Brokerage Views: Swiggy Gets 'Overweight' Rating, Gopal Snacks, PNB And More In Focus

JPMorgan initiated coverage on Swiggy Ltd., calling it the "dark horse" of Indian local services. The brokerage expects strong profit growth in both food delivery and quick commerce. The brokerage noted Swiggy trades at a steep discount to Zomato, despite year-on-year improvement in profitability.

Emkay retained a 'buy' rating on Gopal Snacks Ltd. It mentioned temporary disruptions due to a fire at its Rajkot facility, but noted recovery to 50% supply levels.

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 Thursday. 

• Initiated coverage with an 'overweight' rating and a target price of Rs 730 apiece, implying a 27% upside from the previous close.

• Describes Swiggy Ltd. as the "dark horse" of Indian local services.

• Expects Swiggy to catch up in food delivery and quick commerce segments.

• Projects faster profit expansion compared to peers.

• Notes that Swiggy trades at a 32-42% discount to Zomato Ltd., which it considers overly pessimistic.

• Highlights year-on-year momentum in Swiggy’s profits in food delivery, narrowing the gap with Zomato.

• Retained a 'buy' rating on the stock and lowered the target price to Rs 575 apiece from Rs 600, implying a 43% upside from the previous close.

• Observes temporary business disruption due to a fire at its Rajkot facility, which contributes 60% of capacity and 70-75% of production or revenue.

• Expects sales to be impacted for a month.

• Reports that procedural formalities for production at a third-party unit and ramp-up are on track.

• Notes Gopal Snacks has quickly reverted to 50% supply levels this week.

• Awaits clarity on resumption of capacity at its Rajkot facility.

• States that operating with third parties in the interim is likely to lack efficiency benefits.

• Lowers earnings estimates by 37% for the fiscal ending March 2025, 18% for fiscal 2026, and 9% for fiscal 2027.

• Retained a 'sell' rating on the stock and assigned a target price of Rs 96 apiece, implying a 7% downside from the previous close.

• Hosted a discussion with Managing Director and Chief Executive Officer Atul Goel.

• Targets a sustainable return on assets of 1% due to significantly lower credit costs.

• Expects net interest margins to remain in the 2.9-3% range despite yield pressures.

• Projects improvement in asset quality with contained slippages and visibility on corporate recoveries.

• Does not anticipate material stress build-up in any segment.

• Reiterates advances growth guidance of 11-12% year-on-year and deposits growth guidance of 9-10% year-on-year.

• Notes that a shift to the new tax regime will provide a 10 basis points return on assets benefit by the first quarter of fiscal 2026.

• Retained a 'buy' rating on the stock and assigned a target price of Rs 2,100 apiece, implying a 35% upside from the previous close.

• Reports that challenges from product transitions by Bloom Energy, its largest customer accounting for 70% of revenue in the fiscal 2024, are now over.

• Expects strong near-term growth driven by a revival of orders from Bloom Energy and the addition of new clients.

• Projects compound annual growth rates of 28% in revenue, 42% in Ebitda, and 58% in adjusted profit after tax for fiscals 2024 to 2027.

• Notes that small and mid-cap stocks outperformed large caps in the calendar year 2024.

• Highlights that the National Stock Exchange Midcap Index is trading at a 24% premium to its five-year average, driven by higher earnings per share growth.

• Suggests a selective, bottom-up approach for investments in calendar year 2025.

• Recommends stocks such as Adani Total Gas Ltd., Newgen Software Technologies Ltd., HEG Ltd., KEI Industries Ltd., IDFC First Bank Ltd., and Bandhan Bank Ltd.