Brokerage Views: Goldman Sachs On DMart, Morgan Stanley On Zomato, CLSA On Cement Industry And More

Avenue Supermarts Ltd. and Zomato Ltd. will be among consumer and retail stocks in focus on Wednesday, as brokerages have altered their views on the stocks in the sector.

Goldman Sachs maintained 'sell' on DMart operator Avenue Supermarts Ltd. with a 10% downside, while Morgan Stanley maintained 'overweight' on Zomato with a 20% upside.

Meanwhile, Emkay Research expects a strong recovery in central government capex in the second half of the current fiscal. Nomura has weighed in on the recent regulatory action by the central bank to say that tightening rules by RBI have made the banking sector "difficult" to invest in.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Wednesday. 

• The brokerage maintained 'sell' with a target of Rs 3,425 per share, implying a 10% downside from the previous close.

• DMart is increasing price discounts to maintain a competitive advantage.

• DMart's target addressable market is not $500 billion but $86 billion.

• Growth headroom for DMart is outside the top 10 cities, but model is to own stores.

• Cut earnings multiple by 4%, 6% and 6% for fiscal 2025, 2026 and 2027, respectively.

• The brokerage lowered the multiple to 60 times.

• Axis Bank Ltd.: Target price of Rs 1,425, implies a 22.5% potential upside from the previous close.

• Nippon AMC: Target price of Rs 800, implies 9% upside.

• Maruti Suzuki India Ltd.: Target price of Rs 15,250 apiece, implies 35.4% upside.

• Samvardhana Motherson: Target price of Rs 210, implies 25.7% upside.

• Ahluwalia: Target price of Rs 1,315, implies 22.7% upside.

• KPIT Technologies Ltd.: Target price of Rs 2,040, implies 33.15% upside.

• Zee Entertainment Enterprises Ltd.: Maintained 'buy' and a target price of Rs 200, implying a 40.8% upside.

• Havells India Ltd.: Target price of Rs 2,031, implies 18.4% upside.

• Cyient DLM: Maintained 'buy' with a target of Rs 960, implies 44.8% upside.

• Metropolis: Target price of Rs 2,500, implies 14.3% upside.

• Global Health: Target price of Rs 1,440, implies 23.1% upside.

• BHEL: Maintained 'buy' with a target of Rs 371, implies 49% upside.

Takeaways from investor meet:

• Expects weakness in urban demand to more than offset the rural recovery.

• Investors remain selective and prefer companies with the least earnings downgrade risk.

• Acceptance of faster growth at Varun Beverages.

• Investors cautious on categories with increased competitive intensity (paints, grocery retailing, jewellery).

• Investors had mixed views on Hindustan Unilever Ltd., Godrej Consumer Products Ltd. and Britannia Industries Ltd.

• Investors remain cautious on ITC Ltd., Dabur India Ltd. and Nestle India Ltd.

• Cautious on Titan Co. and incrementally comfortable on Kalyan Jewellers India Ltd.

• Investors had mixed views on Jubilant and Devyani.

• Trent investors had questions on risk to store expansion.

• Investors had questions on risk from quick-commerce for DMart.

• Asian paints and Pidilite investors remained cautious amid increasing competition.

• The brokerage maintained 'overweight' with a target price of Rs 355 per share, implying an upside of 20% from the previous close.

• Expects Blinkit’s market share to be at 43% by FY26 (reduced from 46% earlier).

• Adjusted Ebitda margin for Blinkit to remain negative for the next few quarters.

• Any correction in stock in response to competition is a good opportunity to accumulate.

• Cement prices up Rs 10-30 per bag in early December.

• Pan India cement prices in third quarter up 3.5% sequentially and down 5% year-on-year.

• Expects prices to see 4% increase in the second half of the financial year.

• Sustainability of price hikes through March 2025 is key.

• Remains positive of demand rebound in the second half of the current financial year and fiscal 2026.

• Brokerage remains selective on the sector: prefers UltraTech Cement.

• Expects a strong recovery in central government capex in the second half of the current fiscal.

• Indicators from meetings in Delhi, on-ground feedback, and movement in government balances.

• Might miss 2025 target of Rs 11.11 lakh crore, but strong sequential growth expected after first half.

• Defence, roadways, and communication to show sharp sequential jump.

• Commercial vehicles, capital goods, and select infra financiers best way to play this recovery.

• Top ideas: L&T, HG Infra, Hitachi Energy, Voltamp, and Ashok Leyland.

• Regulatory tightening by the RBI has made the banking sector difficult to invest in.

• Any easing of the current draft regulations is positive for sector’s loan growth and profitability outlook.

• Large bank return on assets profiles is negatively impacted by about 5-10 basis points for every 50 bps repo rate cut.

• Expects stock price outperformance in the sector to be limited to fewer names.

• Prefers: State Bank of India , ICICI Bank Ltd. and Federal Bank.