Brokerage Views: Jefferies On Godrej Properties, Motilal Oswal On MCX And More

Top brokerages, from Citi Research to Motilal Oswal Financial Services Ltd., have taken various stock calls on different stocks and sectors, with the latter rating Kolte-Patil Developers Ltd. with a 'buy', while CLSA has upgraded Vedanta Ltd. to 'buy' from 'underperform' and raised the target price as the mining company is well-placed to benefit from commodity upcycle.

NDTV Profit is tracking what the brokerages are putting out on specific stocks. Here are all the top calls by the brokerages that you need to know about on Wednesday.

CLSA On Vedanta

CLSA upgrades Vedanta to 'buy' from 'underperform', with target price raised to Rs 390 apiece from Rs 260 apiece earlier.
Well-placed to benefit from commodity upcycle.
Capacity increase, profitability, capex programme augurs well.
Guided for group-level Ebitda to rise from $5 billion to $6 billion in FY25 and $7.5 billion in FY26.
Debt at parent level has declined meaningfully.
Raise blended EV/Ebitda from 5x to 5.5x, earlier average 7x shows rerating potential.

Citi on India Autos And Auto Parts

Margins and profits will be determined by operating leverage.
Commodity costs are expected to remain steady.
Quarterly trends are positive for personal vehicles and consumer vehicles, and negative for two-wheeler and tractors.
Watching out for plans in the current financial year, new launches in personal vehicles and electric vehicles along with rural/urban trends.
Awaiting EV plans with commentary on Production Linked Incentive and FAME 2 ending.
Maruti Suzuki India Ltd. top pick among original equipment manufacturers with a target price of Rs 14,200 per share, implying a potential upside of 10% from the previous closing.
Endurance Technologies Ltd. is among the top parts makers with a target price of Rs 2,300 apiece, implying a potential upside of 21% upside from the previous closing.

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Motilal Oswal On Kolte-Patil Developers

The brokerage initiates coverage with a 'buy' rating and a target price of Rs 700 per share, implying a potential upside of 35% from the previous close.
The company delivered 26 million sq ft of space in the last three decades and now has 43 million sq ft under development.
Balance sheet strengthened to net cash in December.
Strong pipeline and balance-sheet strength to push growth.
Risks include the inability to add new projects and slowing demand.

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Motilal Oswal On MCX

Motilal upgrades MCX to 'buy', with a target price Rs 4,300 apiece, implying an upside of 15%.
Looking to grow volumes driven by new products.
New products and variations to existing ones to be the key drivers.
Interoperability of margins between the exchanges to provide further stimulus.
Retail participation has significant headroom for growth.
FPI participation to improve.
Software transition to aid operations and costs
Expect MCX to deliver a revenue/Ebitda/PAT CAGR of 28%/205%/157% over FY24-26

Jefferies On Godrej Properties

Jefferies maintains 'buy' on Godrej Properties with price target raised to Rs 3,175 apiece from Rs 2,700 apiece earlier, implying 17.3% upside.
FY24 pre-sales of Rs 22,500 crore was highest among listed developers.
Believes FY25 can see growth over high base with Hyderabad entry.
FY25/26E pre-sales estimates raised by 25%/19% respectively.
Expect P&L margins to scale towards 15-18% over next 3-4 years.
Net gearing to stay upper end of its 0.5-1 times guidance on large project acquisition.

Kotak Institutional Equities On Dixon Technologies

Kotak Institutional Equities retains 'sell' on Dixon Technologies (India) Ltd. and increases fair by 13% to Rs 5,200.
Dixon's acquisition of Ismartu to further drive market-share gains.
Recent tie-ups with Ismartu and Compal have potential to increase exports share over the medium term.
Potential tie-up with BBK Group remains the next big catalyst for Dixon's mobile segment.
Raises mobile segment estimate on expanding share in mobile segment.
Sector View: Cautious

Nomura On Alkem Laboratories

Rated 'neutral' with a target price of Rs 5,605 apiece, implying a potential upside of 14.6%.
Received Form 483 issued to Alkem post US FDA inspection at company's Baddi formulation site in March.
Company expects two–three product launches over the next 12–18 months from Baddi.

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Morgan Stanley On Prestige Estates Projects

Residential segment is d at 25 times the price to earnings, which compares well with the long-term average.
Expects pre-sales to record a 33% compound annual growth rate over fiscal 2023–26.
Risks to upside include steady pace of new launches, scaling up in non-Bengaluru markets and rental growth.
Slowdown in the IT industry, slow new launches and delay in execution of ongoing projects may be downside risks.

Morgan Stanley On Godrej Properties

Price target is derived by valuing the residential business at 25 times the P/E.
For fiscals 24 and 2025, pre-sales are estimated to grow 60% and 20% year-on-year respectively.
Aggressive new-project acquisition and steep price increases are likely upside risks.
Delay in new launches, slow execution of ongoing projects and weak sales velocity are downside risks.

Morgan Stanley On DLF

It s the residential business by applying a 30-time P/E multiple.
Faster monetisation of unsold inventory and new-project additions will act as upside risks.
Slow sales momentum amid ongoing sluggishness in the National Capital Region markets and slow pace of land bank monetisation can be downside risks.