Brokerage Views: Bernstein On Bajaj Auto, Nomura On OMCs And More

Top brokerages, from JPMorgan to Nomura have come out with interesting stock calls on a variety of sectors. While JPMorgan is bullish on the engineering and research and development sector, it has given an 'underperform' rating for Tata Technologies after initiating coverage on the stock.

Meanwhile, Nomura is bullish on the Indian oil marketing companies. Citi Research has initiated coverage on RR Kabel Ltd. with a 'buy' rating.

India's benchmark stock indices fell to their lowest level in over a month on Tuesday, dragged by losses in the shares of IT companies.

The Nifty closed 238.25 points or 1.08% lower at 21,817.45—the lowest level since Feb. 13—while the Sensex fell 736.37 points or 1.01% to end at 72,012.05—the lowest since Feb. 14.

We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are the top calls, from Tata Tech to Gujarat Gas and Bajaj Auto.

• JPMorgan initiates coverage on Tata Technologies Ltd. with an 'underperform' rating. It has set a target price of Rs 800 apiece, implying a downside of 23%.

• While ER&D remains a star sector,

• The company has high client concentration with limited evidence of scaling non-anchor clients.

• Expects a low earnings CAGR of 16% over FY24–26E vs. peer average of 18%.

• Believe valuations are excessive at 53x 1-year forward P/E.

• Bernstein rates Bajaj Auto as an 'outperform' with a revised target price of Rs 9,400 apiece.

• Increased near-term and long-term estimates for Bajaj Auto

• Key levers: improvement in exports, pick-up in domestic volumes

• Revised the long-term revenue/Ebitda growth estimates by 1-2%

• The value ascribed to the EV business is $1.6 billion.

• Expect the EV venture to have a 12% market share in e-scoters by FY30.

• Citi Research initiates coverage on RR Kabel with a 'buy' rating. The target price is Rs 1,728 apiece, implying an upside of 21.43%.

• Despite being lower than the industry margin, pre-tax ROCE is 18%.

• Margin improvement: exports, increased contribution of power cables, operating leverage

• Strong distribution network, early signs of success in FMEG business

• Forecast a 28% EPS CAGR over FY24–26E.

• Jefferies has a 'buy' rating on Syrma SGS Technology, with a target price of Rs 640 apiece, implying an upside of 34.82%.

• Favourable risk-reward, well-diversified into various verticals

• Incremental focus on niche verticals can help drive sales/PAT CAGR of +36%/57% over FY24-26E

• Return on capital employed can double over FY24-26e to 21% in FY26E with ramp-up in new capacities.

• Assign a target P/E of 38 times to March 2026 earnings per share.

• Citi reiterates its 'downside catalyst watch' on Gujarat Gas with a target price of Rs 450 apiece, implying a downside of 8.4%.

• Increase in spot LNG prices to limit volume recovery

• Rise in LNG demand in Europe and Asia; lower Russian pipeline gas exports to tighten LNG markets

• Gujarat Gas current Morbi volumes are up 10% to 4 million metric standard cubic metres per day, following a 9% price cut.

• Volume growth is below street expectations.

• Target prices for HPCL, IOCL, and BPCL have been raised to Rs 570, Rs 195, and Rs 735 apiece, respectively.

• Believes the overhang on marketing margins has passed.

• Believe OMCs will be allowed to revert to daily prices post elections

• Factor marketing margins of Rs 3 per litre

• Healthy refining outlook over CY24/25

• Favourable demand-supply, global inventory levels to support the refining segment

• Expect refining margins of $9 per barrel.

• Nuvama retains 'buy' on Dabur with a target price of Rs 680 apiece.

• Focus on premiumisation and scaling up existing categories to new adjacencies.

• Boost profits via price hikes.

• Target of 20%-plus Ebitda margin and 8–10% A&P spends

• Targeting a direct reach of 1.6 million outlets (existing 1.4 million) in the near term

• The sustainability of rural businesses remains key.

• Expects Q4FY24 volumes to rise by a mid-single digit with margin expansion.