HSBC initiates coverage on Swiggy with a 'hold' call, stating that growth and profitability of the company could be challenging due to the severe competitive intensity in the market.
Jefferies shared its outlook on the pharmaceutical sector. JPMorgan offers its take on the cement sector, and also continues to remain neutral on HDFC Bank Ltd. scrip. While, Nuvama is bullish on Zen Technologies 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 Friday.
Jefferies shared its outlook on the pharmaceutical sector. JPMorgan offers its take on the cement sector, and also continues to remain neutral on HDFC Bank Ltd. scrip. While, Nuvama is bullish on Zen Technologies 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 Friday.
HSBC On Swiggy
Initiate coverage with a 'hold' rating and a target price of Rs 550, implying a potential 6% upside.
Swiggy is a pioneer in both food delivery and quick commerce but has struggled to sustain its early mover advantage.
Catching up on both growth and profitability could be challenging due to the severe competitive intensity in the market.
For the financial years 2024-2027, expect Swiggy's food delivery business to grow at a CAGR of 16%, and its quick commerce segment to grow at around 65%.
Do not forecast Ebitda breakeven for the overall business before the financial year 2028.
Swiggy currently trades at a discount of approximately 35% to Zomato.
Better-than-expected execution and a valuation catch-up are key upside risks.
Jefferies On Pharmaceuticals
Contract development and manufacturing organisation stocks have surged 30–100% in the past six months.
Stocks surged on hopes of:
US biotech funding recovery.
Progress of the Biosecure Act.
The US Senate may address the Biosecure Act in December.
A strict passage of the Act is positive. However, a delay or dilution would be negative for CDMO stocks.
A strict Biosecure Act in the US may benefit Indian CDMOs by curbing US ties with Chinese firms like Wuxi.
If not passed, the bill will expire and face uncertainties under the next administration.
A slower uptick in biotech funding recovery poses risks for Indian vendors in the second half of fiscal 2025.
CDMO stocks like Divis, Syngene, Suven, Laurus, and Neuland may face high volatility in December.
JPMorgan On HDFC Bank
Maintained 'neutral' rating on the stock with a target price of Rs 1,750 per share, implying a potential downside of 6%.
Adverse macroeconomic conditions are favourable for HDFC Bank stock.
The stock has outperformed the market in the last three months.
Markets are currently making a safe-haven trade, where asset quality is more important than other factors.
Expects the risk-off trade to persist until the third quarter.
If system asset quality worsens, valuations could expand for the bank.
Prefers capital expenditure over consumption and state-owned enterprise banks like Punjab National Bank, Bank of Baroda, and State Bank of India.
Among private banks, JPMorgan prefers ICICI Banks and Kotak Mahindra Bank Ltd.
Nuvama On Zen Technologies
Maintained 'buy' rating with a target price of Rs 2,000 indicating a potential upside of 16%.
Signed a Memorandum of Understanding with Florida-based AVT Simulation to break into the US defence market.
This is strategically positive and will expand the serviceable market.
A pickup in order inflows during the second half of fiscal 2025 remains a key focus.
Watch out for the guidance of:
50% revenue compound annual growth rate.
35% operating margin.
25% profit after tax margin.
Goldman Sachs On Westlife Foodworld
Goldman Sachs maintains 'buy' rating with a target price of Rs 1,045.
Positive impact expected from menu interventions.
Soft base in the second half of the fiscal year to support same-store sales growth recovery.
Operating leverage set to improve as same-store sales growth recovers.
Expect same-store sales growth to turn mid-single-digit positive in the second half of fiscal year 2025.
Management confident of outperforming peers.
Gross margin impact in the second quarter was temporary.
JPMorgan On Cement Sector
Maintain overweight rating on UltraTech and ACC.
Target price of Rs 13,470 on UltraTech with a potential 13% upside, and a Rs 3,250 target price on ACC, indicating a 43% potential upside.
Key cement stocks have risen by 10-13% since Nov. 15.
Recent gains likely reflect rising expectations from the central government's capital expenditure.
Cement dealer checks suggest that pricing has moved marginally higher.
Cement companies are expected to deliver better quarter-on-quarter earnings.
Improved earnings are anticipated due to higher volumes and operating leverage.
Continue to prefer UltraTech Cement for growth and ACC for valuations.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
.png?rect=0%2C0%2C3500%2C1969&w=75)
Trent's Ambitious FY26 Growth Target Has Macquarie Skeptical, Nuvama Downgrades To 'Hold'
Jul 04, 2025
IndiaMart InterMesh Gets Its Highest Target Price As Nuvama Upgrades To 'Buy' On Growth Cycle Reboot
Jun 25, 2025
Stock Recommendations Today: Banks, Autos, Dr. Reddy's, Swiggy On Brokerages' Radar
Jun 20, 2025
RBI Seeks Market View On Borrowing Costs Post Debt Selloff
Jun 16, 2025
POPULAR