Motilal Oswal offers its outlook on the Oil & Gas sector, with its top picks being Hindustan Petroleum Corp., Gail (India) Ltd., and Oil India Ltd.
Citi initiated coverage on Trent Ltd., and remains bullish on UltraTech Cement Ltd.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Thursday.
Citi initiated coverage on Trent Ltd., and remains bullish on UltraTech Cement Ltd.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Thursday.
Citi On Trent
Initiated coverage with a 'buy' rating on the stock with a target price at Rs 9,250, implying a potential upside of 21.5%.
Trent at higher revenue CAGR versus India's leading listed retail companies.
Growth on shift from single-format to multi-format, category model.
Jump in fiscal 2025 estimates defying weak consumer sentiment.
Value standalone Ebitda at 65 times the EV/Ebitda ratio.
Believe 20% valuation premiums are justified given strong revenue and Ebitda CAGRs of 41% and 44% respectively.
Company on top of Citi's India consumer discretionary and retail pecking order.
Citi On Gail (India)
Maintains 'buy' on Gail (India) with a target price of Rs 260, implying a potential upside of 15.4%.
Opens 90 Day Positive Catalyst Watch on the stock.
New tariffs filed with PNGRB to lead to higher tariffs.
Second quarter volumes to be as moderate as expected.
On track to deliver fiscal 2025 volume guidance of 130+ million metric standard cubic meters per day.
Believe company can surpass minimum Rs 4,500 crore Ebit guidance in year ended March 2025.
Other positives include gas being brought under GST and restructuring of CGD investments.
Citi On UltraTech Cement
The brokerage maintains a 'buy' rating on the stock with a target price of Rs 13,000, indicating a potential upside of 10.3%.
Management Meet Takeaways:
Industry is at the cusp of reversing fortunes.
Pent-up demand suggests fairly strong industry outlook.
Cement prices on uptrend since latter part of Aug 2024.
Heavy monsoons to lead to flattish demand in the second quarter.
Company expects all India cement demand growth at 8% in fiscal 2025.
Expects demand growth to surpass supply growth.
Expects 30-35 MTPA capacity addition over next two years.
Motilal Oswal On Oil & Gas
Preferred oil marketing company pick is HPCL, and maintain 'buy' on the stock at a target price of Rs 400, indicating a 10.5% potential upside.
Maintain 'buy' on GAIL at Rs 275 target price with a potential 22% upside, and Oil India at Rs 740 target price with a 27.9% potential upside.
Maintain 'buy' rating on ONGC, Oil India despite oil price-related risks.
Expect limited downside in refining margins for OMCs.
Marketing margin outlook remains robust; OMC profitability likely to remain strong.
Expect oil prices of $75 per barrel of crude oil in financial years 2025 and 2026.
UBS On Hero MotoCorp
UBS maintains 'sell' on Hero MotoCorp with a target price of Rs 3,350 per share target, implying a 44.8% downside from pervious close.
A 20% stock rally since the first quarter of fiscal 2025 was seen on expected strong wholesale volumes.
September wholesale volumes expected at six lakh units versus three lakh retail volumes.
Full year retail volume growth lagging behind peers despite strong festive season claims.
Company significantly underperforming industry volume growth as per Vahan.
High retail market share loss despite launches.
Emkay On Hero MotoCorp
Emkay maintained 'buy' and raised the target price to Rs 7,000 per share, implying a 15% upside from the previous close.
Two-wheelers continue to recover with double-digit wholesale and retail growth.
Expect the company's positioning to improve on gains from Xtreme 125R, improved dispatches, upcoming festive/marriage season.
Believes market share loss in now likely behind, recovery to commence.
Expects 50 bps improvement in domestic motorcycle market share over fiscal 2024-27
The 24 times price-to-earnings ratio remains favourable given the 17% core EPC CAGR.
Sees room for potential re-rating from successful product launch.
Nomura On HDFC Bank
The brokerage maintains 'Neutral' with a target price of Rs 1,720 per share, downside of 3% from the previous close.
Quotes NDTV Profit report on HDFC Bank selling down 60,000-70,000 crore of loans.
Sell-downs likely to accelerate LDR resolution but impact loan-to-deposit Ratio but affect earnings per share and return on equity.
HDFC Banks sell-down could be ~30-35% of the securitisation loan market in fiscal 2025.
ROE improvement to be gradual and to come at cost of loan growth.
See limited upside with two times June 26 book value.
Top Picks: ICICI Bank Ltd., Kotak Bank Ltd., State of India, Federal Bank Ltd.
Bernstein On PB Fintech
The brokerage maintained an 'outperform' rating with a target of Rs 1,720 per share.
PB FinTech is talking about backward integration with hospitals.
The founder seems convinced this is the way forward, and working towards this.
Likely plan to provide hospital bed inventory to customers in the Delhi-NCR region.
If it works, PB could become (much) more dominant in the health insurance distribution market.
The company has $650 million on balance sheet to build this model.
Some may look at the backward integration as a meaningful shift from its capital-light business model.
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