000 to 195,000 units per annum, has been completed. • The enhanced engine production capacity is now fully operational to meet future engine demand. On-ground checks indicating greater optimisim in tractor dealers body language • Based on our field checks, the body language of dealers suggests that the tractor industry is poised for double-digit growth starting from Navratri. The second half of FY25 looks promising for the industry. • This optimism is due to several factors: 1) A low base from the previous year, as the industry experienced a sharp decline in the second half of FY24. 2) Normal monsoon in 2024. 3) The reinstatement of subsidies, which are typically paused across India during elections. 4) Additionally, crop prices have remained strong this year. • The current inventory level is near normal at about one month. Swaraj Tractors does not offer any discounts, while dealer discounts have been stable for the past six months. Proved its outperformance over the long period, confident of sustaining the same • The domestic tractor industry posted a 3.2% CAGR from FY14 to FY24, compared to this Swaraj's engine sales CAGR of 6.5% and revenue CAGR of 8.9% over the same period were way better. • We anticipate the continued outperformance of Swaraj due to its recognized quality, market sha

Bajaj Auto Ltd | Q1FY25 Result Update | 2W CNG to taste success, PLI supporting margins, Valuation expensive! CMP: Rs 9,708 | Target Price: Rs 8,482 | Return: -12.6% | Rating: SELL Q1FY25 PAT is ~2% higher than our estimates, primarily as the company started receiving PLI incentives. We continue to believe that Bajaj has a strong presence in the Pulsar portfolio & three-wheelers, and anticipate that the two-wheeler CNG product to succeed based on our on-ground checks, although Platina volumes may be impacted. However, more efforts are needed in other areas such as the commuter segment and premium motorcycles (350cc+) to achieve desired results. We maintain our view that most near-term positives are already reflected in the stock price, and the valuation appears expensive considering the slower-than-expected pickup in exports and rising commodity prices. We anticipate Volumes/Revenue/EBITDA/PAT to grow at a CAGR of ~13%/21%/24%/22% respectively from FY24 to FY26e. Domestic volume drivers include: 1) continued momentum in ICE 2Ws along with growth in two-wheeler CNG, 2) new launches in the Pulsar and premium portfolios, 3) expansion in e3Ws, and 4) increasing touchpoints with the introduction of new products in e2Ws. Although exports are taking longer than expected to pick up, gradual QoQ improvement is guided. Margins are expected to remain at 20.2% in FY25, rising to 20.7% in FY26. Based on our estimates, the stock is trading at an expensive valuation of ~25x FY26e EPS of Rs 395. We maintain SELL rating with a revised fair value of Rs 8,482 per share, as most near-term triggers appear to be priced in. Tweaked estimates marginally. Q1FY25 – Slightly ahead of estimates, PLI incentives supported margins! • Revenue/EBITDA/PAT exceeded our estimates by ~2%/4%/2% respectively. The increase in blended realization occurred despite a lower mix of exports and three-wheelers QoQ basis. • The growth was driven by 1) Price increases, 2) Better mix within two-wheelers, 3) Higher spare parts sales, 4) PLI benefits, which improved the EBITDA margin by about 50 basis points in Q1FY25. • Back-of-the-envelope calculations suggest that the company received ~Rs 900mn in PLI benefits in Q1FY25, with more benefits expected in the coming quarters as the company recently launched a scooter priced under Rs 1 lakh, which has yet to receive the PLI certificate. • In addition to PLI incentives, EBITDA margin improvement was supported by scale benefits, cost reduction, and a favorable mix. These factors were partially offset by the negative margins from the electric two-wheeler business. • Internal metrics are strong, with the highest realization and EBITDA per unit reported. Revenue, EBITDA, and PAT all showed double-digit YoY growth. Additionally, the cash balance of Rs 167.6bn is very healthy and more than sufficient to support new business ventures. 2W hybrid likely to taste success, negative impact on Platina & competitors models • Market Reception: Our checks indicate that the 2W hybrid model (CNG + Petrol) is receiving good inquiries and reasonable bookings, even without potential customers seeing or testing the motorcycles. Inquiries are strong even in states where this model will launch on or after October 2024. • Customer Demographics: The primary customers are shopkeepers, small business owners, and mileage-conscious individuals over the age of 45. Younger customers are not widely preferring the hybrid model, likely due to its simple looks. Delivery executives are mostly preferring e2Ws due to their significantly lower running costs. • Customer Trends: Most Platina customers are inquiring about or booking the 2W hybrid model. There are also marginal walk-ins from customers of listed competitors. • Mileage and Cost Considerations: For most customers of 100-125cc models, mileage and resale value are of utmost importance. According to our back-of-the-envelope calculations, in actual road conditions, the running cost for the 2W

Mankind Pharma Ltd | Management Visit Update | Increasing chronic share will lead to higher revenue CMP: Rs 2,124 | Target Price: NA | Upside: NA | Rating: NA We met the AVP IR Head and Strategy of Mankind Pharma, key takeaways of the meet are as follows: In licensing deals: Mankind Pharma has secured a license for Novartis’ heart failure therapy, Entresto, in India. Additionally, it has also partnered with AstraZeneca Pharma India to exclusively distribute its anti-asthma drug Symbicort in India. AstraZeneca will retain the intellectual property rights to Symbicort and continue as the marketing authorization holder. Mankind is actively looking out for in licensing deals to expand its presence on the chronic side. DMF quality API: The company has introduced 120 DMF (Drug Master File) quality medicines to the Indian market, leveraging its first-mover advantage. With 75% of the manufacturing done in-house, the company ensures the highest quality standards for its DMF. The Drug Master File contains detailed information about an API, guaranteeing standards for manufacturing, stability, quality, packaging, purity, and impurity profiles. Mankind Pharma's DMF quality API adheres to US Pharmacopeia standards and is produced in USFDA-approved plants, ensuring the quality and efficacy of its medicines. Dydrogesterone: The drug is sold under the brand name Dydroboon and is used to treat female infertility, various menstrual problems. The total market in India is of Rs. 2000 Mn and Mankind has 20% market share in this. The largest player in this market is Abbott. The current capacity utilization for Dydrogesterone plant is 60%. M&A: The company is not looking out for any acquisition and don’t want the burn the cash. Rather it is open for some asset acquisition on the chronic side of the business. Domestic market: The company is mainly focused on increasing its India business and is focusing on increasing its market share in chronic from 36% in FY24 to 40%-50% in coming years. The gross margin in chronic business is 10-12% higher than the consolidated business. Doctors reach: Mankind has one of the highest doctor reach of 5 Lacs doctors in India and it has the highest prescription share as well. The company also has one the highest MR (Medical representative strength of 16000 MR’s with a PCPM of Rs. 6.5 Lacs per month. EBITDA Margin Expansion: The company plans to increase its EBITDA margins further from 24.7% in FY24 to 25%-26% in FY25. The company is seeing an increase in the number of Rs. 100 crore and Rs. 50 crore brands. Once a brand reaches the Rs. 50-100 crore threshold, the incremental effort required decreases, leading to improved productivity and profitability. Also, the growing share of chronic portfolio will aid the margins. Margin profile: Chronic has the highest EBITDA margins, followed by Exports, Acute, and the Consumer business. Currently, the margins for the Consumer business are in the mid-teens, with expectations for further growth. NLEM: The company has a 15% exposure to NLEM compared to 20% for the IPM. However, due to in-house manufacturing of quality DMF and providing affordable drugs, the impact of NLEM on the company is negligible, as most of the drugs are priced below the NLEM limits. Export: The export sales in FY24 of the company stood Rs. 8130 Mn growing has a 175% YoY. This was mainly driven due to increased US business due to certain one-off opportunity due to drug shortages in US. Going ahead, Export business is expected to grow by 10-15% despite a high base in FY24. Outlook: Mankind's robust presence in India is strengthened by its expanding chronic disease offerings and strategic expansions in specialty portfolios through multiple in-licensing agreements. We are confident in Mankind’s operations, supported by its diverse regional presence, improved balance between acute and chronic care segments, and the growth of its Consumer Healthcare division. With competitive p

Apollo Hospitals Enterprise Ltd | Q4FY24 Result Update | Hospitals business to drive growth CMP: Rs 5,840 | Target Price: Rs 7,230 | Upside: 24% | Rating: BUY Q4FY24 revenue was in-line with our estimates, however higher employee cost led to deviation in EBITDA by 4%. Hospitals revenue grew 17% YoY driven by volume growth, network expansion, and improved payer mix. Hospitals EBITDA grew 19% on YoY basis. The overall hospital occupancy remained steady at 65%, supported by a strong increase in patient flows across facilities. This increase in occupancy was achieved even after recalibrating some beds for specific specialty clinical needs and optimized realizations. ARPOB grew by 12% and stood at Rs.59,523. The Pharmacy distribution segment registered a growth of 17% YoY with revenues of Rs 20.2 bn during the quarter due to increased patient’s base and 35% YoY growth in GMV. The pharmacy distribution segment recorded EBITDA of Rs. 117 Mn in the quarter on account of optimization of cost and growth in operational revenue coming from Offline Pharmacy distribution. Apollo plans to add 1860 beds by FY26 with capex of Rs 21.3 Bn, contributing to hospital business revenue growth. With anticipated declines in the losses of the 24*7 diagnostics business, the overall EBITDA margins are expected to improve in the future. The company is implementing cost optimization measures, coupled with the growth in surgical volumes, these measures are expected to improve hospital business margins by 150 bps. The next leg of growth will come from 1) Addition of Beds in hospital segment with further improvement in payor and case mix 2) Significant growth in GMV 3) Cost optimization, reduction in losses of 24*7. On an overall basis, we are positive about the prospects of Apollo. We maintain our Buy rating on the stock. Decent topline growth lower losses from digital business led to improved margins • The company registered revenue growth of 14.9% on YoY basis and was flat (+1.9%) on sequential basis to Rs. 49.4 Bn. This was mainly due to higher growth hospital business which has witnessed growth of 17% YoY, whereas pharmacy distribution revenue grew 13% YoY to Rs. 20.2 Bn. • EBITDA margin for Q4FY24 increased by 161 bps YoY and by 30 bps QoQ to 13%. The YoY improvement in margins was due to reduced losses of 24*7 from 1.8 Bn in Q4FY23 to loss of Rs. 1.4 Bn in Q4FY24. • Occupancy across the group was 65% in Q4FY24. ARPOB was Rs 59,523 in Q4FY24 as compared to Rs 57,488 in Q4FY23 registering growth of 12%. ALOS was 3.3 days. • Healthcare services posted an EBITDA margin of 23.1%, Pharmacy has margin of 0.6% (after adjusting for 24x7 operating costs) and AHLL—10.1%. • Inpatient volume grew by 6.1% YoY to 142K whereas outpatient volume grew by 4.4% to 479K. Outlook and Valuation: We hold a positive outlook on Apollo's future, driven by favourable demand dynamics. We anticipate strong performance in both healthcare services and the pharmacy segment. Furthermore, we anticipate AHLL to achieve remarkable outcomes. Based on SOTP valuation we arrive at target price of 7,230 (implied EV/EBITDA multiple of 25.5 on its FY26E EBITDA), offering 24% upside from current levels. Buy.

NOCIL Ltd | Q4FY24 Result Update | High competitive intensity, premium valuations, bumpy road ahead, Maintain SELL CMP: Rs 259 | Target Price: Rs 213 | Downside: ~18% | Rating: SELL NOCIL reported weak operational performance during the quarter. Revenue de-grew by ~9% YoY but grew by ~5% QoQ. Volume grew by 2% YoY & 12% QoQ largely led by strong offtake in export market, although realization remained weak declining by 11% YoY & 7% QoQ. Domestic market remained muted because of heavy imports from China & it is anticipated to continue in the coming quarters as well. Management stated that NOCIL is well placed & will be able to ride the negatives currently faced by rubber chemical players & expects long-term outlook is good because of robust tyre & replacement demand. Higher competition from China is a major concern as imports of accelerator witnessed ~32% YoY growth in FY24 which impacted gross & EBITDA spreads & led to subdued volumes in domestic market. Since, the business does not have protection from ADD which is the major reason why rubber chemical players are struggling to maintain margins. Adding to the tensions, some new rubber chemical supplies globally are coming up in H2FY25E which will further heighten competitive intensity globally, it remains under our watch how demand pans out. Still, the long-term growth story remains structurally positive for NOCIL, led by tyre players expanding capacity & investing to the tune of Rs200-250bn over FY24-26E leading to increased usage of rubber chemicals. However, higher competitive intensity, weak return ratios & premium valuations make NOCIL unattractive at current juncture. Hence, we maintain our SELL rating on the stock. Q4FY24 reported weak EBITDA spreads, Chinese imports a major cause of concern • Realization declined by 11% YoY & 7% QoQ largely because of weak demand from domestic market & higher imports.The company’s gross spread per kg declined by 7% YoY & 15% QoQ to Rs ~107 per kg in Q4FY24. • Considering uncertainity owing to higher imports of rubber chemicals from China & other countries which increases competitive intensity, we remain cautious on operating spreads and volumes of the company. • Accordingly, we model in EBITDA spreads of ~Rs 39/44.5 per kg for FY25/FY26E respectively, factoring in cut of 6%/5% on FY25/26E respectively. • We have witnessed higher imports in FY24 to the tune of 32% YoY of rubber accelerators and with competitors in China dumping along with expanding their capacity coupled with subdued demand in Chinese market is leading to higher dumping in world markets including India. Sequentially volumes higher, mid high single digit volume growth for next 3 years • In Q4FY24, volume grew by ~2% YoY & 12% QoQ. Generally speaking Q4 volumes remains high because of higher stocking by tyre companies. Management stated that domestic volumes remained subdued but export volumes witnessed recovery despite weak & global recessionary trends persisting. With domestic tyre companies increasing capacity and investing close to Rs200-250bn over FY23-26E, we feel there is no worry on incremental demand growth for the next 3 years. • We expect that the company expanded capacity of 55,000 TPA is likely to reach optimum utilization levels in the next 2 years. On the back of this, we expect NOCIL to report volume CAGR growth of mere ~7.5% from FY24-26E. Valuations • We feel that near term concerns like highly competitive intensity led by surge in Chinese imports, global recessionary trends impacting volumes, weaker return ratios, lowering speciality sales & premium valuations make NOCIL unattractive as an investment bet. • We value the stock on P/E multiple maintaining ~20x P/E on March 26E projections and arrive at target price of 213 per share which indicates downside of ~18% from the current level. Hence, we maintain our SELL rating on the stock.

Ahluwalia Contracts (India) Ltd | Q4FY24 Result Update | Weaker on margins, likely to normalize ahead… CMP: Rs 1,210 | Target Price: Rs 1,150 | Upside: 4.9% | Rating: Reduce Ahluwalia Contracts (India) Ltd reported mixed set of numbers for Q4 FY24. The company achieved commendable revenue growth, largely driven by the accelerated progress made on existing contracts and the rising contribution from newer project. Additionally, it has been highlighted that the growth could have been even better if not for a) the shortage of labour, b) the construction bans by NGT in the Delhi-NCR region, and c) the impact on project execution due to the ongoing General Election. However, the lower-than-envisaged topline coupled with higher raw material and sub-contracting expenses has translated into lower operating margin, ultimately resulting in subdued performance at (adj.) net level. Having said that, the net cash position stays with healthy operating cash flow generation and controlled capex. Going forward, barring expectation of subdued performance in Q1 FY25 due to ongoing labour issues, the company is set to experience stronger growth in the future with an expected improvement in the project executions on a strong order backlog. Additionally, favourable project mix, and better cost controls to result in enhanced margins from current level. Cash surplus position is set to strengthen as profitability improves, with no significant increase in exposure to asset-heavy ventures. Overall, outlook remains bright. However, the stock is trading at a premium valuation given a significant run-up in the stock price in recent past. Consequently, we see limited potential. With this, we downgrade stock to “Reduce” rating with revised target price of Rs1,150/share. Revenue improved handsomely; however, margin was a letdown. Overall, a mixed bag. • Revenue from operations rose 34.8% y/y to Rs11.6bn driven by the accelerated execution pace on the robust order backlog. On a sequential basis, the revenue improved 13.4 • Gross margin moderated to 17.2% (down 369 bps y/y, 150 bps q/q) mainly impacted by rise in raw material and sub-contracting expenses. This moderation played a crucial role in decline in operating margin to ~9.0%. Higher incidence of employee cost and other expenses has also played a part in subdued margin performance. • The company reported PAT of ~Rs2bn in Q4 FY24. However, it included an exceptional gain of ~Rs1.9bn pertaining to an arbitration award from Emaar MDF (in the Common Wealth Village project case). Adjusted to the one-off, PAT has declined 25.7% y/y and 24.1% q/q (to Rs536mn) – largely impacted by lower operating profitability and higher depreciation expense. Outlook and Valuation: The revenue projection for FY25 has been adjusted downward due to ongoing labour challenges. Conversely, we expect higher growth rate for FY26 on the anticipation of improved execution stemming from strong order backlog. Effectively, revenue to improve at 21.2% CAGR over FY24-26E. Margin to remain favourable despite anticipated pressure in Q1 FY25. As a result, we anticipate 35.5% PAT CAGR. At CMP, the stock (ex. Kota investment) is trading at rich valuation of 19.1x FY26E P/E. We have valued the construction business at 18x FY26E, while the Kota asset is considered at its BV of Rs12/share. Thus, we arrive at the Target price of Rs1,150. Reduce.

Lumax Auto Technologies Ltd | Q4FY24 Result Update | Robust guidance, adding new clients, winning businesses, Maintain BUY! CMP: Rs 482 | Target Price: Rs 600 | Upside: 24.5% | Rating: BUY The Q4FY24 PAT was ~10% lower than our estimates, primarily due to a slightly lower margin for IAC India and the inclusion of Lumax Ancillary Ltd, which has thin margins. The company has provided robust guidance for consolidated topline growth of 20-25% for FY25 with nearly similar margins. Emerging subsidiaries are expected to grow by 40-60%. This, combined with a strong order book of Rs 9bn, the start of Tata Motors order execution at IAC, and planned debt reduction, positions the company well for accelerated earnings growth. Due to accounting changes, IAC India's EBITDA margin is now guided lower at 16% on a sustainable basis, although the growth outlook remains strong at over 20%. We anticipate a Revenue/EBITDA/PAT CAGR of approximately 20%/21%/32% for FY24-FY26e, which will generate strong cash flows and allow for debt repayment. This will result in increased other income and lower interest costs. Given the strong execution guidance, success in adding new large clients (such as Tata Motors in IAC India), winning new business from anchor customers (such as M&M's 3XO), and continued high double-digit growth in emerging subsidiaries, we are compelled to increase the multiple from 16x to 18x FY26e EPS of Rs 33.3. We maintain BUY rating with a revised fair value of Rs 600 per share. Q4FY24 Result Analysis – Strong show! • Revenue/EBITDA/PAT stood at ~Rs 7.6bn/Rs 919mn/Rs 442mn, reporting YoY growth of around 54%/62%/137% respectively in Q4FY24. • The YoY performance appears impressive due to the inclusion of IAC India, strong performance from key clients, and the acquisition of Lumax Ancillary Ltd (LAL). • LAL will be merged with the company effective April 1, 2024 (pending approvals). This merger aims to simplify the corporate structure, reduce the number of group companies, cut costs, and increase operational efficiencies. • The YoY EBITDA Margin improved by 65bps to 12.1%, mainly due to IAC India and improvements in the standalone business (+37bps YoY to 9.0%). • Strong YoY operational performance, along with higher other income (~+238% YoY to Rs 179mn, mainly dividends from Lumax Mannoh) and a lower effective tax rate (-196bps YoY to 16.9%), boosted the bottom line. • On a yearly basis, LATL posted robust growth of ~53% in topline, an improvement in EBITDA Margin by 220bps YoY to 13.0%, and a consolidated PAT increase of around 40% YoY to Rs 1.3bn. The company generated FCF of Rs 1.17bn in FY24 compared to a negative Rs 3.35bn in FY23. Key growth drivers ahead • IAC India: Anticipates 23% revenue growth in FY25, driven by the addition of new customer Tata Motors and new business wins such as 3XO. Key customers M&M and Maruti Suzuki have a strong model pipeline. EBITDA margin guidance has been revised down to a sustainable level of around 16% due to changes in accounting policies. • Lumax Mannoh: Gradual shift to high-margin automatic gear shifters (3x the realization compared to manual gear shifters) and an increase in export opportunities, expanding from two countries (Indonesia and Malaysia) to five, are expected to drive an 18% revenue increase in FY25, with some margin improvement to 17.3%. • Lumax Cornaglia: With anchor clients outperforming, localization efforts, and the introduction of plastic fuel products, the business is expected to grow. The aim is to increase plastic fuel tank revenue to 40% of Lumax Cornaglia's total in 2-3 years due to significant order wins mainly from Tata Motors. This entity is projected to achieve 22% growth in FY25, with an improvement in EBITDA margin to 18.2%. • Standalone: Increasing contribution from higher-margin aftermarket and LED products, the addition of LAL from FY25, new business wins from Bajaj Auto (including the Chetak model), and the anticipated rebound in Bajaj’s ex

HealthCare Global Enterprises Ltd | Q4FY24 Result Update | Profitability set to improve further, Maintain Buy CMP: Rs 360 | Target Price: Rs 434 | Upside: 21% | Rating: BUY HealthCare Global Enterprises (HCGEL) revenue were in-line with our estimates; however, EBITDA and PAT surpassed our estimates due to operating leverage playing out well. Most of the centers have been contributing to EBITDA and experiencing growth. Previously, two youngest hospitals, Kolkata, and South Mumbai, negatively impacted the EBITDA margin. However, Kolkata began contributing positively in Q3FY24 onwards and South Mumbai has also reduced its losses. We expect South Mumbai to break even by mid-year 2025. The new centres continued their scale-up trajectory with strong revenue growth of 15% YoY while existing HCG centres registered a growth of 11% YoY. ARPOB has been steadily increasing and has seen growth of 9.1% YoY. Since the occupancy of the new centers has reached 64%, matching that of mature centers, we anticipate further improvements in ARPOB due to enhancements in case and payor mix. Hospitals in Ahmedabad, Indore, Nagpur, and Mumbai continue to witness double-digit growth, further strengthening profitability. We believe that HCG can improve its profitability by combining efforts to enhance operational efficiency, refine pricing strategies, optimize cost structures, and boost performance in new centers. Our outlook on HCGEL is favorable and we continue to maintain our “Buy” rating on the stock. Strong performance due to increased ARPOB and occupancy • HCGEL reported strong topline growth in Q4FY24, which flowed to EBITDA and PAT. Revenue on a YoY basis witnessed growth of 12% YoY and 5.3% QoQ due stable occupancy of 64.9% (despite bed addition, like to like basis occupancy increase by 370 bps to 67.6% in the quarter). • ARPOB was at Rs 42,741 for Q4FY24 as compared to Rs 39,713 for Q4FY23 and Rs. 42,788 in Q3FY24. Overall ARPOB improved by 7.6% due to increased OPD footfalls (19% YoY). The chemo sessions administered in the quarter witnessed growth of 13% YoY to 38,000 sessions. • ESOP cost in the quarter was Rs. 21 Mn and there was an exceptional gain of Rs. 39 Mn in the quarter related to impairment charge for a greenfield project at leased premises. The existing hospitals had an EBITDA margin of 24% while the new centers have EBITDA margin of 14% in the quarter. • The number of IVF cycles for Milann in Q4FY24 was 375 which has seen decline of 18% YoY and 2% QoQ. The nos. are not comparable as the company has closed one centre in Delhi. Milann recorded revenues of Rs 170 Mn in Q4FY24 which has seen degrowth of 19% YoY. Outlook and Valuation: The existing and newly established centers are expected to exhibit strong performance in the future. We expect an EBITDA CAGR of 17% from FY24-FY26E. As the emerging centers would move closer to mature centers, the EBITDA margins would improve from 17% in FY23 to 20-21% in FY26. We value the stock at 15x EV/EBITDA with respect to FY26 EBITDA to arrive at the target price of Rs 434. We maintain our “Buy” rating.

Suprajit Engineering Ltd| Q4FY24 Result Update | Back to growth mode, Maintain BUY! CMP: Rs 437 | Target Price: Rs 503 | Upside: 15.1% | Rating: Buy Q4FY24 PAT exceeded our expectations by 13%, reaching Rs 591mn, primarily due to higher than anticipated Other income and a lower effective tax rate. The management's body language has turned positive, and their commentary across segments indicates robust performance with expected margin improvements. FY24 was relatively soft, mainly due to macroeconomic concerns in export markets and a muted aftermarket. However, the guidance for FY25 is promising: SCD: The company is winning new large contracts globally, with an NDA signed, hinting at a near-future acquisition. The non-auto division is expected to see marginal growth. Projects double-digit revenue growth with improved margins in FY25. DCD: Plans to expand beyond cables, with aftermarket growth anticipated. Anticipate double-digit revenue growth with consistent margins. PLD: Restructuring is complete, achieved the best margins. Foresees double-digit growth and margins. SED: Deliveries of actuators, digital clusters, and throttle position sensors are reaching new highs, with robust new order wins continuing. Aims strong growth with good margins. Overall, consolidated revenue growth is expected to be in double digits for FY25, with margin improvements anticipated. We maintain a BUY rating with an upwardly revised fair value of Rs 503 per share. Q4FY24 Result Analysis – One more outperformance! • Revenue and EBITDA broadly aligned with our estimates, but PAT exceeded expectations due to higher Other income and a lower effective tax rate. • Revenue for Q4FY24 was approximately Rs 7.83bn, marking a 12% YoY increase driven by growth across various segments: DCD (+15% YoY), PLD (+9% YoY), SCD (~+4% YoY), and a robust Q4 performance for SED at Rs 268mn. • The EBITDA margin decreased by 40 basis points YoY to 12.1%, due to lower margins in the SCD (-290bps YoY to 7.3%) and DCD (-104bps YoY to 17.3%). This was offset by significant margin improvement in the PLD (+654bps YoY to 15.1%, the highest ever) and a strong margin for SED at 12.8% in its first year of operations. • Reported PAT was Rs 591mn, a 44% YoY increase driven by a rise in Other income (+247% YoY to Rs 194mn) and a lower effective tax rate (-994bps YoY to 19.5%). • The increase in Other income was due to MTM adjustments and gains from mutual fund investments. Annual growth in FY24 was lower due to a subdued performance in the export market, impacted by macroeconomic concerns, and muted domestic aftermarket growth. However, FCF generation was healthy at approximately Rs 1.58bn in FY24, compared to a negative Rs 1.7bn in FY23. Ready to take-off driven by growth across divisions • Suprajit Control Division (SCD): After a muted FY24 due to macroeconomic concerns, SCD is expected to perform well in FY25, winning large global contracts, particularly in North America. SCD is projected to report a 15% YoY growth to approximately Rs 15.7bn, with margins potentially improving to around 9.0% in the current fiscal year. • Domestic Cables Division (DCD): With the majority of revenue coming from the two-wheeler market, which is on a strong recovery path in FY25, along with growth in the aftermarket and beyond cables, DCD is expected to support a 15% YoY growth to approximately Rs 12.5bn in FY25. The EBITDA margin, already at a respectable 17.5% in FY24, is anticipated to improve slightly to 17.7% in FY25 due to operating leverage. • Phoenix Lamps Division (PLD): Reporting a 15.1% EBITDA margin in Q4FY24, PLD is expected to maintain this level in FY25, benefiting from the positive effects of Trifa and Luxlite restructuring, operating leverage, and a direct exports strategy. A 10% revenue growth to approximately Rs 4.3bn is anticipated for the ongoing fiscal year. • Suprajit Electronics Division (SED): With a remarkable 107% YoY growth to Rs 1.15bn in FY24, SED i

Campus Activewear Ltd | Q4FY24 Result Update | A holistic growth strategy to steer the future CMP: Rs 251 | Target Price: Rs 299 | Upside: 19% | Rating: Buy Campus Activewear delivered better-than-expected performance driven by recovery of lost market share, optimisation of overhead expenses and reduced finance costs. Revenue grew in mid-single digit supported by improvement in volumes as the company undertook initiatives to recover the lost market share. Operating and net profit improved significantly, largely due to reduced overheads and lower interest costs following substantial loan repayments by the company. The working capital cycle for the company improved considerably on back of reduction in inventory and receivables days. The company has revised its growth strategy from being driven by premiumization to focusing on a more holistic and comprehensive growth led by volume rather than price. It has redirected its focus on trade distribution channels, consolidated its distributors and expanded its product portfolio for mass segment to gain market share. We raise our FY25/26E EPS estimates marginally by 7%/1% largely supported by revival in sales on implementation of new trade distribution policy, rationalisation of expenses and reduction in interest cost. We anticipate that robust double-digit revenue growth will drive operating leverage, resulting in a 200-300 basis points margin improvement, and leading to a CAGR of 29%/43% for EBITDA/PAT over FY24-26E. Maintain BUY. In-line revenue with beat on margins • Topline grew by 5% YoY led by recovery in lost market share leading to volume growth of 4%. Revenue grew by 20%, 14% and 10% respectively in the states of UP, Bihar and Maharashtra which are the major markets for the company. • Gross margins at 50% contracted 153bps/141bps YoY/QoQ while EBITDA margins improved by 130bps/564bps on YoY/QoQ. PAT grew by 43%/32% YoY/QoQ supported by both reductions in overhead expenses and interest cost as the company repaid ~Rs1.5bn debt. • The company has revamped its growth strategy to focus on the mass segment and target volume growth. Additionally, it has expanded its product offerings in the open and economical categories to reduce business cyclicality. • The company opened 18/66 new stores in Q4FY24/FY24 taking the total count to 268. The company plans to open new stores at a run rate of 80-100 in the coming years. Outlook and Valuation: We have raised our FY25E/26E EPS estimates by 7% and 1%, respectively, driven by sales revival due to the implementation of a new trade distribution policy, a shift in growth focus towards the mass segment, expense rationalization, and reduced interest costs. We reaffirm BUY rating and value the stock at 50x PE FY26E EPS of Rs6 to arrive at a TP of Rs299.

Steel Strips Wheels Ltd | Q4FY24 Result Update | Favourable mix to drive EBITDA per wheel, Maintain BUY! CMP: Rs 218 | Target Price: Rs 315 | Upside: 44.5% | Rating: Buy The Q4FY24 reported PAT exceeded our estimates by approximately 8%, driven by higher other income and a lower effective tax rate. We project total volumes to increase from 19.0mn in FY24 to 21.7mn units in FY26, representing a 7% CAGR. While the commercial vehicle segment may experience slower growth, other segments and exports show strong potential. Significant growth in alloy wheels exports, long-term agreements signed with several tractor OEMs, identification of new growth markets for OTR, the initiation of a high-margin knuckle casting project for three OEMs, and consistent growth in export steel wheels are expected to drive volume growth. Due to improvement in the mix (alloys, exports, tractors/OTR, knuckle casting), we anticipate the EBITDA margin to increase from 10.7% in FY24 to 11.3% in FY26. Consequently, EBITDA per wheel is projected to rise from Rs 244 in FY24 to Rs 267 in FY26. The volume guidance across segments (including exports) is expected to be in the low to mid double-digits, with the exception of commercial vehicles (flattish outlook). We have adjusted our estimates to reflect changing industry dynamics, conservatively revising the fair value to Rs 315 per share (9x FY26e EBITDA). We maintain a BUY rating, anticipating significant upside potential. Q4FY24 – In-line operational performance, PAT higher than estimates • Revenue came in at Rs 10.7bn, higher than estimates by 3.5%, while absolute EBITDA was near in-line at ~Rs 1.1bn in Q4FY24. • Despite QoQ lower contribution from CVs & Export, EBITDA Margin was just dropped by 12bps QoQ to 10.4%. EBITDA per wheel was down by ~5% to Rs 239. • PAT was near flattish QoQ at Rs 603mn in Q4FY24, supported by higher Other income (~+327% QoQ to Rs 72mn) and lower effective tax rate (-497bps QoQ to 10.9%). The bottom line was higher than our estimates by 8.1%. EBITDA per wheel to improve heron • Steel Strips Wheels Ltd (SSWL) improved EBITDA per unit from Rs 116 in FY17 to Rs 244 in FY24 through better product mix and efficiencies. We expect EBITDA per unit to rise to Rs 255 in FY25 and Rs 267 in FY26. • The high-margin alloy wheels' revenue contribution is projected to increase from ~28% in FY24 to ~30% in FY26. Similarly, exports are expected to grow from 14.6% in FY24 to 15.3% in FY26. • Additionally, mid-teens margin businesses such as Tractors, OTR, and the start of Knuckle casting revenue will further enhance value. • Alloy domestic growth is projected at an ~8% CAGR from FY24 to FY26 due to premiumization, with alloy exports expected to grow at a high double-digit rate (50% CAGR on a low base). • SSWL is targeting existing aftermarket steel wheel customers for cross-selling alloys in international markets, indicating strong growth potential. • The company has signed long-term agreements with several tractor OEMs and identified new international markets for the OTR segment, supporting growth and margins. • It is negotiating price revisions with a few car steel wheel customers, which should further boost EBITDA per vehicle. • We believe the company has the potential to achieve EBITDA margin in the low teens, but we conservatively estimate a gradual margin improvement from 10.7% in FY24 to 11.3% by FY26. No major capex, good FCF generation will get use to repay debt • No major capital expenditure is anticipated as AMW has been acquired and alloy wheels capacity has been expanded to nearly 5mn units annually. • FY25e capex will be around Rs 2.25bn, with only Rs 400mn capital expenditure required annually for maintenance starting FY26. • SSWL is expected to generate close to Rs 6bn in free cash flows combined in FY25 and FY26, which we anticipate will be used to repay Rs 4bn in total loans, reducing interest costs and benefiting EPS. • Interest cost is projected to decrea

Century Plyboards India Ltd | Q4FY24 Result Update | Capacity expansion across all segments to drive growth CMP: Rs 656 | Target Price: Rs 764 | Upside: 17% | Rating: Buy Century Plyboards Ltd. (Century Ply), reported revenue for Q4FY24 was slightly higher than our estimates. While there was a beat on EBIDTA and PAT performance due to better than expected margin performance in plywood segment. There was revenue growth across all the segments of the company. EBIDTA margins in Q4FY24 was down YoY across all the segments except particle board. In Q4FY24 company reported sales growth of ~7% YoY in the plywood & allied product segment (~58% of Q4FY24 revenue) led by volume growth of ~7% YoY. Laminates, MDF and Particle Board segment reported YoY volume growth of ~5%/34/25% respectively. For FY24 company reported volume growth of ~6%/6.5%/19%/5% YoY in Plywood, Laminates, MDF and Particle Board segment respectively. In Q4FY24 company started commercial production of the greenfield Laminate and MDF unit in Andhra Pradesh setup by the company’s wholly owned subsidiary Century Panels. Capacity utilisation at both the new units of the company are gradually picking up. Expect to reach EBIDTA breakeven at both the units in H2FY25. For FY25 management has guided for sales growth of ~10%/20%/40%/25% YoY in Plywood, Laminates, MDF and Particle Board respectively. Further it expects EBIDTA margin in the range of ~12%-14% in Plywood, ~10%-12% in Laminates, ~15% in MDF and ~15% in Particle Board segment. Growth in all the segments except plywood will be driven by new capacities ramup. Company has taken a price increase of ~2% in Plywood from May 2024. We expect company’s Revenue/EBIDTA/PAT to grow at ~21%/29%/32% over FY24-FY26E on the back of capacity addition across all the segments. Q4FY24 Earnings Highlights • Century Ply’s consolidated revenue in Q4FY24 increased by ~10% YoY at ~Rs 10.6 bn. All business segment of the company reported YoY revenue growth. • Consolidated EBITDA margin was at ~12.9% down by ~403 bps YoY. • Consolidated PAT at ~Rs 795 mn declined by ~30.6% YoY due to a decline in EBIDTA and increase in depreciation and interest expenditure due to start of commercial production at greenfield laminate and MDF unit at Andhra Pradesh. Aggressive capex to drive growth across all segments FY24-FY26E Century Ply is undertaking various greenfield, brownfield and debottlenecking projects which will be mainly funded from internal accruals. Majority of the planned capex is being spent on high growth & higher margin segment of MDF and Particle Board. Outlook and Valuation We continue to value the stock at 30x FY26E EPS Rs. 25.5 to arrive at a target price of Rs. 764 per share and maintain our “Buy” rating.

Narayana Hrudayalaya Ltd | Q4FY24 Result Update | India business to drive strong growth CMP: Rs 1,237 | Target Price: Rs 1,558 | Upside: 26% | Rating: BUY Narayana Hrudayalaya (NARH) missed our estimate due to weaker-than-expected revenue from North India operations, compounded by the typically slow performance during this seasonal period. Gurugram transitioned from break-even to EBITDA positive, Mumbai also achieved positive single-digit EBITDA, and Dharamshila consistently posted double-digit growth quarter-over-quarter. Cayman business registered revenue growth of 3.4% YoY to Rs. 2.5 Bn. The group's overall occupancy rate is currently over 60%, with flagship facilities having higher-than-average occupancy. This rate is expected to grow gradually as different specialties and day care services are expanded, counterbalanced by addition of beds. Going ahead, we anticipate growth driven by a structural rebound in footfalls at flagship hospitals, where capacity optimizations are underway with improvement in case mix. We expect EBITDA CAGR of 26% from FY24 to FY26E driven by cost optimizations initiatives and improvement in occupancy. Due to strong performance in the India business, we maintain our EV/EBITDA multiple for the India segment at 22x. In the Cayman Islands, the operational oncology unit has initiated patient treatments, and an additional block is scheduled to be introduced in Q1FY25, contributing to sustained revenue growth in the future. On an overall basis, the growth prospects of Narayana look good. We maintain our BUY view with a target price of 1,558 per share. Decent performance in the quarter • In Q4FY24, India business reported revenue growth of 5.2% YoY and 8% QoQ to Rs. 10,352 Mn. The improvement was due to strong growth from Bangalore (+7% YoY), Southern Peripheral (+14% YoY) and Kolkata hospital (6% YoY) which was offset by slower growth in Northern regions (+3% YoY). • ARPOB for India business witnessed growth of 10.4% YoY and 5.6% QoQ to Rs. 40,822 with occupancy level of ~53%. However, we believe occupancy has witnessed improvement of 300 bps on YoY basis. • Cayman business recorded revenue of 3.4% YoY but was flat on sequential basis to Rs. 2,528 Mn. This was primarily due to a 5% sequential decline and an 18% YoY decline in ARPP. In Q4FY24, the ARPP for IP in Cayman was USD 29,100. • EBITDA margin for India business was 18.4% in Q4FY24 whereas Cayman had margins of 33%. Outlook and Valuation: We expect strong performance in both Cayman and India operations. We expect improvements in patient and case mix to drive an increase in EBITDA. The turnaround of previously loss-making facilities and the maturation of the newly established hospitals will be crucial for EBITDA growth. Additionally, a higher proportion of surgical cases and improvements in payor mix are set to further boost the overall growth. Due to healthy return ratios as compared to peers and steady growth in India business, we value India business at 22x and Cayman at 14x (EV/EBITDA with respect to FY26E EBITDA to arrive at a target price of Rs 1,558. Maintain Buy.

J.B.Chemicals and Pharmaceuticals Ltd | Initiating Coverage | In the Spotlight: Maximizing therapy dominance CMP: Rs 1,668 | Target Price: Rs 1,987 | Upside: 19% | Rating: BUY JB Chemicals and Pharmaceuticals Ltd (JBCP) is a rapidly growing mid-sized pharmaceutical company in India, focusing on expanding its domestic presence through strategic acquisitions and CDMO business scaling up. In India, JBCP's growth is accelerated by the market share gain and Rx increase in the acquired portfolio, successful lifecycle management of key brands, and increased contribution by domestic portfolio from 41.6% in FY18 to 54.4% in FY24. The recent Ophthalmology brands acquisition diversifies JBCP's India revenue base and solidifies its leadership in this therapy. The company places emphasis on its high-margin domestic business (we expect at 30% margins) and CDMO operations (we expect at 35% margins). In CDMO, 80% of revenue comes from Lozenges. JBCP is recognized as the preferred partner for leading MNCs and consumer healthcare companies globally in the field of Lozenges. By leveraging its strong presence in domestic markets and dedication to seizing emerging opportunities, along with strategic restructuring in the exports segment, JBCP is well-positioned to capitalize on immediate growth opportunities. We expect 25% EPS CAGR over FY24-26E aided by 1) Strong growth from domestic business (CAGR of 17% FY24-FY26E), 2) 32% growth over FY24-FY26E from new acquisitions, 3) scaling up of high margin CDMO business on the back of new therapy launches and 4) robust FCF generation. We assign a 24x EV/EBITDA on FY26E EBITDA (implied PE of 35x on FY26E EPS of Rs 56), arrive at a target price of Rs. 1,987 per share with a BUY rating on the stock. The domestic business is primed for growth- JBCP has consistently outperformed the Indian Pharmaceutical Market (IPM) by growing at 5-year CAGR of 23% as compared to the IPM's growth rate of 10%. This was mainly driven by higher contribution from chronic therapies (51% of domestic revenue), acquisition of new products and line-extensions through life cycle management. The company has therapy dominance in Cardio and Gastro, which is a high margin business and contributes ~60% to the domestic revenue. The company's emphasis on expanding its brand portfolio within existing therapies, rather than venturing into new ones, has significantly bolstered revenue growth for flagship brands. The Company’s biggest brand Cilacar franchise had sales of more than Rs. 6 Bn in FY24 (18% of sales). Going ahead, we expect domestic business (ex-Ophthal) to grow at a CAGR of 14% from FY24-FY26E on the back of increased volume growth aided by price hike. Diversifying the domestic portfolio- JBCP’s India business is currently concentrated in four primary therapeutic areas such as cardiac (41%), gastro (27%), antibiotic (8%) and Ophthal (8%). The top five brands: Cilacar, Cilacar-T, Metrogyl, Nicardia, and Rantac contributes ~65% to the domestic revenue. In a strategic move to broaden its revenue streams, the company has undertaken bolt-on acquisitions in Probiotics, Pediatrics, Statins, and Ophthalmology. Notably, the key brands from these acquisitions are already making significant strides in their respective markets. Through these strategic acquisitions, JBCP aims to diversify its product portfolio. The contribution of top 5 brands is declining from 75% FY22 to 60% in FY26E, thus de-risking the domestic portfolio. CDMO business to double in next 5 years- JBCP is amongst the top 5 player in the world for medicated and herbal lozenges. The CDMO business which contributes 12% to the total revenue has grown at CAGR of 17% over FY19-FY24 and has experienced 60% YoY growth in FY23 due to increased demand from existing customers. The company has a capacity to manufacture 2 Bn lozenges annually and is running at a utilization level of 55%. Due to healthy order book, new MNC clients, expansion into new geographies (ROW market),

Divi’s Laboratories Ltd | Q4FY24 Result Update | Synthesis: Ready to take off CMP: Rs 4,123 | Target Price: Rs 4,351 | Upside: 6% | Rating: Accumulate Divi’s lab result were above our estimates on all fronts due to higher-than-expected revenue from its synthesis business which resulted in expansion of EBITDA margins. Revenue witnessed growth of 18% YoY and 24% QoQ to Rs. 23,030 mn. The YoY increase was mainly driven by a significant 47% growth in the Custom Synthesis business, which offset a 6% decline in the generic business and was complemented by an 8% rise in the Nutraceuticals segment. Due to favourable product mix and softening of raw material prices the gross margin improved by ~322 bps YoY and ~13bps QoQ to 60.8%. The Custom Synthesis business is experiencing growth, especially with two major projects from prominent pharmaceutical companies transitioning into full-scale production. The contribution from synthesis is expected to notably increase from 45% in FY24 to 55% in FY26E. The EBITDA margins are expected to expand by 570 bps in FY26E to 34% due to 1) higher supplies of contrast media APIs, 2) starting of GLP-1 intermediate supplies, and 3) the ramp-up of the Kakinada facility post-commissioning, which offers approximately 25% incremental revenue potential. Custom Synthesis – For Q4FY24, Divi’s 89% of the revenue is from export business, where the export to regulated markets contributed 70% of the total export revenue. The custom synthesis segment, which is a high margin business, accounted for 51% of total revenue, witnessed growth of 47% YoY and 37% QoQ to Rs.11,745 mn. This segment is expected to witness CAGR growth of 37% from FY24-FY26E on the back of launch of two fast track projects and higher revenue from GLP-1 supplies (5% of FY25 revenue).The custom business segment is experiencing growth with multiple ongoing projects and new opportunities, especially in the peptide space. There's an increasing inquiry for phase 2 and phase 3 projects due to global shifts, including potential moves from China. Further, the company has entered into a long-term supply agreement with an MNC for an investment of Rs. 6500-7000 Mn for capacity addition which is expected to be operational by January 2027. All, these factors will lead to higher growth. Generic – The generic segment accounted for 41% of total revenue. Revenues degrew by 6% YoY but has seen growth of 10.8% QoQ to Rs 9,405 mn. The API business has witnessed pricing pressure in old molecules, however has witnessed strong volume growth. However, the pricing situation is expected to get normalize in 1-2 years. Strong growth is expected from peptide and sartans opportunities. We expect revenue CAGR of 12% from FY24-FY26E from this segment. Nutraceuticals – The growth in this segment has shown growth of 25% with revenue at Rs. 1,880 Mn. Margin – Favourable product mix led and low RM costs led to increase in gross margin by 322 bps YoY to 60.8%. The margins are expected to improve going forward as the synthesis business picks up. The company is also benefitting from softening of raw material prices. Valuation: Divi demonstrates exceptional skill in customizing synthesis processes for particular market segments, highlighting its expertise in bespoke synthesis. This strategic positioning allows Divi to effectively seize new opportunities arising from recently off-patent molecules. Additionally, the company is benefiting from decreasing raw material costs and increased revenue from its synthesis business, which is expected to further enhance profit margins. We value the stock based on SOTP valuation strategy and arrive at a target price of Rs. 4,351, offering limited upside now. Accumulate.