ET Now: Your first ideas on Ashok Leyland numbers We have seen that commercial vehicle players are doing very well, in the case of Tata Motors, in which the margin remains stable for their CV segment. What are you that you’re pencing for Ashock Leyland and on your first numbers, a little margin improvement, but overall you believe that most are positive prices?
Sunny Agarwal: Yes, definitely, if you look at the margin number, at least the OPT will look a little better than the street estimate, but eventually what the street will see is growth guidance for FY 26. Therefore, we believe that the second part of the financial year 26 is the time where it is at a lower base and due to this increase in government pressure on the capex side, we can see a very healthy recovery in terms of volumes as long as there is some medium and heavy business vehicles. And at the same time, we want to hear Ashok Leyland’s comment on the bus division. So, in their end, their EV bus department, is sitting on a very good order book, so what progress is there and in terms of execution. At the current market price, most positivity is already at prices and overall our estimate is that earnings growth can be 12% to 13% CGR over the next two years, so we can see the growth of mid-discharged type of earnings as far as Ashok Leyland is concerned. Overall, most often, it looks in the line set of numbers, at least a little better than expected on the margin front.
ET now: Given that we end up the fag of the earnings season, where is it or you are positive surprises and where is the biggest missed?
Sunny Agarwal: Yes, so on earnings, there was a kind of mixed bag in the fields. Therefore, within the banking again, some of the banks have a good set of good sets, in line sets of Point ICICI Bank, HDFC Bank, Kotak Reporting Number while banks like Axis Bank have registered a small number of analysts. Cement and metals, at least, both of these fields we have found that the disappointment of earnings is behind us, and again for both of these packs, there is at least one gradual improvement in terms of profitability for both of these packs that the input cost is falling down and at the same time an outlike in the realization. Therefore, both of these segments, cement, as well as metal, continue to report good sets, we expect that these two packs will report good pace until earning growth during the first half FY26. Now, proceeding to the Auto toe, again Auto toe was a kind of mixed bag, so we have seen Mahindra and Mahindra on one side or a good number of good number for that matter. On the other hand, inside the two-wheeler pack, the TVS motor has registered a good set of number while the hero was disappointed with the choice of MotoCorp. So, again, mixed bags until the auto sector is concerned. Moving on to consumption, within re -consumption we have seen a kind of vague volume growth as long as the customer’s main businesses are. But inside it, Marico stood stood with a 6% volume growth number. And on the consumer discreet side, we have seen the right set of numbers from the jewelry pack, while the value retail segment continues to report a healthy SSG growth. The QSR has seen a proper growth, despite the fact that we have seen a proper growth, despite the out of a strong quarter of the December season, however, we have seen a suitable quarter until the number of March. So, again, the sum I want to do is that it was a kind of mixed bag as long as it is about earning growth. So, if I try to classify between the midcap, the smallcap and the larga, we have seen a very good set of numbers from many MIDCap and smallcap companies and there we are looking that the pace of growth will continue for the next two years. Therefore, the market is finally rewarding companies that are especially reporting a good set of numbers from midcap and smallcap packs.
ET Now: What is your vote on a metal pack because I believe it is another straight week where metal counters are brightly shine, though JSW steel numbers are waiting, but any pockets inside the metal pack that you feel good.
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Sunny Agarwal: Therefore, inside the metal pack, we continue to be creative on the non-ferrous pack, so companies like Nalco have registered a solid set of earnings with a strong growth point of view, so we find a risk-pure favorable until we are related to the aluminum pack. Steel pack as previously discussed, so the whole steel pack is the worst behind. Therefore, due to this security duty, the NSR, net sales relationships are likely to proceed and at least steel players with gentle input costs will increase profitability as long as it is about EBitda per ton. Therefore, we also remain bull, creative on the steel pack. And if someone wants to ride the stainless steel side, we think it can ride the story despite the manganese, so it is a matter of manganese prices until we think this kind of bottoming has gone out. Therefore, companies like Moil and Sandur Manganese want to have a high risk, high-compulsory condition of a person, so it’s something we are booming.
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