Brokerage Views: Citi On Varun Beverages, Nomura On Exide Industries, Hyundai Motors And More

As second quarter results continue to roll in, brokerages are sharing their views on stocks. Citi has a positive outlook on Varun Beverages Ltd.—its top pick among India’s consumer staples sector, particularly after its announcement of plans to expand further into Africa. On the other hand, Nuvama remains cautious about CESC and Hindalco Industries Ltd., maintaining a 'hold' on both. CESC's Q2 profit miss and Hindalco's short-term challenges—especially surrounding Novelis' earnings and aluminum prices—are leading to more tempered forecasts. NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Tuesday..Stocks To Watch: Swiggy, Vodafone Idea, NBCC, BSE, Nykaa, Varun Beverages, Tata Chemicals.Maintained 'buy' with a target price of Rs 800, implying an upside of 37%.Top-pick in India consumer staples.Company announced plans to further expand in Africa.This mitigates concerns around the usage of the proposed fund raise.Sees long-term positives for growth opportunity in India.Strong execution-led growth/market share gains in existing international markets.Access to new territories in Africa for beverages and/or foods..Varun Beverages Acquires PepsiCo Bottlers In Tanzania And Ghana, Completes Buying Lunarmech.Downgraded to 'neutral' from 'buy', with a target price of Rs 439 from Rs 589 earlier. This implies an upside of 0.5%.Falling lithium cell prices and slower EV adoption pose risks to cell profitability.Q2 results were 12% below estimates.Weaker telecom demand near-term.Lowered FY25F revenue growth to 6% from 12% earlier. Cut Ebitda margin by 90bp/60bp.Lower target P/E multiple to 18 times vs long-term average 20 times earlier..Retained 'buy' with a target price of Rs 2,472 per share, an upside of 37%.Company focused on quality of growth and premiumisation with rising mix of SUVs.Domestic execution was strong relative to peers.Maintained estimates for volumes to be flat in FY25F and rise to an 8% CAGR over FY25-27F.Driven by 7-8 new models including facelifts and capacity increase.Estimates Ebitda margins to improve to 14% by FY27F from 13.1% in FY24.Estimates 17% earnings CAGR over FY25-27F, one of the highest in our PV coverage.Stock is very attractively priced at 18 times FY27F P/E..Hyundai India Q2 Results: Net Profit, Revenue Show Declines Amid Sales Slump.Nuvama maintains 'hold' on CESC, with a target price of Rs 190 per share, a 3.5% upside.Q2 net profit subdued, missed brokerage and street estimates.Enthused by CESC’s strategy of renewable energy transition-led cost cuts.Cost cuts can add to company's cash flows/RoE over time.Current stock price factors most near-term benefits, brokerage said..Nuvama maintained 'hold' on Hindalco Industries, and raised target price to Rs 737 from Rs 679 earlier. This implies a 13% upside.Aluminium profit expected to rise in third quarter on higher aluminium and alumina prices.Hindalco’s Indian operation enjoys low aluminium cost, higher alumina prices improving product mix.Novelis’ short-term earnings growth is uncertain amid a tight scrap market.Raised FY25 and FY26 consolidated Ebitda estimates by 7%.FY25-26 growth hinges on aluminum/alumina prices..Maintained 'sell' with target price of Rs 900 per share, a downside of 9.2%.Q2 numbers were slightly below estimates.Impact of competition in gasacol HD will be felt.This may result in third quarter margins to be slightly lower QoQ.Next 2-3 quarters may be volatile..Air India Valuation At Rs 56,000 Crore After Singapore Airlines' Equity Infusion.Maintainded 'sell' with target price of Rs 125, a downside of 23.8%.Second quarter results were below estimates.Have a more cautious outlook on the global demand trends.OEMs are cutting volume guidance and delaying new launches.Do not think growth in new segments can offset the decline in the autos business.Despite recent debt payoff, balance sheet continues to be leveraged..Retained 'add' with a target price of Rs 190 from Rs 200 earlier. This implies an upside of 14%.Organic revenue growth was 4-5% higher than the market.Premiumisation-led growth in content per vehicle would continue for company, brokerage said.Better visibility in non-autos with targets 25% sales contribution.But outlook is weakening and remains challenged across major markets.Lower FY25E/26E/27E EPS by ~10%/5%/3%, due to lower margins..Zydus Life, Nykaa, PNC Infra, Ashoka Buildcon, Samvardhana Motherson, Q2 Results Today—Earnings Estimates.Retained 'sell' with target price cut to Rs 155 from Rs 165, implying a downside of 13.6%.Push for growth keep margins rangebound.Company misses estimates on higher marketing spends.Own brands, eB2B, offline contribute to growth.Margins estimates for FY25-26 lowered..Initiates coverage on Power Finance with 'outperform', target price at Rs 630 per share, a 31% upside.Initiates coverage on REC with 'outperform', with target price at Rs 660, implying an upside of 25%.Initiated coverage on NTPC with 'outperform'. Target price of Rs 475 per share, implying an upside of 21% upside.Initiated coverage on Power Grid with 'outperform', with a target price of Rs 380, a 15% upside..Macquarie Initiates Coverage On Power Finance Corp., REC, NTPC, Power Grid — Here's Why.Retained 'buy' with a target price of Rs 1,252 from Rs 1,190 earlier, an upside of 25%.Q2 above estimates with strong segmental performance.Company continues to be a key beneficiary of premiumisation and rising electronics content.LED/alloy wheel penetration driving stronger growth.EV push by incumbent two-wheeler companies and upcoming launches should support further scale-up.EV-four wheeler opportunity is significant, expect more order wins to drive revenue from FY27F onwards.Revenue/Ebitda estimates remain largely unchanged.Stock currently trading at 36 times FY27F EPS.Stock is attractive given strong 23% FY24-27F EPS CAGR..HSBC maintains bullish outlook. Lower Brent prices support OMC profits as fuel pump rates stay fixed.Rebound in Indian oil demand post-monsoon to help volumes.Oil volatility seen as positive, discouraging pump price changes.Lower future oil prices, stable fuel rates set to support OMC margins.Brokerage maintains 'buy' on IOCL, BPCL, HPCL.IOCL/BPCL/HPCL target price set at Rs 190/460/480.Target prices of IOCL/BPCL/HPCL imply 37%/49%/28% upside..CLSA maintains 'outperform' on RIL with target price of Rs 1,650, implying an upside of 30%.Market ignoring new energy business worth $40 billion.RIL's 20 GW solar Gigafactory to launch in three-four months, benefit from global partnerships.Expects solar business value of $30 billion.Stock offers attractive entry point to play important catalysts in 2025..Swiggy Shares Close 17% Higher On Dalal Street .Reiterated 'buy', with a target price of Rs 8,400 per share, a 24% upside.Expects revenue to clock 16% CAGR over FY23-26.Projects Ebitda margin to improve 300bps over FY23-26.Strong demand in energy and mobility divisions to drive margins.Opportunity pipeline remains strong with key products like Xcelerator.Company rightly positioned to capture railway-related opportunities..Stock Market Today: Nifty, Sensex End Over 1% Down HDFC Bank & SBI Share Prices Drag

Brokerage Views: Citi On Varun Beverages, Nomura On Exide Industries, Hyundai Motors And More

Here are all the top calls from analysts you need to know about on Tuesday.

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