HSIE Results Daily: Sun Pharmaceutical Industries, LG Electronics India, Max Healthcare Institute, Aurobindo Pharma, Prestige Estates, The Ramco Cements, TTK Prestige, Ashoka Buildcon, Repco Home Finance

HDFC Securities

Sun Pharmaceutical Industries: EBITDA grew 3% YoY despite 13% sales growth (US: -4% QoQ; global specialty: +20% YoY; India: +15% YoY) and higher gross margin (+118 bps), which was offset by higher costs (staff/SG&A/R&D, up +19/20/23%). The company provided guidance of high-single-digit revenue growth in FY27 and R&D to remain at 6-7% of sales. It expects sustained growth momentum in the specialty business, led by traction in key products (led by Ilumya, Cequa, and Winlevi), scale-up of Leqselvi (deuruxolitinib), and Unloxcyt (launched in Jan-26; focus on onboarding new patients, improving market access, and overall market formation). The company is hopeful on its innovative pipeline: (1) Ilumya: ANDA filed for psoriasis arthritis indication (goal date in Oct-26) and launched in newer markets, (2) GL0034 (Type 2 diabetics): Phase 2b trails are expected to complete in 12-18 months and topline data expected in H3CY27, (3) Fibromun: Phase 3 started for soft tissue sarcoma, and (4) MM-II: Looking to enter partnership for commercialization in advanced markets and it will be launch in EMs Sun's own network. It expects to see steady growth in the India formulation business and its launch of Semaglutide (GLP-1) to see gradual scale-up over the next few quarters; oral solid form completed clinical studies and waiting for approval in India. US generics business recovery depends on its key plant clearance (Halol, Baska, and Mohali). The progress on Organon acquisition is largely on track and expected to get complete by Q4FY27.. Factoring in FY26 performance and FY27 guidance, we have tweaked FY26/27E EPS. We retain BUY and TP of INR 2,120 (32x FY28E EPS). We expect the scale-up in specialty (traction in Ilumya, Winlevi, Cequa, and Leqselvi) and the India business (new launches, in-licensing) to offset the soft US generics business.

LG Electronics India: LG's revenue grew by 8% YoY to INR 80.5bn. Home appliances division (81% revenue mix) grew 6% YoY, while home entertainment division grew strongly by 20% YoY (19% revenue mix), led by heightened demand for televisions during the World Cup. EBITDA margin declined 230bps YoY to 11.7% (up 670bps QoQ), leading to EBITDA/APAT decline of 10/8% YoY. For FY27, the company is targeting mid-teen revenue growth with early double-digit EBITDA margin. Management expects margin expansion to be driven by greater supply chain localization, a growing export contribution, and a higher premium product mix. Demand trends in April and May have been encouraging. The company continues to maintain leadership across key product categories and has implemented calibrated price increases across product categories to offset increased input costs. Factoring in the in-line Q4 performance, we broadly maintain our revenue estimates. However, considering the inflationary cost environment, we cut our APAT estimates by 6/2% for FY27/28E. We retain ADD but with a lower target price of INR 1,455/share, based on 38x Mar'28E EPS.

Max Healthcare Institute: EBITDA^ grew 8% YoY, with 9% YoY sales growth (hospital sales up 9% and Max Labs up 13%). ARPOB grew 1% YoY, and occupancy was at 75% (vs. 75% YoY). The planned bed capacity expansion is largely on track, and it expects growth to improve with break-even over the next 12-18 months. It expects margin to be steady for brownfield hospitals (cost synergies) for the next couple of years. With focus on execution of new bed addition, it expects steady performance in the near term. The company had an impact of ~INR 2bn due to reimbursement restriction for high-valued chemotherapy-related drugs (like Keytruda; CGHS's 30% MRP discount mandate) for the institutional patient (IPD Oncology share came down by ~500 bps to 21% from 26%). Moreover, it expects the CGHS price revision benefits to start reflecting from Q4FY26 (of ~INR 2 bn revenue). We believe the company is on track with its capex plan to add over 3,000 beds between FY26 and FY28 (~2,100 brownfield and 900 greenfield beds). The aggressive expansion plans underpin our revenue and EBITDA CAGRs of 21% and 23% over FY26-28E, with steady EBITDA margin at ~26.5% in FY28E (~26.7% in FY27). Factoring in FY26 performance and integration of Kalinga Hospital, we have cut our EBITDA for FY27/28E by 3/2% and revised SoTP of INR 1,140 (29x FY28E EV/EBITDA). ADD stays.

Aurobindo Pharma: EBITDA declined 5% YoY, which was in line of our/consensus estimates, as sales increased 6% YoY (US -8 QoQ; EU up 30% YoY) and GM improved by 154bps YoY, though this was offset by a 18/21% YoY rise in staff costs/SG&A. Excluding gRevlimid, sales grew 9.5% YoY in FY26 and 15.3% YoY in Q4. ARBP indicates (1) base business in the US will sustain momentum in the coming years by sustaining quarter sales run rate at ~USD 400mn, with steady US OSD business (at USD 1bn) through new launches, improvements in injectables, and normalization of Eugia-3 plant supplies; its mid-term aspiration is to reach USD 2bn on sales (including Lanette), (2) strong growth in the EU, led by geographical/product expansion and support from scale-up in China plant, with improved EBITDA (at ~20% and to inch-up in FY27/28E); (3) ramp-up in its Pen-G/ 6-APA plant helped to improve supply chain efficiencies - the company targets 10k MT in FY27 to support the margin (captive) and external sales (from 6-APA; support from MIP); (4) to sustain EBITDA margins at ~21% in FY27, with operating leverage and backward integration supporting margins in subsequent years; (5) scaling up the biosimilar business, with four launches in the EU and stronger traction expected from FY27 and inflection point in FY29 (meaningful contribution); (6) Lannett acquisition will complement the US OSD business growth; we have not factored in our estimated as transaction is excepted to complete in the near term; and (7) CDMO business: Unit 1 with capacity of ~60KL to be commissioned by FY27-end; validation batches will be in CY27 and it expects stock-piling in CY28; additionally, greenfield plant to be commissioned in CY29 and commercial supplies from CY31. Factoring in the FY27 outlook, M&As, and buy back, we have raised FY27/28E EPS by 3/5% and revised the TP to INR 1,570 (18x FY28E). ADD stays, led by improvements in the US base business, steady EU growth, ramp-up in Pen-G/ China/US plants, and biosimilar scale-up, all likely to drive steady mid-to-long-term growth.

Prestige Estates: Prestige Estates (PEPL) registered quarterly presales; by value INR 76.9bn presales (+10.6%/+84.0% YoY/QoQ) and by volume at 5.3msf (+18.9%/+78.6% YoY/QoQ). For FY27, PEPL has guided for 15-20% growth in presales and collections, backed by a INR 580bn launch pipeline across 24 projects, while maintaining a conservative stance despite visible upside potential. In Q4FY26, PEPL added a GDV of INR 108.5bn, taking the FY26 new BD GDV to INR 514bn across Bengaluru, Hyderabad, Mumbai, and Chennai, which marks its full-year BD guidance. The massive step-up in commercial exit rentals between FY27 (INR 10,374 mn) and FY28 (INR 34bn) is largely attributable to the commissioning of Prestige 101 BKC (X & Y blocks, combined ~4.77 msf PEPL share) in FY28, which alone would represent the single largest addition to the commercial annuity portfolio. We believe PEPL has superior growth prospects for the residential portfolio and multi-fold annuity growth; hence, we maintain BUY, with TP of INR 1,775/sh.

The Ramco Cements: We retain SELL on The Ramco Cements (TRCL) with a lower TP of INR 830/share (12x FY28E consolidated EBITDA). In Q4FY26, TRCL reported subdued ~5% YoY. Unit EBITDA too remained weak at INR 667/MT (+64/58 per MT YoY/QoQ). The slow pace of capex and continued non-core asset monetization (INR 11bn in FY25-26) aided reduction of net debt to EBITDA ratio to 2.54x in Mar-26 (vs 3.6x YoY). We expect consolidated volume/EBITDA to grow at 7/14% CAGR over FY26-28E and expect capex to accelerate FY28E onwards as TRCL focusses on greenfield expansion in Karnataka.

TTK Prestige: TTK Prestige's (TTKPT) revenue grew by 12% YoY to INR 7.3bn, primarily led by strong performance in appliances, which grew 20% YoY (45% revenue mix). Appliances delivered strong performance, driven by a shift toward induction and electric cooking appliances amid LPG supply constraints. Cookers and cookware registered 7% and 5% YoY growth (28% and 15% revenue mix). EBITDAM expanded 130bps YoY to 9.2% leading EBITDA/APAT growth of 30/27% YoY. Management highlighted that rising commodity prices remain a key headwind, although calibrated price hikes have been undertaken to mitigate the impact. It also noted that the strong momentum seen in Q4FY26 has continued into the current year. The company aims to maintain growth while keeping margins stable. Factoring in the Q4 performance, we broadly maintain our revenue estimates. However, considering commodity inflation, we cut our APAT estimates by 5-6% for FY27/28E. We maintain REDUCE with a lower TP of INR 540/sh by valuing the company at 30x Mar-28 EPS.

Ashoka Buildcon: Ashoka Buildcon's (ASBL) standalone revenue/EBITDA/APAT came in at INR 17.7/1.2/0.6bn, a miss of 16.9/35.7/32.8% vs. our estimates on account of muted execution. ASBL guides for 20% revenue growth and 9.5-10.5% EBITDA margin in FY27 . The OB as of Mar'26 stood at INR 153bn (~2.63x FY26 revenue). Further, ASBL guided OI of INR 80-100bn for FY27 (earlier: `INR 110-120bn), with a bid pipeline of INR 400bn. Business-wise, the revenue is well-diversified with HAM (roads)/EPC (roads)/power T&D/railways and others comprising 10/50/18/8/10% respectively. Additionally, ASBL has already invested INR 6.1bn in the current HAM portfolio; the balance equity requirement in its existing NHAI HAM assets is INR 3.25bn as of Mar'26 (INR 1,750/750/750mn to be invested by FY27/28/29). Given the diversification to power T&D, improved balance sheet on the back of deleveraging through HAM monetization (10 assets in FY26), and stable OB, we maintain BUY with a reduced TP of INR 183/sh (11x Mar-28E EPS). We have cut estimates to factor in the ordering delay and margins.

Repco Home Finance: REPCO's Q4FY26 earnings were ahead of our estimates, largely due to muted credit costs (-29bps) and lower tax rate. Disbursements continued to grow at a strong pace for fourth consecutive quarter (+22% YoY; 26% YoY for FY26), with ~21% growth guidance for FY27 by management. New initiatives such as customer sourcing diversification, revamped employee incentives and tech transformation have aided disbursements growth, which had remained subdued in the past. However, AUM growth continues to be sub-10% due to higher run-off rates and remains a key monitorable for meaningful re-rating. We revise our FY27E/FY28E earnings estimates to factor in lower credit costs offset by lower other income; maintain ADD with a revised RI-based TP of INR580 (implying 0.8x Mar-28 ABVPS).

Source : Equity Bulls

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