Brokerages have released reports on their expectations from the cement industry, with UltraTech Cement Ltd. being the top pick in the sector. Morgan Stanley evaluated the implications on HCL Technologies Ltd. expanding its relationship with Deutsche Apotheker, Germany’s largest cooperative primary bank.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Wednesday.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Wednesday.
Citi On Indian Cement Industry
Top pick: UltraTech Cement
Maintains 'buy' on ACC Ltd., Grasim Industries Ltd., Shree Cement Ltd., Dalmia Bharat Ltd.
Maintains 'neutral' on Ambuja Cements Ltd.
Maintains 'sell ' on the Ramco Cements Ltd., Nuvoco Vistas Corp, JK Cement.
Expect 146 MT of clinker-backed incremental supply during FY23–27
ACC, Ambuja, UltraTech, Shree Cement, Dalmia Bharat to account for 75% of incremental supply
Trend of market-share priority over pricing will continue.
Expects average Q1 realisations in the range of -4% to +1%.
Expects cement pricing trajectory to remain muted.
Motilal Oswal On Indian Cement Industry
Large-cap preferred picks: UltraTech.
Mid-cap picks: Dalmia Bharat, JK Cement.
Channel checks suggest price hikes of Rs 8–10 per bag across regions.
Expects cement volume to have grown in May versus muted April.
Volume growth of 5-6% MoM in May vs April
Domestic pet-coke prices have declined 6% MoM.
Expects demand momentum to improve.
Morgan Stanley On Inclusion Of Natural Gas Under GST
Inclusion to benefit the entire gas value chain from lower tax rates.
Key upside: Faster adoption of gas in India's primary energy.
Believes oil exploration and production companies to be the biggest beneficiaries.
Estimates 5% upside to ONGC's standalone earnings.
Expects 3–4% upside for Oil India Ltd.'s as investments/cost on gas production are compensated.
Expects Indraprastha Gas Ltd. and Gujarat Gas Ltd. to benefit from volume upside
Higher gas consumption, lower import costs to benefit GAIL (India) Ltd., Petronet LNG Ltd.
Morgan Stanley On HCLTech
Maintains 'overweight'; target price at Rs 1,650 apiece, implying a potential upside of 15.5%.
HCLTech has expanded its relationship with Deutsche Apotheker, Germany's largest cooperative primary bank.
Total estimated total contract value for this deal would be $278 million over 7.5 years. This implies an annual contract value of $37 million.
HCLTech has been working with this client since 2021 providing application services.
This should result in expansion in the relationship into infrastructure and cloud services and services around Avaloq implementation/
The announcement signifies continuing large-deal-win momentum in the financial services vertical in Q1 FY25.
Significant expansion of an existing client relationship beyond just application to cloud and infrastructure services.
There is absence of any signs of a pickup in discretionary spending.
Announcements of large deals provide incremental comfort on the ability of a company to achieve full-year revenue guidance.
Citi On Housing Financiers
Expansion of the PM Awas Yojana scheme to boost the supply of affordable housing.
Home First Finance Co's participation was active under PMAY-Credit Linked Subsidy Scheme
Benefits of the PMAY credit-linked subsidy scheme 35–40% of Home First's customer base.
Subsidy extension critical to improve financing demand visibility.
Home First helped 38,500 customers to claim PMAY subsidy and PMAY subsidy of Rs 9.7 billion.
Aavas has received subsidy of Rs 2.85 billion with 13,500 beneficiaries.
India Shelter has facilitated CLSS subsidy of Rs 473 million to 2,100 beneficiaries.
UBS On India Industrial & Infrastructure
Expects policy initiatives to continue, leading to sustained growth momentum.
Focused themes include defence manufacturing, electrification, mobility and industrial efficiency
Expects 19%/18%/18% CAGR in order/topline/Ebitda across coverage universe over FY24–28.
Peak industrial valuations leave little room for disappointment on order growth/margins.
Top pick pecking order: CG Power and Industrial Solutions Ltd.,
Hindustan Aeronautics Ltd. and ABB India Ltd.
Nuvama on Tata Motors' Investor Day
Retains 'reduce' with target price of Rs 940 apiece, implying a potential downside of 4%
Slightly raised Ebitda estimate by 2% for the current fiscal, factoring in better realisation/margin.
The Ebitda estimate for the next fiscal stays unchanged.
Building in moderate revenue/Ebitda CAGR of 9%/13% over fiscal 2024–26 versus 21%/25% over fiscal 2021–24.
CV volumes can witness moderation in FY25, and can grow in the medium term.
PV volumes to grow in single digits in FY25.
CV Ebitda margin to stay in double digits, PV margin to rise from 7% in FY24 to over 10% by FY30.
Emkay on Tata Motors Investor Day
Upgrades to 'add' from 'reduce'; target price raised to Rs 1,050 from Rs 950 apiece, implying a potential upside of 6% from the previous close.
Domestic CV industry absorbed various past disturbances, with growth outlook improving on favourable macros.
Company expects 4–5% industry volume CAGR over FY24–29.
Expansion in the total addressable market to 80% by FY30 versus 53% now.
EVs to form 30% of the portfolio by FY30.
Targets profitability improvement, with double-digit margin in the combined PV and EV business by FY30.
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