Antique Stock Broking has come out with quarterly review notes on a dozen companies including Hindustan Aeronautics Ltd (HAL), IRCON International Ltd, Steel Authority of India Ltd (SAIL), Honasa Consumer Ltd, MOIL Ltd, Prince Pipes and Fittings Ltd and Jubilant Foodworks Ltd, among others.
For HAL, it said Q3 results were a beat on all fronts and that supply chain normalisation would be a key monitorable. For IRCON International, it was yet another weak quarter, as per the brokerage. MOIL's lower than expected realisation impacted Q3 Ebitda, but is expected to improve with price hikes. For Honasa Consumer, Antique expects only a gradual recovery in general trade performance. For Prince Pipes, muted volumes and inventory losses eroded Q3 margin. Jubilant's strong performance in delivery channel continued. In the case of SAIL, lower realisation and higher cost hurt Q3 profitability. Below are the outlook and target prices for the seven stocks:
HAL Antique said GE holds the key for HAL to start delivering Tejas Mk-1A to the Indian Armed Forces and will be the key monitorable. Given the uncertainty with regards to engine supply normalisation, it cut estimates for FY26 and FY27 by 11 per cent and 17 per cent, as we factor in supply of 8 and 10 aircrafts for FY26 and FY27, respectively.
"HAL should deliver 11 per cent earnings CAGR over FY24-27E. Given the strong business outlook, we retain BUY rating with a revised target of Rs 4,887 (earlier Rs 5,902), valuing the company at 40x FY27E earnings," it said.
IRCON IRCON has received order inflows of Rs 1,700 crore YTDFY25 and its order book at Rs 21,900 crore at 2.1 times trailing 12-month revenue continued to provide visibility. But new project execution could take time to materialise as IRCON has guided for flattish revenue for FY26 over FY25.
"Post the result we have cut EPS estimates by 5 per cent/ 13 per cent/ 15 epr cent over FY25-27E and target is revised lower to Rs 152 (earlier Rs 205) valuing its core EPC at 25x PER (earlier at 30x). Panacea for execution is order wins and thus it remains the key catalyst for stock performance," it said.
Honasa Consumer Honasa Consumer's December quarter operational performance was subdued with revenue growth of 6 per cent while Ebitda declined 24 per cent due to weak profitability, impacted by ongoing restructuring of distribution in general trade.
Post its Q3 results and factoring in a gradual recovery in performance, Antique cut its earnings estimate by 10-52 per cent for FY25-27E. "There should be a gradual recovery in performance, hence we maintain HOLD rating with a revised target of INR 217 (previously Rs 370), based on 60 times PER on FY27 EPS," it said.
SAIL Steel Authority of India’s standalone Q3 revenue was broadly in line with estimates. . Flat product prices weakened sequentially while long prices improved in Q3. The management expects a recovery in prices sequentially. Antique maintained 'HOLD' rating, as volume growth prospects remain muted and deleveraging might be impacted given the large planned capex outlay on capacity expansion. It suggested a a fresh target price of Rs 118 from Rs 130 earlier based on a target multiple of 6.3 times FY27 EV/Ebitda.
Jubilant FoodWorks Antique said India Domino’s performance should witness a gradual recovery with an improvement in growth momentum in delivery channel and recovery in dine-in channel. Profitability improved sequentially with the improvement in ADS. The expected inflation in raw material prices would be mitigated through productivity improvement. It has increased its estimates by 5-9 per cent for FY25-27E based on strong performance in Domino’s.
"In our view, the optimism of recovery in performance is already built into our estimates and at current valuation JUBI offers limited upside. We maintain HOLD recommendation with a revised target of Rs 615 (previously Rs 584) based on 60 timers PER on FY27E EPS," it said.
Prince Pipes Prince Piples reported a volume decline of 3 per cent YoY in Q3, in line with estimates. The growth was impacted by industry-wide challenges of PVC price volatility, channel destocking, and low infrastructure spending. The 40,000 mtpa Bihar plant is expected to commercialize from 1QFY26 onwards.
The management guided for single digit/ double digit volume growth for FY25/FY26. Ebitda margin over the long term is expected to be maintained at 12 per cent.
"Considering lower margins, we cut our FY25/ 26 EPS estimate by 59 per cent/ 23 per cent and maintain FY27 estimates. Maintain BUY with an unchanged target of Rs 470 based on a PE multiple of 28 times FY27 EPS (5-year high/ low/ average of Rs 129 times/ 52 times/ 4 times)," Antique said.
MOIL MOIL's Q3 revenue was 4.3 per cent below Antique's estimates. Blended ore realisation was largely flat YoY but declined 7.1 per cent sequentially, impacted by mix deterioration and price cuts in manganese ore in November 2024, which offset the price hikes in October 2024 and December 2024. The profit after tax was below Antique's estimates.
Price hikes in January and February is seen aiding profitability, with Q4 being a seasonally stronger quarter for volumes. "We maintain BUY rating and a target of Rs 381 (earlier Rs 451) at a target multiple of 6 times FY27 EV/Ebitda," Antique said.