Brokerage Views: CLSA On Tata Motors; Citi On IndiGo, Indian Oil And More

Top brokerages, from Nomura to Citi, have come out with interesting stock calls on a variety of sectors. Citi and Morgan Stanley have maintained rating on InterGlobe Aviation Ltd., while Nomura maintains a 'buy' on Uno Minda Ltd.

The benchmark equity indices ended higher on Friday, extending gains for a third straight day as ITC Ltd., Larsen & Toubro Ltd. and ICICI Bank Ltd. led the advance.

The NSE Nifty 50 closed 84.80 points or 0.39%, higher at 22,096.75, while the S&P BSE Sensex ended 190.75 points or 0.26%, up at 72,831.94. What are the technicals suggesting ahead of Tuesday opening? Read here.

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 Thursday morning.

• CLSA maintains 'outperform' rating on Tata Motors, with a target price of Rs 1,133

• Jaguar Land Rover retail volumes up 4.5% year-on-year in Feb 2024

• Volume growth was muted mainly due to a 46% year-on-year drop in Chinese volumes

• Chinese JLR volumes declined by 5% year-on-year in Jan-Feb 24 combined

• Discounts on Jaguars increased in Feb, declined for Land Rovers

• Expect JLR profitability to remain strong; Tata Motors to gain market share in domestic PV.

• Emkay assigned 'buy' rating to Coal India, with a target price of Rs 550.

• Large population, expansive scale makes coal phase out unfeasible for next decade, brokerage says.

• Use of coal should accelerate until renewables scale up.

• Coal India to succeed with high returns on invested capital and volume growth.

• Coal production CAGR estimated at 9.2% over FY23-27

• Earnings estimates ahead of consensus.

• Key risks include faster renewable energy adoption , disinvestment by Government of India.

• Prices of agri and non-agri commodities stabilised sequentially in Q4.

• Steady improvement in consumer spending expected to lead to volume growth in fiscal 2026.

• Recent palm oil price rise will affect Godrej Consumer Product's margins.

• HUL sees mixed bag of price fluctuations.

• Rising crude prices to shrink margins for Asian Paints, Pidilite.

• Emami to see improvement on 18.7% on-year fall in mentha oil prices.

• United Breweries to benefit from 25% on-year decline in barley prices, stabilised glass bottle costs

Sales Analysis in the current fiscal so far suggests:

• 100 cc segment’s contribution has fallen to 48.6% in YTDFY24 from 56.9% in FY20.

• Hero lost market share in domestic motorcycles by 300 basis points to 43%.

• In 125 cc, TVS Motor biggest outperformer, with market share rising 680 basis points to 15.1%.

• In the 150-250cc segment, Bajaj Auto biggest gainer; 390 basis points jump in market share to 34.6%.

• 250 cc+, Royal Enfield has lost 400 basis points share to new entrants.

• Within PVs, Maruti Suzuki's share stable at 42%; Fronx Vitara doing well.

• Scorpio biggest growth driver for Mahindra & Mahindra; Exter for Hyundai.

• Valuation fully priced in for two-wheelers; Mahindra top pick.

• Citi maintains 'buy' on Indian Oil, with a target price of Rs 195.

• Raise FY25/26 gross refining margin estimated to $9.5/9.5

• Margin forecasts raised on refining demand and supply balances

• Lower FY25E gross marketing margin on petrol & diesel to Rs1.8 per liter

• Gross marketing margins lowered on price cuts

• Recent price cuts to affect first quarter of FY25 margins

• Citi has change FY25/26 EBITDA estimates by 1%/4%

• Citi Research maintains 'buy' on Torrent Pharmaceuticals. The target price is Rs 2,960

• Remains among preferred picks in Indian Pharma space

• Investments in the branded markets to drive operating leverage

• Generics have bottomed out and expected to pick up in coming quarters, driven by new launches/tenders wins

• Expected to turn net cash positive in H2FY26, may keep scouting for inorganic opportunities

• Margin trajectory is expected to remain strong over the next 2-3 years

• Citi Research maintains 'buy' on InterGlobe Aviation, with a target price of Rs 3,700

• FY24 guidance achieved; FY25 guidance encouraging

• Supply growth, demand acceleration likely to double Indian aviation passengers over FY24-FY30E

• Low cost aids profitability, healthy on time performance and low cancellation rates support market share

• Addition of A321 XLRs to expand serviceable radius, aid further passenger growth

• Expect some increase in salary expense from regulatory changes effective Jun. 1

• Incremental regulatory cost is likely to be passed on to flyers

• Key risks — higher ATF prices from rising crude prices; higher cost pressures from depreciating Indian rupee.

• Morgan Stanley maintains 'Overweight' on InterGlobe Avaiation at Rs 4,145 target price.

• Company to add one new aircraft per week in 2024

• Management aims for double digit capacity growth in FY25 vs brokerage estimate of 6%.

• Nomura maintains 'buy' on Uno Minda at Rs 820 target, this implies an upside of 26%.

• New TLA with Starcharge Energy to expand firm's capability in EV- passenger car segment

• TLA to help develop local manufacturing base for home chargers

• Addressable opportunity to be limited to OEM sales for now

• Higher growth potential depending on EV-car industry pick over longer term

• Expect healthy ramp-up as it starts EVSE production over next 1 year

• Larger opportunity from ability to add more EV car components

Citi Retains 'buy' on Adani Port and Special Economic Zone with a price target of Rs 1,564

Stock remains top pick for the brokerage.

The company acquired 95% stake in Gopalpur Port for cash consideration of Rs 1,350 crore.

Acquisition valuation remains reasonable implying EV/EBITDA of 13x/10x on FY24/25E.

The acquisition viewed as incrementally positive for business.

Recent results show strong traction in the logistics business.

Visible market share gains and balance sheet continues to remain healthy.

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