Brokerages Views: Citi On Bata, Page Industries; Nomura On HDFC Bank And More

Top brokerages from Citi to Nomura have taken interesting stock calls on a variety of sectors on Friday.

Citi Research maintained a 'sell' call for multiple companies, including Bata India Ltd., Page Industries Ltd. and Dabur India Ltd.

The benchmark equity indices snapped a two-day losing streak to close at a record high on Thursday amid gains in global markets after US Federal Reserve Chair Jerome Powell restored hopes of rate cuts this year.

The NSE Nifty 50 closed 80 points or 0.36% higher at 22,514.65 and the S&P BSE Sensex gained 350.81 points or 0.47% to end at 74,227.63 on Thursday.

We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Friday morning.

Citi On Bata

The brokerage reiterates 'sell' with a target price of Rs 1,000 per share.
It expects that the Q4 FY24 earnings may disappoint consumer discretionary and retail companies.
It expects Bata India to report 2% year-on-year revenue growth.
Expects Ebitda margin of 23.5%.
FY25/FY26 EPS estimates are below their estimates.

Citi On Page Industries

The brokerage reiterate 'sell' with a target price of Rs 31,300 per share.
Demand trend continues to remain muted and competitive intensity remaining elevated.
FY25 and FY26 EPS estimates are below consensus estimates.
For Q4FY24, Citi expects 6% revenue growth and 20% Ebitda margin.

Citi On Dabur

Reiterates 'sell' rating and revised their target price to Rs 500 per share from Rs 520 apiece earlier.
It expects Q4 FY24 trading update points to a weaker-than-expected performance.
Profitability is also below expectations they estimate Ebitda grew over 8% year-on-year.
Believes Q4 profitability was impacted by an inferior category mix.
Estimate Q4 salience of food and beverage segment in the domestic business has increased to 22-23%.
Forecasts over 6% consolidated revenue growth year-on-year to Rs 2,830 crore.
Expects gross margin to expand over 120 basis points year-on-year.
Forecasts Ebitda to grow over 8% year-on-year to Rs 440 crore.

Citi On Bajaj Finance

Citi retains 'buy' rating on Bajaj Finance. The brokerage has a target price of Rs 8,975, against the Thursday close of Rs 7,282.20.
Consolidated AUM sustained robust traction.
Bank borrowing would have become expensive, NIMs to have possibly declined.
Remedial measures on RBI action to be tracked.
Deposit accretion slower than Q1, Q2, Q3 FY24.

Citi IndusInd Bank

The brokerage re-iterates 'buy' on IndusInd Bank with a target price of Rs 2010 per share.
Deposit growth ahead of Citi estimates.
Retail deposits saw a one-time net outflow.
Deposit growth supported advances growth, and loan-deposit-ratio expanded to 89.1%.
Expect flattish net interest margins and credit cost in the guided range.

Citi On Aavas Financiers

Citi retains 'buy' rating on Aavas Financiers with a target price of Rs 1,830
AUM growth in line with Citi estimates, disbursement momentum scaled.
Forecast AUM growth of 24-25% in FY25-26E.
Declining trend in NIMs expected to be arrested.
Branch roll-out has picked up pace.

Jefferies On Bajaj Finance

Jefferies maintains 'buy' rating on Bajaj Finance with a target price of Rs 9,400 apiece. This implies an upside of 29%.
Bajaj Finance is a key top pick in NBFCs.
Pre-quarter update shows robust AUM growth, above estimate.
Growth in customer base is healthy.

Nomura On HDFC Bank

Nomura reiterate 'neutral' on HDFC Bank; with a target price of Rs 1,625 apiece, implying an upside of 6% upside.
Gross loan growth was soft at 1.6% quarter-on-quarter, lower than expectations.
Deposit growth strong in a seasonally strong quarter.
Rundown of low yielding corporate loans to aid NIM.

Emkay On Dabur India

Emkay Global Financial Services retains 'buy' on Dabur India with a target price of Rs 660 apiece. This implies a potential upside of 30.4%.
Sees domestic growth at 5%, with 7% growth in home and personal care, and 2% growth each in healthcare and food offerings.
Expect 10% revenue compound annual growth rate in FY25–26.
Gross margin will see 200 bps YoY increase to 47.8%.
Sees Q4FY24 Ebitda and earnings growth at 8% YoY.
Retains valuation at 46 times, anticipating demand improvement.

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