Citi sees margins as a positive surprise in Torrent Pharma Ltd. during the quarter ended March, and forecasts that the expansion trend will continue.
The brokerage is also bullish on Hindalco Industries Ltd., citing stronger aluminum performance and debt reduction as key positives. However, it has a 'sell' call on Zydus Lifesciences Ltd., post the company's guidance of a contraction of 300-400 basis points in margins as compared to the same period last year.
Morgan Stanley believes India's fundamentals remain strong, supported by macro stability, improving terms of trade, declining primary deficit, and low inflation volatility. JPMorgan states that foreign investors are rushing back into the country, while domestic funds continue to maintain confidence.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Wednesday.
On Torrent Pharma
Citi
Maintain Buy rating with a target price of Rs 4,000.
The quarter ended March 2025 showed healthy underlying trends in the branded pharmaceutical markets.
Margins surprised positively during the quarter.
The margin expansion trend will continue, supported by operating leverage in the branded segments, Citi said.
Jefferies
Maintain Buy rating and cut target price to Rs 3,740 from Rs 3,970.
The quarter ended March 2025 remained steady.
The India business is expected to continue its outperformance.
Growth in Brazil is expected to improve, while challenges in the United States are likely to persist in the near term.
Citi On Zydus Life Sciences
Maintain Sell rating with a target price of Rs 900.
The quarter ended March 2025 was ahead of expectations due to higher non-recurring components in the United States.
The company has guided for an Ebitda margin of 26% in the financial year ending March 2026, which is 300-400 basis points lower than the margin in fiscal 2025.
Extended sales of Myrbetriq and Sitagliptin may help prevent a decline in US sales in the financial year ending March 2026.
On Hindalco Industries
Citi
Maintain Buy rating and hike the target price to Rs 800 from Rs 725.
Stronger aluminum performance and debt reduction are key positives.
Management expects India aluminum costs to remain largely stable in the quarter ending June 2025.
Downstream Ebitda per tonne is expected to improve steadily.
India operations should benefit from lower costs, while Novelis is expected to gain from better scrap supply and improved profitability at the Bay Minette facility.
JPMorgan
Maintain Overweight rating and hike target price to Rs 720 from Rs 680.
The company delivered a strong finish to the financial year ending March 2025.
Better-than-expected product mix in aluminum downstream and the lagged impact of higher alumina prices aided the quarter ended March 2025.
Consolidated net debt to Ebitda at 1.06 times should provide comfort to investors.
Ebitda expansion is expected to continue over the next two to three years as downstream projects ramp up and captive coal mining commences.
JPMorgan On Global Strategy
Within the Asia ex-Japan region, the preferred country order is India > China > Korea > Taiwan > ASEAN.
Key overweight sectors in India are banks and commodities.
Country cycle trackers suggest buying value in India.
Foreign investors are rushing back, while domestic funds continue to maintain confidence.
Goldman Sachs On Global Economics
By 2050, the world’s five largest economies are projected to be China, the United States, India, Indonesia, and Germany.
Indonesia is expected to displace Brazil and Russia among the largest emerging markets over this horizon.
China is estimated to overtake the United States as the world’s largest economy around 2035.
Extending the projection horizon to 2075, the three largest economies will be China, India, and the United States, with India just overtaking the US.
Morgan Stanley On India Strategy
The drawdown in Indian stocks from the September 2024 high is viewed as an opportunity to buy into India’s long-term story.
However, India’s low beta means it may underperform a global bull market.
Earnings per share estimates are raised by 1% to reflect an upgraded GDP growth forecast.
New Sensex target for June 2026 is 89,000 (8% upside) versus 82,000 target for December 2025.
Fundamentals remain strong, supported by macro stability, improving terms of trade, declining primary deficit, and low inflation volatility.
Mid- to high-teens earnings growth is expected annually over the next three to five years.
India remains a reliable source of domestic risk capital.
Positives include a dovish Reserve Bank of India, ranged oil prices, and persistent retail buying underpinning the market’s structural nature.
Foreign portfolio positioning is the weakest since 2000, but there are signs of shifting views on India.
Preference is for domestic cyclicals over defensives and external-facing sectors.
Overweight sectors: Financials, Consumer Discretionary, and Industrials.
Underweight sectors: Energy, Materials, Utilities, and Healthcare.
The market is likely to be stock pickers’ driven rather than top-down or macro-driven, unlike since the Covid pandemic.
On United Spirits
JPMorgan
Maintain Neutral rating with a target price of Rs 1,415.
The quarter ended March 2025 showed a margin-led earnings beat.
Healthy premium and above segment growth momentum continues.
Revenue growth in the popular segment was modest at 1% year-on-year.
Upward revisions to earnings estimates are expected due to better-than-expected margin delivery.
Goldman Sachs
Maintain Buy rating with a target price of Rs 1,710.
The quarter ended March 2025 results were ahead of estimates.
There was acceleration in volume and revenue growth despite a tough consumption environment.
Standalone Ebitda margins expanded approximately 360 basis points year-on-year.
Macquarie On Bharat Electronics
Maintain Outperform rating; hike target price to Rs 400 from Rs 365.
The quarter ending March 2025 beat expectations with enhanced base order visibility.
Strong finish to the financial year ended March 2025, with Q4 Ebitda and profit after tax comfortably beating consensus on higher-than-expected margins.
Robust order pipeline: QR-SAM has been pushed out by a few quarters.
Other likely fast-track orders provide enhanced near-term confidence.
Fiscal 2026 margin guidance surprised positively.
BEL is well positioned with past research and development and longstanding defence relationships now bearing fruit.
Jefferies On Dixon Technologies
Maintain Underperform rating; hike target price to Rs 13,300 from Rs 12,660.
The quarter ended March 2025 profit after tax was a beat as Mobile and Electronics Manufacturing Services dominated the product mix.
Competition is a concern after the Mobile Production Linked Incentive expiry in the financial year ending March 2027.
Dixon is likely to be catering to a high share of domestic outsourcing by the financial year ending March 2027.
Earnings per share and profit after tax estimates for fiscals 2025-28 are raised, with a compound annual growth rate of 33%.
Dixon trades at 97 times the price-to-earnings ratio for the financial year ending March 2026, and valuation is rich.
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