Jefferies Institutional Equities initiated coverage on Sagility India Ltd. with a positive outlook, citing its strong positioning in the US healthcare market.
Motilal Oswal Financial Services Ltd. maintained its optimism on Devyani International Ltd. despite near-term pressures in the quick-service restaurant space. Meanwhile, Citi Research outlined critical factors impacting city gas stocks, emphasising the need for tax reforms to sustain margins and competitiveness.
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 On Sagility
Jefferies initiated coverage with a 'buy' rating on the stock and a target price of Rs 52 apiece, implying a potential upside of 19% from the previous close.
Identified as a leading business process management firm, it is focused on the United States healthcare sector.
Anticipates the company to deliver double-digit growth.
Earnings per share growth expected to be driven by normalisation of depreciation and amortisation costs, alongside deleveraging.
Positioned to offer better growth than peers at similar valuation multiples.
Values the stock at 31 times price-to-earnings.
Motilal Oswal On Devyani International
Motilal Oswal retained a 'buy' rating on the stock and a target price of Rs 215 apiece, implying a potential upside of 26% from the previous close.
Notes subdued consumer sentiment in the near term due to high food inflation and intense competition.
Expects the company’s performance in the second half of fiscal 2025 to largely mirror the first half.
Predicts improved same-store sales growth for KFC and Pizza Hut in the second half, compared to the first.
Operating profitability likely to remain weak until underlying growth recovers.
Maintains a cautious stance on the quick-service restaurant sector.
Motilal Oswal On City Gas Stocks
Motilal Oswal retained a cautious view on city gas distribution companies.
Expects no inclusion of natural gas in the goods and services tax structure in the upcoming council meeting.
Highlights the importance of tax reforms for sustaining long-term margins and cost competitiveness.
Staggered price hikes for compressed natural gas seen as inevitable without tax relief.
Identifies Mahanagar Gas as the preferred pick due to its cheaper valuation compared to Indraprastha Gas.
Notes GAIL India could benefit from increased transmission, marketing, and petrochemical volumes, with a potential tariff hike in the fourth quarter of fiscal 2025.
Citi On Indian IT
Citi remains cautious on the Indian IT sector.
Guidance reflects deterioration in discretionary spending at the lower end and stable environments at the higher end.
Anticipates gradual and uneven recovery in the sector.
Prefers Infosys and HCL Technologies over peers, though both are rated neutral.
Nuvama On Indian IT
Nuvama maintains a positive stance on Indian IT companies.
Notes Accenture Plc's strong first-quarter fiscal ending August 2025 results and guidance upgrade as favourable for the sector.
Expects robust demand environment and sustained earnings growth opportunities driven by generative artificial intelligence over the next three years.
Nomura On Indian IT
Nomura retained a constructive outlook on large-cap IT companies.
Clients continue prioritising large-scale transformation projects.
Expects revenue growth for large-cap IT firms to improve in fiscal 2026.
Predicts that interest rate cuts starting September 2024 could aid decision-making by United States corporates, boosting demand.
Citi On Indian Banks
Citi remained optimistic on select Indian banks.
Prefers ICICI Bank and HDFC Bank due to confidence in asset quality.
Notes Kotak Mahindra Bank is optimistic about its growth outlook.
Flags risks for RBL Bank, citing pressure on return on assets due to elevated stress, net interest margin contraction, and growth slowdown.
Predicts Aavas Financiers to manage microfinance stress with strengthened collections, while Piramal Enterprises may benefit from alternative investment fund recoveries.
JM Financial On FirstCry
JM Financial initiates coverage with a 'buy' rating on the stock and a target price of Rs 692 apiece, implying a potential upside of 14% from the previous close.
Projects 20% revenue compound annual growth rate over fiscal ending March 2024 to March 2029.
Forecasts 51% growth in Ebitda over the same period.
Expects sharp margin expansion across segments driven by operating leverage.
Motilal Oswal On Anant Raj
Motilal Oswal initiates coverage with a 'buy' rating on the stock and a target price of Rs 1,000 apiece, implying a potential upside of 31% from the previous close.
Highlights the company’s foray into higher-margin cloud services as a profitability driver.
Expects real estate business pre-sales to grow at 23% compound annual growth rate through fiscal 2027.
Predicts net profit growth at 47% compound annual growth rate over the same period.
Nuvama Research On SRF
Nuvama Research retains a 'buy' rating on the stock and raises the target price to Rs 2,672 apiece from Rs 2,628 earlier, implying a potential upside of 17% from the previous close.
Expects specialty chemicals to expand at 20–25% compound annual growth rate over the next five years.
Highlights active ingredients as a growth driver for the specialty chemicals segment.
Trims Ebitda estimates for fiscals 2025 and 2026 by 2% and 3%, respectively.
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