Hindustan Aeronautics Ltd., infrastructure, pharmaceuticals and cement stocks will be in focus, as brokerages have altered their views on stocks in the sector.
UBS retained a 'buy' rating on HAL with a target price of Rs 5,700 apiece, implying a potential upside of 22% from the previous close. Jefferies sees the cement industry attempting price hikes in the next two months.
Meanwhile, Morgan Stanley said that India's current bull market has become the longest in history.
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.
UBS On Hindustan Aeronautics
Retained a 'buy' rating on the stock with a target price of Rs 5,700 apiece, implying a potential upside of 22% from the previous close.
Reports that HAL has received an order for Su-30 MKI aircraft worth Rs 13,500 crore, which is part of the fiscal year ending March 2025 pipeline of orders.
Year-to-date, HAL has secured orders totaling Rs 40,000 crore.
Expects defence orders to be concentrated in the fourth quarter of the fiscal.
Highlights HAL as its top pick in the defence sector.
Nuvama On Infrastructure
NHAI and MoRTH awarded 773 km of projects in November 2024.
Road construction rose 9% YoY and 16% MoM to 841 km in November.
Road awarding slowed in Q1 fiscal 2025 due to elections.
Year-to-date fiscal 2025 road capex down 12% YoY at ~Rs 1.5 lakh crore.
Trend likely to continue as the government focuses on NHAI debt reduction.
Intense competition for road projects remains a concern.
Questions road developers' ability to win sufficient orders at good margins.
Jefferies On India 2025 Outlook
Overweight on banks, telecom, two-wheelers, healthcare, real estate, IT, and power.
Sets a December 2025 Nifty target of 26,600, implying a 10% total return.
Expects 13% earnings per share growth in fiscal 2026/calendar year 2025.
Sees the investment upcycle continuing for 4-5 more years.
Notes strong domestic flows, but increased equity supply may limit market returns.
Top picks: ICICI Bank Ltd., Axis Bank Ltd., State Bank of India, Bharti Airtel Ltd., JSW Energy Ltd., TVS Motor Co., Coal India Ltd., Godrej Properties Ltd., Sun Pharmaceutical Industries Ltd.
Overweight on banks remains the highest-conviction idea.
Favours large caps over small- and mid-caps.
Predicts rate cuts by the Reserve Bank of India (~50 basis points) as inflation cools.
Jefferies On Cement
Dealers report improved industry discipline; recent Rs 8-12 per bag price hikes are holding in some regions.
Industry likely to attempt further price hikes in December 2024 and January 2025.
Meeting full-year volume targets amid better demand could impact price recovery.
Fiscal 2025 estimates depend on December price hikes sustaining.
Expects 5-6% year-on-year decline in cement prices in fiscal 2025, remaining flat for fiscal 2026 and 2027.
Moderate demand growth expected to recover in Q4, with government capex revival.
Projects 8-10% annual volume growth in the second half of fiscal 2025.
Jefferies On India Pharmaceuticals
Biosecure Act uncertain after exclusion from NDAA; revival under new administration unclear.
Chinese CDMOs cut US pharma costs, reducing Biosecure Act's chances.
Indian CDMOs see niche opportunities as pharma diversifies supply chains.
RFQ execution critical for Indian CDMOs over the next 12 months.
Success depends on cost efficiency, supply stability, and FDA compliance.
Indian CDMOs face challenges in biologics due to high complexity.
Morgan Stanley On India's Bull Run
India's current bull market becomes the longest in history.
The "aging" bull market has more potential than widely believed.
It surpasses the 2003-08 bull market in length, but with only a third of its cumulative return.
Performs significantly better relative to emerging markets than all previous bull markets.
Previous bull markets ended at a higher multiple, suggesting room for further growth.
Sees substantial upside to return on equity and a longer earnings growth cycle.
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