Brokerage Views: Citi On IOCL, Petronet LNG; Investec On BSE And More

Here are the top calls by brokerages from Citi to Investec on BSE to Gland Pharma and Indian Oil Corp.

<div class="paragraphs"><p>(Source: Envato)</p></div>
(Source: Envato)

Top brokerages, from Citi to Investec, have come out with interesting stock calls on a variety of sectors. Investec has upgraded BSE to 'buy' and Citi maintains a 'neutral' rating for AU Small Finance Bank but lowers the target price.

India's benchmark indices ended little changed with a positive bias amid volatility on Wednesday, led by gains in shares of Reliance Industries Ltd., ITC Ltd., and the State Bank of India. Interestingly, the Bank Nifty recorded its worst losing streak in over 20 years.

Meanwhile, the U.S. Federal Reserve kept its key interest rate steady for the fifth straight time and continued to signal three rate cuts this year, but indicated that it is not in a rush to ease policy.

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.

Motilal Oswal On Gland Pharma

  • Motilal Oswal reiterates 'buy' on Gland Pharma Ltd., with a target price of Rs 2,240 apiece.

  • Encouraging revival in 9mFY24 after a weak FY23.

  • New launches and revivals in key markets will spur growth.

  • Expanded CDMO offering in European markets through Cenexi acquisition

  • Expect the company to clock a 20% earnings CAGR.

  • Value Gland at 27x 12 months forward earnings

Citi Research On Indian Oil Corp.

  • Citi upgraded Indian Oil Corp. to 'buy', but kept the target price unchanged at Rs 179 apiece.

  • Sentiments are dampened by the cut in petrol and diesel prices, the upmovement of crude, and profit-taking in PSUs.

  • However, price cuts are seen as temporary, providing an attractive entry point in the medium term.

  • Positive view on margins but watchful of downside risks from geopolitics

U.S. Fed Holds Key Interest Rate, Continues To Signal Cuts This Year

Citi On AU Small Finance Bank

  • Citi maintains a 'neutral' rating for AU Small Finance Bank but lowers the target price to Rs 622 apiece from Rs 790 apiece.

  • Deposit (with a focus on retail deposits) growth of 23-25% till FY27

  • Unsecured assets would constitute 15-20% of the book.

  • Asset quality is likely to remain rangebound, with PCR at 65-70%.

  • No additional branch expansion is planned for FY25.

  • 80-100 branches will be added over FY26-27.

  • No major investments are envisaged until FY27.

Citi On Petronet LNG

  • Citi maintains a 'sell on Petronet LNG and maintains a downside catalyst watch on stock.

  • Rising competition from HPCL, GSPC, and Gail to weigh in on stock

  • Citi also maintains a bullish gas price view.

  • Rise in ONGC’s gas production in the next few months to limit upside in LNG imports.

Nifty Bank Records Worst Losing Streak In Over 20 Years

Citi On NMDC

  • Citi maintains a 'sell' on NMDC with a target price of Rs 180 apiece.

  • There is limited support from domestic steel price trends.

  • Iron ore is likely to be volatile, and we see the selloff as having room to run further.

  • The iron ore market could post a small surplus in 2024.

  • A large part of the supply and demand dynamics is dependent on China’s steel outlook.

Motilal Oswal On Reliance Industries

  • Motilal Oswal maintains a 'buy' on Reliance Industries with a target price of Rs 3,210 apiece.

  • MNRE's hydrogen hubs initiative is in line with RIL's giga-scale electrolyzer manufacturing facility.

  • Reliance Industries outlines green hydrogen production at less than $1/kg.

  • It is expected that the earnings from the oil-to-chemicals segment in the fourth quarter of FY24 will remain robust.

  • Solar PV giga factory, battery pack production expected to start in FY25

  • Expects energy costs for standalone entities to dip 30–40% in the medium term.

  • Builds 5%/4% CAGR for subs/ARPU for telecom business over FY24–26

  • Expect a 29% CAGR Ebitda over FY24–26 for retail.

Investec On BSE  

  • Investec upgrades BSE to 'buy' with a target price of Rs 2,800 apiece.

  • Continues to witness strong traction in equity derivatives volumes.

  • Option market share jumped 3x QoQ from 4.2% to 15%+ in March 2024.

  • Expect clarity on margins and profitability; expect an improved margin profile in Q424e.

  • Recent correction: a good time to buy

  • Trades at 24x FY26e P/E with potential for 40-45% EPS CAGR FY24-26E

BNP Paribas On Bajaj Finance

  • BNP Paribas initiates coverage on Bajaj Finance with an 'outperform' rating and a target price of Rs 9,040 apiece.

  • Largest NBFC with retail/MSME products, focused on mass affluence

  • Uniquely successful cross-sell/upsell model

  • Long runway, no speed bumps in sight

  • Valuations reflect a structural growth story.

  • A multiple of 4.4x FY25E PBV is attractive given accelerated compounding.

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