Jeffries of Bandhan Bank
Downgrade from “Buy” to “Underperform”
TP price reduced from 290 rupees to 170 rupees
Founder and CEO’s resignation is a negative surprise
In a surprise move, Bandhan Bank’s founder and CEO resigned on July 9, even though the board had approved a three-year reappointment and the application was awaiting RBI approval.
The regulator has not clarified on such aspects, but the administration said that nothing has been announced by the RBI.
As with most senior management positions, a smooth handover is key.I’m new to the bank.
Uncertainty could lead to slower growth and higher credit costs
Given the uncertainty, the company expects to lower its growth outlook and credit cost estimates for FY25-26, reducing EPS by approximately 10-14%.
We also see valuations overhanging due to such uncertainty.
We refer here to a similar incident in RBL Bank where the CEO suddenly resigned, followed by the appointment of ED as interim CEO and finally an outside CEO.
Bandhan Bank ICICI Securities Department
Under review by ADD
Bandhan Bank’s rating and price target will be reconsidered until further clarity is provided.
The previous rating was ADD and the target price was 250 rupees, but it is on hold.
No clear management succession
The timing of Ghosh’s resignation came as a negative surprise, as the board had approved his reappointment for a three-year term in November 2023.
Since Mr. Ghosh is the founder and has been instrumental in the overall functioning of the bank, his departure could significantly change the business growth and profitability of the bank.
The two managing directors are fairly new to the bank, and the timing of their departures is disappointing as the bank remains under heightened stress on asset quality, despite several senior departures in recent years. I think so.
We believe that the future stock price may deviate from the underlying business and financial performance until the succession of MD and CEO becomes clearer.
GS on Bandhan BK
Purchase, TP Rs 267
CEO retires.Focus on growth and B/S as transition progresses
Discussions may arise among investors regarding a variety of topics, including:
1 Succession plan and announcement of new CEO
2 Impact of Leadership Change on Loan Growth and Profitability
JPM on Bandhan BK
OW, TP Rs 270
It was unexpectedly announced that Mr. Ghosh, the founder, current MD and CEO, will step down from his position on July 24th.
However, the timing is debatable.
There will be a lot of uncertainty given that the board must hire a new CEO by July
CITI on Wipro
Sales, TP Rs 440
Srini Pallia appointed as CEO and MD for 5 years from April 7, 2024
Investors will await strategic/organizational changes and clarity on capital allocation
Turnaround needs to be monitored in difficult macro environments
Wipro’s CLSA
Sales, TP Rs 445
The trend of changing CEOs every 4 to 5 years continues
Paglia’s candidacy looks promising, but there are challenges ahead
For new CEOs, strategy development should be simple, execution is key
I believe that the difficult task of rebuilding awaits the new CEO.
Wipro MS
US West, TP Rs 450
The CEO’s announcement came as a surprise to the market, given that the incumbent’s term is expected to last until July 2025.
We believe the transition may create uncertainty in the short term before raising hopes for a potential turnaround.
Jeffries on Wipro
Above, TP Rs 470
The resignation of MD and CEO, one year before the end of his term, along with several other senior-level departures, reflects ongoing execution issues.
Improvements in performance under the new CEO are likely to occur gradually.
IDFC First Bank Jeffries
Start buying, target Rs 100
The company has built a well-rounded platform, perhaps one of the most improved deposit franchises
Operational efficiency will be demonstrated from the second half of 2025
Robust growth in deposits over FY24-FY27 supports loan growth
Strong deposit growth should support 28% EPS CAGR even as credit costs rise
Improving RoA to 1.5% and RoE to 14% contributed to the re-evaluation
Lower interest rates should contribute more than peers
Ability to raise funds is key
MSc in Indian Banking
Underweight call, target Rs 125
Total loan growth continued to maintain healthy growth, increasing by 3.7% from the previous quarter and 13.6% from the previous year.
Domestic loans increased by 3.7%, 14% YoY
Foreign books increased by 3.4% from the previous quarter and nearly 11% from the previous year.
Deposit growth accelerated, driven by domestic deposits, up 4% quarter on quarter (up 1% in the previous quarter)
Domestic LDR eased by 1% QoQ to 78%
MS On Titan
Equal weight call, target Rs 3,290
Company reports improved sales growth in fourth quarter update, driven by 19% growth in India’s jewelery industry
Double-digit growth in both buyer and same-store sales in the jewelry sector
Watches – Sales increased 6% year over year after growing 21% in Q3
Eye Care revenue was down 1% year over year, down 4% in Q3, and up 5% at a 5Y-CAGR similar to Q3
Emerging businesses grew 24% year over year, and Caratlane’s revenue increased 30% year over year.
Titan’s CLSA
Buy call, target Rs 4,574
Standalone revenue increased 17% year over year (expected 11.2% increase)
Consensus forecast for standalone sales to increase 14%
The jewelery sector is expected to grow 18% year-on-year, slightly ahead of our expectations
Watches and wearables are expected to grow 6% y-o-y, while eye care is expected to contract 1% y-o-y.
Emerging businesses expected to grow 24% year over year
Caratlane is expected to report strong growth of 30%
The company added 76 new independent stores and 10 Carat Lane stores during the quarter.
GCPL MS
Equal weight call, target Rs 1,089
The company’s fourth-quarter results exceeded expectations on the top line.
The company’s fourth quarter results were driven by strong performance in India and Indonesia operations.
The launch of Goodknight Agarbatti has been well received by consumers, which is a big plus
Nigeria’s currency devaluation continues to impact overall growth
Mariko’s MS
Equal weight call, target Rs 533
Co’s fourth quarter results were roughly in line with Est.
The company achieved its previously stated goal of positive revenue growth in the fourth quarter.
The company achieved its previously stated FY24 profit margin and new business goals
Management expects revenue growth momentum to improve going forward
Marico’s CLSA
Sell call, target Rs 451
Fourth quarter update announced consolidated revenue growth in the low single digits
Our expectation for Cons Rev’s growth is top-line growth of 2.8%
Consolidated sales forecast is slightly lower than consensus forecast
The company expects a significant improvement in gross profit compared to the previous year
The company expects low double-digit gross margin growth in operating income.
Domestic business sales volume increased slightly
The company expects consolidated sales growth to trend upward over the coming quarters.
Kalyan Jewelers by HSBC
Buy call, target raised to Rs 500
Fourth quarter consolidated sales increased 34% year-on-year, driven by strong sales in India
10 new showrooms and 9 franchises opened in Q4
The total number of stores in India is 204. Scheduled to open 80 stores in 2025
Asset-light network expansion is paying off
nestle MS
Washington State, TP 1981 Rs.
The board of directors approved increasing the royalty rate paid to the parent company from the current 4.5% of net sales to 5.25% over five years.
This change will take effect from July 1, 2024 and will be phased in with an annual increase of 0.15bps.
Nomura about Cholafin
Price reduction, TP Rs 1000
4Q: Growth trend lower than expected
Growth and profitability will slow further
Q4 2024 AUM increased 35%/7% YoY (lower than expected 36%/9% YoY)
Overall spending in Q4 2024 was only up 17%/10% YoY (5% lower than expected).
Jeffries talks about Chola investment
Buy call, target Rs 1,400
The company’s spending rose 17% year-over-year in the fourth quarter, beating expectations by 4%
Auto loan payment growth slows to 6% y/y/4% qoq on high base in Q4
