Brokerage Views: Citi On Delhivery, Vodaone Idea, HSBC On Sun Pharma And More

Citi Research maintains its rating on Delhivery Ltd. and Vodafone Idea Ltd. After the announcement of the retail inflation data, the research firm said that the RBI Monetary Policy Committee might want to wait for better clarity on monsoon before a rate action. UBS Research maintains a 'buy' rating on the Indian Hotels Co. and revised the target price to Rs 715 apiece.

NDTV Profit is tracking what the brokerages are putting out on specific stocks. Here are all the top calls by the brokerages that you need to know about on Monday.

Citi Research On Delhivery

The brokerage opened an upside 90-day catalyst watch on Delhivery.
It expects over 330 bps year-on-year improvement in adjusted Ebitda margins to 3.6%.
Expects 11% YoY in volumes and partial truckload volumes to be strong.
Expects e-commerce/PTL yields to be decent albeit e-commerce yields to be seasonally lower.
Expects mid-mile tonnage carried on Delhivery's network to be flattish quarter-on-quarter.
Beyond Q4, expects Delhivery to report a stronger margin trajectory.
Delhivery well positioned to benefit from any uptick in industry e-commerce volumes in the second half of 2024.

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HSBC On Sun Pharmaceutical

HSBC Global Research retains 'buy' on Sun Pharmaceutical Industries Ltd., with an unchanged target price of Rs 1,790 apiece, implying a potential upside of 16.2% from the previous close.
Expects its US generic sales (excluding gRevlimid) to remain range-bound on FDA issues.
Specialty sales remain key for earnings growth, offsetting challenges in US generics.
Expects limited earnings impact after the US Food and Drug Administration has classified its Dadra facility as official action indicated.

Citi Research on March CPI

Continues to expect stance change in June and first rate cut in October.
Retains headline inflation forecast at 4.5% year-on-year for FY25 with food inflation key upside risk to watch.
RBI Monetary Policy Committee might want to wait for better clarity on monsoon before a rate action.
No signs of pickup in core CPI inflation.
Cut in fuel prices contributed 14 bps to the decline in CPI.
Vegetable CPI remains elevated due to supply pressure.
Food, except vegetable inflation, remains stable due to offsetting moves in underlying components.

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Citi On Vodafone Idea

Citi maintains 'neutral' rating on Vodafone Idea.
Narrow gap with peers on 4G coverage and 5G rollout.
Potential tariff hikes, relief in adjusted gross revenue to boost cash-flow position.
Expects cash shortfall from the second half of fiscal 2026.
Uncertainties on future repayments as well as equity dilution.
Fundraise to drive further upside for Indus Towers as well

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UBS On Indian Hotels

UBS maintains 'buy' on Indian Hotels. The research firm has revised the target price to Rs 715 from Rs 500, implying a potential upside of 17.8%.
The market is still underappreciating the company's operating leverage.
Expects Ebitda accelerating faster than revenue at 24% compound annual growth rate from fiscal 2024–26.
Earnings forecast raised by 8%/9% for fiscal 2025/26 on better average room rates.
Sees current re-rating as sustainable with earnings upgrades.

BofA Securities On India Telecom

Vodafone Idea's majority of FPO proceeds to be spent towards capital expenditure.
Promoter holding is likely to fall to 38% vs 50.3% now.
Indus Towers is a beneficiary of rollout plans.
Sensitivity analysis indicates a 15–18% earnings per share.
Will remain watchful for subscriber share momentum at Bharti/Jio and stance on capex investments.

BofA Securities On Indian Pharmaceuticals

US FDA news flow can't be ignored, with negative outcomes for Sun Pharmaceutical Industries Ltd. and concerns on observations from recent inspection.
Key events include Eugia Unit-3 outcome, inspection of Cipla Ltd.'s facilities for key approval.
Has a 'buy' call on Dr Reddy's Laboratories Ltd., Aurobindo Pharma Ltd and Gland Pharma Ltd.

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