Q3 results point to the trend; consolidation will continue, say analysts
Margins could improve further on operating leverage and cost optimisation
Q3 performance was better than estimates led by growth across verticals
Street will also keep an eye on margins as marketing costs start to impact profitability
Falling input prices, cost cuts to improve margins
This should reverse the US underperformance in FY15-20 with margins too moving up sharply
Margins too surprised positively on higher offshoring and utilisation
A 56 per cent stock uptick since December caps upside
Higher content share in BS-VI, two-wheeler electric vehicles offer incremental opportunities
While double-digit growth in FY22 is a given, near term margins could come under pressure
Margin pressures and valuations would limit major upsides
Upsides could be capped in the near term on margin pressures
Supply issues, higher raw material costs are headwinds
Sharp re-rating has turned the stock into the most expensive in the pharma space
Higher earnings growth, lower costs, and valuations favour smaller companies
Company attributes achievement to sharp focus on motorcycles, strategies of differentiation and practice of TPM combined with global ambitions
Analysts have revised their growth guidance for FY22
Valuations, however, are factoring in near-term benefits of growth and consolidation
Price hikes to offset some of the the surge in raw material costs
Valuations, however, are factoring near term gains