HSIE Results Daily - May 26, 2026 - Oil India, Sundaram Finance, JK Cement, Century Plyboards India

Oil India: Our BUY recommendation on Oil India with a revised target price of INR639 is premised on (1) oil and gas production growth at 3% CAGR over FY26-28E and (2) higher crude oil price realization. Q4FY26 standalone EBITDA at INR18.21 bn (-8.2% YoY, +39.1% QoQ) and APAT at INR17.9bn (+12.4% YoY, +121.4% QoQ) were above our estimates, owing to higher-than-expected realization and other income. Oil and gas sales volume was 0.870mmt (+2.6 YoY, +2.6% QoQ) while natural gas sales were 0.602BCM (-9.5%YoY, -8.8% QoQ).

Sundaram Finance: Sundaram Finance (SUF) reported yet another steady operating performance, with healthy growth in NII and AUM. Business momentum remained steady, with disbursements growth of 17% YoY, driven by the core M&HCV segment. Asset quality improved sequentially, driven by improving credit environment. SUF's product/geographic diversification strategy, along with industry tailwinds, has aided in driving healthy AUM/disbursements CAGR of 19%/25% during FY22-FY26, along with robust profitability. However, global uncertainties could provide downside risk to our AUM and credit costs estimates during FY27-FY28E. We have revised FY27E/FY28E earnings estimates to reflect higher opex and maintain ADD with a revised SoTP-based TP of INR4,835 (standalone entity at 3.3x Mar-28 ABVPS; 15% discount to CIFC).

JK Cement: We maintain BUY on JK Cement with a revised TP of INR 5,950/sh (15x Mar-28E consolidated EBITDA). JKCE continues to deliver industry-leading volume growth, healthy margin, and fast-paced prudent expansions. In Q4FY26, JKCE's consolidated volume rose 13% YoY (grey +13%, white/putty: +13/9%). However, consolidated EBITDA fell 11% YoY on account of lower incentives and high opex in the grey cement (large expansion impact) and continued competitive pressure in the white/putty segment. Blended margin stood at INR 1,006/MT (+INR 74 QoQ, -INR 262 YoY). It delivered 16/17% volume/EBITDA growth in FY26 and we estimate volume/EBITDA CAGRs of 12/21% during FY26-28E.

Century Plyboards India: Century's revenue grew 25% YoY to INR 14.9bn, led by strong growth in MDF segment (up 32% YoY), ply segment (up 19% YoY), laminates segment (up 16% YoY), and particle board (up 108% YoY). EBITDAM expanded 66bps YoY to 11.9%, leading to 32/49% YoY growth in EBITDA/APAT. Company indicated channel stocking in Mar'26 drove a strong Q4FY26 performance. Management refrained from providing FY27 guidance amid raw material inflation and uncertainties owing to the Middle East tensions but highlighted a strong start to the year, with April marking the best-ever monthly performance and momentum expected to continue. The company has undertaken price hikes across categories to offset higher raw material costs. Factoring in a strong Q4 performance, we increase our revenue estimates by 2% each for FY27/28E. Considering the inflationary cost environment, we have cut our APAT estimate for FY27E by 5%, while broadly maintaining that for FY28E. We maintain BUY and value the company using SOTP-ex-particle board business at 40x Mar-28E EPS and the particle board business at 2x capital employed in Mar-28E, to arrive at TP of INR 910/sh.

Source : Equity Bulls

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HDFCSecurities ResultsDaily ResultUpdate OilIndia SundaramFinance JKCement CenturyPlyboardsIndia