Brokerage Views: Jefferies On GAIL, Citi On Ambuja Cements And More

Jefferies and Citi Research has on April 1 released interesting stock calls on a range of sectors to kick off the new fiscal year.

Jefferies maintained an 'underperform' rating on the state-owned gas transmission and marketing company Gail (India) Ltd. While Citi has reiterated a 'buy' on Ambuja Cements Ltd.

Benchmark equity indices pared some gains in the last hour of Thursday's session but still managed to close the last week of the financial year over 1% higher.

The NSE Nifty 50 ended 219.85 points, or 0.99%, higher at 22,343.50, while the S&P BSE Sensex closed 639.16 points up, or 0.88%, at 73,635.48.

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 Monday morning.

• Jefferies maintained 'buy' on Adani Enterprises and kept target price unchanged at Rs 3,800.

• Commissioned first phase of copper unit in Mundra.

• Once fully commissioned, this will be the largest custom copper smelter in the world.

• Suggests groups ability to plan and execute large scale projects.

• Copper site is located in Mundra, enabling synergies.

• Product portfolio also includes other value added products.

• Antique initiates coverage on Mamaearth-parent Honasa Consumer with a 'hold' rating and target price of Rs 400.

• Revenue growth, improving profit materially could be a challenge in medium term.

• Appreciate ability to create brands with innovative product launches.

• Mamaearth has reached a sizeable scale.

• Large part of future growth will have to be driven by retail expansion.

• Continue aggressive advertising and promotional spends restricting profitability

• Expect sales CAGR of 25% over FY23–26.

• Ascribe a valuation multiple of 60x FY26E.

• ICICI Securities assigned 'buy' rating on Dynamatic Technologies with target price of Rs 10,250, implying a 37% upside

• Aerospace to be the primary growth vector.

• Hydraulics and metallurgy divisions are turning a fresh leaf.

• Capex has peaked out, debt to fall, returns to improve.

• Ebitda CAGR of 19% and Ebitda margin of 17-18% through to FY27.

• Target price based on 45x FY26E EPS.

• Nifty outperformed peers; government acts to boost rural demand.

• Nifty did well on back of recovery of heavyweight sectors like oil & gas and FMCG.

• FIIs were net buyers in Indian equities and debt market in March.

• T+0 settlement system launched; govt hikes MGNREGA wages by 3%-11%.

• Bull-bear index in neutral zone.

• CLSA India portfolio outperformed the Nifty by 0.6 percentage points during the week.

• Bottoming out of revenue growth, pace of recovery lower than previous estimates.

• Expect recovery to be slower than previous phases.

• Investor positionings still light, relative valuations close to five-year averages.

• Expect most large caps to register revenue CAGR of 7-8% over F24-26.

• EBIT margins to improve YoY, EPS growth FY24-26 to be higher than FY22-24.

• Overweight: TCS, Infosys, HCL Technologies and Coforge.

• Equal Weight: LTIMindtree

• Underweight: Tata Elxsi, L&T Technology Services, Wipro, Tech Mahindra

• The brokerage has maintained an 'underperform' rating with a target price of Rs 150 per share.

• The Petroleum and Natural Gas Regulatory Board's newly notified unified tariffs remain unchanged at $81.13 per metric million British thermal unit.

• New tariffs, effective June, will include newly commissioned pipelines.

• The brokerage's estimates remain unchanged, and it projects muted earnings growth over FY24–26.

• Risk reward remains unfavourable.

• Citi has maintained a 'buy' on the cement manufacturer with a target price of Rs 645 apiece.

• About 44% of promoter warrants converted inspire confidence.

• The brokerages allow the company to benefit from cost efficiencies.

• It expects a favourable swap ratio for Ambuja, should there be a merger with ACC.

• Citi expects Rs 4000 to 5000 crore per annum for the next few years.

• The brokerage retained the 'buy' on the company with a target price of Rs 2,000 per share.

• It expects the technology initiatives of the company to drive long-term efficiencies.

• It aspires to increase the indemnity health market share from 3% to 4.5% over three to four years.

• About 9.5–11% of market share is in the motor insurance segment.

• Efficiencies from tech investments and scale benefits boost profitability.

• The brokerage retained 'overweight' rating and target price of Rs 970 for on PNB Housing Finance.

• Both CARE and ICRA have revised rating for the company to AA+ with stable outlook from AA (positive outlook).

• Morgan Stanley sees improved asset quality, strengthen capital position.

• The credit rating positive for growth and profitability

• Improves availability and cost of borrowing

• Stock has underperformed, see a good entry point

• Valuation is attractive at 1x FY25E PBV, 9x PE

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