InCred Equities has initiated coverage on Adani Power Ltd., bullish on the company's position as the country's largest private thermal independent power producer.
Jindal Stainless Ltd. has a better balance sheet compared to Indian carbon steel players, according to Jefferies as it initiated a 'buy' call on the stock. Meanwhile, Bank of America has identified nine structural growth themes in India.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Thursday.
InCred On Adani Power
Initiated 'add' rating with a target price of Rs 649.
Adani Power is a pure play in the thermal power space and India’s largest private thermal independent power producer.
The company is staging a turnaround with a 13.12 GW expansion project to meet surging demand.
Deleveraging is underway with an 11% Ebitda compound annual growth rate.
Approximately 87% of capacity is tied to long-term power purchase agreements with fuel cost pass-through clauses.
Around 17% of sales volume comes from merchant power, capitalising on high-margin opportunities.
Jefferies On Jindal Stainless
Initiated 'buy' rating with a target price of Rs 800.
Jindal Stainless is a leader in India's fast-growing stainless steel market.
The company benefits from lower Ebitda per ton volatility and a better balance sheet compared to Indian carbon steel players.
China's stainless steel conversion spread is at a 10-year low, and any expansion could boost margins.
Expected to deliver 10% volume and 21% earnings per share compound annual growth rate with 17% return on equity over fiscals 2025-27.
Trading at 11 times enterprise value to Ebitda for the financial year 2026, reasonable given a 25% premium over carbon steel globally.
BofA On India Strategy
Identifies nine structural growth themes in India: rapid infrastructure build-out, productivity gains, digitisation, financialisation, household savings resilience, discretionary consumption shift, formalisation, current account shift from deficit to potential surplus, and decarbonisation.
India ranks as the top country globally for providing a high number of stock compounders, a trend expected to continue.
Caution on near-term market upside due to full valuations and risks from slowing global growth.
Maintains year-end Nifty target at 25,000 given the recent rally.
UBS On Cummins India
Maintained 'sell' rating with a target price of Rs 2,700.
Exports remained stable sequentially in the quarter ended March.
A miss in topline suggests that the best of the earnings upcycle is behind the company.
JPMorgan On Steel Authority of India
Maintained 'neutral' rating with a target price of Rs 112.
The quarter ended March showed a healthy earnings beat as sales volume growth momentum continued.
Debt declined 12% quarter-on-quarter, and the debt to trailing 12 months Ebitda ratio improved sharply to 3.31 times versus 4.42 times in the previous quarter.
JPMorgan will monitor current inventory levels during the upcoming earnings call.
Nomura On Sansera Engineering
Maintained 'buy' rating and cut target price to Rs 1,643 from Rs 1,669.
Growth trajectory expected to step up, led by the non-automotive business.
Margins for the quarter ended March were in line with estimates.
Diversification is expected to pick up pace across automotive diesel systems and AL forging segments.
Sansera could deliver a strong 36% earnings per share compound annual growth rate over the financial years 2025-27.
Positive outlook on the net cash balance sheet and the company’s ability to address newer segments.
Macquarie On IRCTC
Maintained 'outperform' rating with a target price of Rs 900.
The quarter ended March showed a beat, supported by a boost from spiritual tourism.
The company is expected to continue a low teens growth outlook alongside strong free cash flow margin of 30% and return on invested capital of 30%.
Upside optionality comes from a high share of air-conditioned rail supply, spiritual tourism packages, and modernisation of railway platforms.
Morgan Stanley On Dr Agarwal’s Healthcare
Maintained 'overweight' rating with a target price of Rs 502.
The quarter ended March was good overall.
Earnings before interest, taxes, depreciation and amortisation margin declined mainly due to higher personnel costs.
Employee stock ownership plan costs and initial public offering expenses also impacted the quarter.
From UBS Conference
PB Fintech
Maintained 'sell' rating with a target price of Rs 1,640.
Management guidance remains unchanged and renewals growth is expected to boost profitability.
Savings growth is slower than expected, while health and term insurance growth remains strong.
Paisabazaar plans to expand product offerings.
PB Healthcare will operate as a separate entity.
Axis Bank
Maintained 'neutral' rating with a target price of Rs 1,300.
Growth potential is slightly better with improved liquidity.
Margin guidance is maintained at around 3.8% over the medium term, with downward pressure expected in the near term.
Early trends in asset quality are stable to improving, but a decline in credit costs is unlikely soon.
Jefferies On Entero Health
Downgraded rating to 'neutral' from 'buy' and cut target price to Rs 1,320 from Rs 1,650.
Growth for Entero Health has slipped below expectations.
The quarter ended March results missed estimates, and guidance for the financial year 2026 is lower than expected.
Even with announced acquisitions, FY26 guidance remains below expectations.
Lower revenue growth and a weaker margin profile have driven earnings per share cuts of 15-20%.
Jefferies On Bandhan Bank
Maintained 'buy' rating with a target price of Rs 195.
Watchful of asset quality trends in the near term.
Lowering the share of microfinance institution loans to 35% over the next two years.
Targeting a return on assets of 1.4-1.5% in fiscal 2026, improving to 1.8-1.9% by fiscal 2028.
Believes the bank has de-risked its microfinance loans better than peers.
The transition to a lower microfinance loan mix is expected to be positive and a manageable reset on return on assets.
Citi On State Bank of India
From Citi’s Pan-Asia Conference:
SBI has built capabilities to generate through-the-cycle return on assets of 1% and return on equity of 15%.
The recent equity raise is aimed at confidence capital rather than growth capital.
The bank endeavors to maintain net interest margins at the quarter ended March level in the medium term, although some initial pressure is likely.
SBI is shedding bulk deposits, reducing high-cost borrowings, and cutting deposit rates to offset margin pressure.
Credit growth is above system average and nominal gross domestic product growth.
Growth drivers include micro, small and medium enterprises, mid-sized corporates, and a pickup in Xpress Credit.
Deposit growth guidance is 10-11%, with efforts to maintain current account savings account ratio at 40%.
Credit costs are expected to behave better than peers, with SBI guiding for 50 basis points over the cycle.
The bank aims to reduce and manage cost-to-income ratio below 50% by optimising costs and focusing on income growth.
Fee income is expected to mirror balance-sheet growth.
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