Emkay initiated coverage on Anant Raj Ltd. with a 'buy' call, citing a rise in the share of cloud-based services expected to boost the company's profitability. UBS comments on Hindustan Unilever Ltd., Tata Motors Ltd., Petronet LNG Ltd.
Jefferies shares outlook on the cement sector and states its top picks, while Nuvama remains bullish on Adani Ports and Special Economic Zone Ltd. Investec and Morgan Stanley give their calls on RBL Bank.
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 Monday.
Jefferies shares outlook on the cement sector and states its top picks, while Nuvama remains bullish on Adani Ports and Special Economic Zone Ltd. Investec and Morgan Stanley give their calls on RBL Bank.
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 Monday.
Jefferies On Cement Prices And Demand
Top picks remain UltraTech Cement and JK Cement.
Cement prices were flattish on a monthly basis in November 2024.
Prices need a 2-3% or Rs 9-10 per bag hike every month to meet estimates.
Cement prices have bottomed out, and the industry is targeting a Rs 10-15 per bag hike every month.
Demand growth moderately improved in October-November 2024.
Demand is expected to continue in the fourth quarter due to government capital expenditure revival.
Industry volumes are expected to grow 8-10% year-on-year in the second half of the fiscal.
Emkay On Anant Raj
Emkay initiated coverage on Anant Raj with a 'buy' rating and a target price of Rs 925, implying a 37% upside.
Ebitda and profit after tax of the data center business are expected to rise to Rs 650 crore and Rs 300 crore, respectively, by the financial year 2027, compared to nil currently.
Good launch visibility due to a low-cost land bank, with scope to add more.
Land bank is expected to drive bookings and collections at a compound annual growth rate of 18% and 39% over the financial years 2024-27.
Rs 2,000 crore fundraise to support a sharp ramp-up of the data center business.
Availability of land and civil structures gives the company an edge to expand data center capacity.
Rise in the share of cloud-based services is expected to boost profitability.
UBS On Hindustan Unilever
Maintained 'neutral' rating and cut the target price to Rs 2,800 from Rs 2,950 per share, implying a 12% upside.
Cut earnings per share estimates for the financial years 2025-27 by 3-7%.
Lower volumes expected amid weakening urban demand.
Margin pressure anticipated due to the rise in commodity prices.
UBS On Tata Motors
Retained 'sell' rating with a target price of Rs 780, implying a 1% downside.
Global automotive companies, including premium brands, face downside earnings risk in calendar year 2025.
Downside risks are driven by geopolitical tensions and a weak demand environment.
German carmakers have indicated further margin compression in calendar year 2025.
Do not foresee Chinese electric vehicle penetration posing a risk in Europe and the USA.
Global light vehicle production is forecasted to decline by 2% in calendar year 2024, with a 1% rise in calendar year 2025.
Jaguar Land Rover's second half of calendar year 2025 guidance is quite contrary to that of other carmakers.
JLR's all-EV strategy is considered risky, given setbacks faced by companies like Porsche and Volvo.
Goldman Sachs On Hindustan Unilever
Rates 'neutral' with a target price of Rs 2,775, implying an 11% upside.
Expects Hindustan Unilever Limited's earnings growth to lag behind peers.
HUL’s slower growth is attributed to increased competition in the beauty care segment and initiatives in the health food drinks segment, including distribution and low price points, yet to show a revival.
Investec On RBL Bank
Reiterated 'hold' rating with a target price of Rs 170, implying a 10% upside.
Expects credit growth to moderate by 200 basis points to 13-14% year-on-year in the financial year 2025.
Net interest income is expected to decline.
Growth is likely to revive in the second half of the financial year 2026.
Remains cautious on large exposure to microfinance institutions and the corporate credit verticals.
Morgan Stanley On RBL Bank
Remains 'underweight' with a price target of Rs 180, implying a 16% upside.
No impact expected on existing co-branded credit card customers.
Earnings outlook is tough, with challenges anticipated in the microfinance institutions segment.
Return on equity is expected to remain below the cost of equity.
While valuations are cheap, the stock does not look attractive.
HSBC On Titagarh Rail System
Maintained 'buy' rating with a revised target price of Rs 1,425, down from Rs 1,980 apiece, implying a 16.1% upside.
Values Titagarh using a one-year forward price-to-earnings ratio of 35 times, down from 45 times, previously.
Execution of existing metro and Vande Bharat orders has been slower than expected, leading to a reduction in estimates.
Cut target price by 28% due to lowered estimates and a revised valuation multiple.
The valuation cut reflects slow growth in Indian Railways' freight volume.
Remain positive on the high earnings visibility in the financial year.
HSBC On Cable And Wire OEMs
Maintained 'buy' rating on Polycab.
Maintained 'hold' rating on KEI and RR Kabel.
Higher cables exposure has resulted in impressive share price returns in calendar year 2024.
Expects margin improvement in calendar year 2025, driven by the wires business.
Expects double-digit volume growth for the industry in calendar year 2025.
Capacity is likely to outpace demand growth over the next 2-3 years.
Pricing pressure is unlikely over the next couple of years.
UBS On Petronet LNG
UBS upgraded Petronet LNG to 'buy' from 'neutral', with a target price of Rs 400, implying a 19% upside.
Valuations are currently inexpensive, at a 15% discount to the 10-year historical average.
The company could cater to about 50% of India's incremental LNG imports.
Petronet LNG is expected to benefit from the Dahej terminal expansion and improved pipeline connectivity.
Delays in the commissioning and ramp-up of competitive terminals are expected to benefit the company.
Capex plans are likely to have limited impact on the company’s dividend payout.
Nuvama On Adani Ports
Maintained 'buy' with a target price of Rs 1,960, indicating a 63.3% upside.
Reiterated guidance of handling 1 billion tons by 2030.
Revenue and Ebitda are expected to grow at a compound annual growth rate of 20% and 18%, respectively, from the financial year 2024 to 2029.
The logistics business is expected to be a key growth driver.
Logistics revenue and Ebitda are expected to grow at a CAGR of 46% and 48%, respectively, over fiscals 2024-29.
Net debt to Ebitda improved from 3.3 times in fiscal 2021 to 2 times in the first half of the financial year 2025.
Cumulative operating cash flow of Rs 1.3 lakh crore in FY24-29 will cover capital expenditures and debt repayments.
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