*Tech Mah Review*
*GS*
Neutral, TP Rs 979
Cut FY23-26E EPS estimates by up to 6% due to lower margins to a/c for 1QFY23
EBIT margin at 11.0% missed GSe est at 11.6% due to which EBIT missed GSe by c.2%.
*Macquarie*
O-P, TP Rs 1620
Revenue beat; EBIT margin miss of 241bp
Management said they expect to deliver 100-150bp of margin improvement in each of remaining quarters of FY23.
*Jefferies*
Hold, TP Rs 1070
1Q rev growth of 3.5% QoQ slightly ahead, but margins fell sharply by 220bps QoQ
Deal wins at $ 802m healthy
Margin delivery weak & management commentary of 14% exit margin in FY23 & 14%+ margins in FY24 seems optimistic.
*Bernstein*
O-P, TP cut to Rs 1210 from Rs 1410
Q1: Good growth. Margin disappoints
Cut FY23 /FY24 EPS estimates to factor in sharp miss in EBIT Margins
Valuations attractive, trading at 15x NTM P/E.
*Tata Steel Review*
*Macquarie*
O-P, TP Rs 1670
Consol EBITDA beat– EU surprises +vely
While EU EBITDA/ton surprised +vely, as lagged impact of a steel price hike was reflected during qtr, expecting profitability to decline in 2H FY23 given a recent correction of EU steel prices.
*JPM*
OW, TP Rs 1400
Substantial all around beat driven by Europe
While 2Q seasonally weak, 2H should rebound
Upside risks to consensus
Large 1Q beat with Europe EBITDA/t at $365/t
Steel prices bottomed in India & Lower coking coal to drive earnings rebound in 2H.
*Axis BK Review*
*Macquarie*
Neutral, TP Rs 790
Earnings beat of 14% vis à vis our ests driven by lower credit costs.
Margins, loan and deposit growth and cost ratios lag peers
Lower margins than peers cap ROA upside.
*MS*
OW, TP Rs 910
F1Q23 PAT 13% above MSe, helped by higher than expected rev
Costs elevated but lower provisions provided offset
Core PPoP 4% above MSe
Retail term deposit growth, however, relatively muted – expect pickup by H2-F23
RoE of 16% by F25 stays.
*JPM*
Neutral, TP cut to Rs 780 from Rs 880
Loan growth disappoints with 1% q/q decline; Retail does better, corporate slower
NIM improvement guidance maintained
ROAs at 1.4% remain 60bps lower vs larger peers, which could remain a drag on vals.