IndusInd Bank, Senco Gold, Dabur India, Equitas SFB: MOFSL reacts to Q1 updates

MOFSL has come out with short notes on a handful of companies such as Senco Gold, Dabur India, Equitas Small Finance Bank (Equitas SFB) and IndusInd Bank, among others, post their June quarter business updates. Here's what the brokerages said on future prospects for the companies and things to watch going ahead.  

IndusInd Bank: MOFSL said IndusInd Bank's overall business performance remained weak and broadly in line with its expectations. Both advances and deposits declined by approximately 3 per cent QoQ, keeping the CD ratio largely stable. Greater clarity on the appointment of the new CEO and the strategic direction under their leadership will be crucial for enhancing visibility on the bank’s growth prospects and overall strategy, the brokerage said as it remained 'Neutral on the stock.

IndusInd Bank reported a 3.1 per cent QoQ decline in net advances, due to a sharp decline in corporate banking, which fell 6.2 per cent QoQ. The consumer business declined 0.9 per cent QoQ. Overall, the decline in advances was largely in line with MOFSL's estimate of a 2.8 per cent QoQ decrease.

Deposits also declined by 3.3 per cent QoQ (down 0.3% YoY), while deposits from retail and small business customers remained largely flat. 

Senco Gold: The jeweller reported 28 per cent YoY growth in total revenue. Retail revenue was up 24 per cent YoY, and same-store sales growth (SSSG) stood at 19 per cent. The company launched nine new showrooms in 1QFY26. MOFSL said the company is on track to achieve its annual target of 20 showroom launches.

MOFSL said 2Q typically witnesses softer demand due to the absence of major festivals and weddings; however, the early monsoon and a 106 per cent rainfall forecast provide some optimism. The focus for 2Q includes inventory optimization, promoting festive collections like Raksha Bandhan and Onam, and driving growth in diamond and lightweight jewelry.

"Gold price volatility and festivals like Raksha Bandhan and Onam are expected to drive consumer trends. Demand is shifting toward lower karatage, with growing traction in the 14K and 18K segments. The industry is also exploring 9K jewelry," it said while suggesting 'Neutral' with a target of Rs 400 on the stock. 

Dabur India: MOFSL said Dabur India's consolidated revenue may grow in low single digits, and that the operating profit growth may lag the revenue growth. It maintained 'Buy' on the stock post Q1 business updates.

"On account of a decline in beverages, Dabur's consolidated revenue is expected to grow in low-single digits (1 per cent in 4QFY25; 7 per cent in 1QFY25). Consolidated operating profit growth is expected to marginally lag revenue growth," MOFSL said.
Dabur's Home and Personal Care (HPC) division is expected to perform well,
driven by the oral, home and skin care categories. The beverage portfolio was impacted by unseasonal rains and a short summer. 

Equitas SFB: MOFSL said Equitas Small Finance's MFI book declined sharply even as the deposit growth was steady. Net slippage ratio increases in MFI segment, it said while retaining its 'Buy' rating on the stock. 

"X bucket collection efficiency (CE) in the MFI portfolio remained largely stable overall and improved in Karnataka, where it had declined in 4QFY25. Slippages and credit costs for secured advances are expected to remain within normal levels," MOFSL said.

The bank reported gross advance growth of 9.1 per cent YoY. The share of the Non-MFI portfolio has increased to 89.7 per cent of total advances, growing 18.06 per cent YoY. The bank has consciously slowed its MFI book, which declined 13.5 per cent 34.4 per cent YoY, MOFSL said.