Eicher Motors, Star Health, Petronet LNG, Gujarat Gas, Prestige Estate And More Q2 Review: HDFC Securities

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Eicher Motors Ltd. – Royal Enfield posted lower-than-expected margin in Q2 (down 60 basis points QoQ), led by an adverse mix. RE targets to launch multiple new products over the next 18-24 months, which would provide an upgrade option to its existing customers. The recently-launched Hunter has been very well-accepted by customers and it seems to be attracting newer customers to RE, including women bikers.

Star Health and Allied Insurance Company Ltd. – Star Health printed a soft net earned premium growth at 16% YoY (down 3% versus estimate), primarily on the back of unwinding of the high claims-ratio group business.

Petronet LNG Ltd. – Q2 reported Ebitda was at Rs 12 billion (down 10% YoY, up 10% QoQ), while profit after tax came in at Rs 7 billion (down 10% YoY, up 6% QoQ), above our estimates, due to lower-than-expected other expenses. Volumes came below estimates at 192 trillion British thermal unit (down 20% YoY).

Gujarat Gas Ltd. – Q2 FY23 Ebitda/profit after tax at Rs 6.4/4 billion came in marginally above our estimate, owing to higher-than expected gross spread. Volume declined sharply by 33% YoY, 22% QoQ, owing to the shutdown of ceramic units at Morbi in August 2022.

Prestige Estates Projects Ltd. – Prestige Estates registered presales of Rs 35 billion (up 66%/up 17% YoY/QoQ). With this, H1 FY23 presales come to Rs 65 billion, the highest-ever H1 sales.

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