Brokerage Views: Citi On Zomato, Jindal Steel, Morgan Stanley On Shriram Finance And More

Brokerages have Jindal Steel & Power Ltd., Zomato Ltd. and Varun Beverages Ltd. among others on their radars following the release of these companies' fourth-quarter results.Meanwhile, they also have come up with their take on Shriram Finance Ltd. after it announced the sale of its housing finance arm, Shriram Housing Finance, to Warburg Pincus.NDTV Profit tracks what the brokerages are putting out on specific stocks. Here are all the top calls from the brokerages that you need to know about on Tuesday..The brokerage reiterated 'sell' call on the company with a target price of Rs 800 per share (14% potential downside from the previous close). India steel prices are 7–8% premium to import parity, limiting upsides.Unsure about whether the new hot strip mills will translate into higher volumes in FY25.Expects FY25 sales volume growth to be 9%. Ebitda/tonne estimates for FY25/26 are Rs 14,300 versus Rs 12,000 earlier. .Indian Bonds Among Least Vulnerable in Asia to Treasury Swings.Nuvama reiterated its 'buy' call on the steel maker with a target price of Rs 1,185 apiece (27.3% potential upside from the previous close). Expects Ebitda/tonne to increase to Rs 15,000 in Q1FY25 due to higher steel prices.Expects Ebitda CAGR to increase to 34% over FY24–26. Return on capital employed expected to improve to 21% in FY26 from 13% in FY24. .The board approved the sale of a stake in Shriram Housing to Warburg Pincus at Rs 4,630 crore.Value of the 85% stake is Rs 96 per share vs Rs 140 per share as Citi estimates.The brokerage values the company at 2.2 times price to book. The company was generating a 2.2% return on assets, a 14% return on equity with an asset under management growth of 71%.Entire stake sale implies Shriram Finance was more keen on deploying capital in the core business. .Tycoon Birla’s Novelis Plans US IPO As Soon As June.Sale of 100% of Shriram Housing but Shriram Finance (83.8%) and Valiant Partners (16.2%). Transaction at Rs 4630 crore - 18% below the brokerage's estimates. Valuation at 2.1 times FY25E price to book value. The transaction should result in a 3% higher book value and 70 bps accretion to Tier 1 capital in FY25..Citi maintains a 'buy' call on the company with a target price of Rs 235 per share (19.5% upside from the previous close).Fourth-quarter Ebitda largely in line with estimates. Pace of quick commerce expansion implies higher competition with peers. Raises quick commerce estimates, expects gross order value growth at 71%/39% in FY25/26. Margin outlook is still intact in the medium term. NCR, Bengaluru, Mumbai to support over 500 dark stores each. Margin uptick in food delivery is expected on platform monetisation, with stable corporate overheads..Wall Street Looks Past PPI With Powell In Focus: Markets Wrap.Nuvama maintains a 'buy' call with a target price of Rs 245 per share (24.6% upside from the previous close). Q4 revenue in line with estimates, margin missed brokerage estimates.Blinkit expansion to impact short-term profitability but help cement business as a quick-commerce leader.Anticipates aggressive store addition to hurt Blinkit's margin expansion for next two quarters. Short-term store-expansion plan impact to be offset by higher margins in FY26..The brokerage maintains an 'overweight' rating on the company with a target price of Rs 1,701 per share (16% upside from the previous close). Q1 CY24 earnings were 13% ahead of brokerage estimates.Management is optimistic on near-term Indian demand trends and growth drivers in the international market. Net realisation per case up 3.5% YoY, driven by improving product mix. All plants operating at 100% capacity utilisation. Management reiterates margin guidance of 21–22%. .The brokerage maintains 'buy' with a target price of Rs 1,720 apiece (an upside of 16% from the previous close). Cost optimisation and better realisation drive earnings. Expects strong sales growth in 2Q CY24, led by heat waves, elections. Has commissioned three greenfield facilities in CY24 YTD. Out of planned capex of Rs 3,600 crore, Rs 3,400 crore is done, Rs 200 crore over next quarters. Expects to maintain momentum due to increased penetration in new territories. Higher acceptance of new launched products, capacity and distribution expansion.Expect a CAGR of 21%/22%/29% in revenue/Ebitda/profit after tax over CY23–26..Morgan Stanley maintains an 'equal-weight' rating for DLF with a target price of Rs 900 per share (7.3% upside from the previous close).FY24 pre-sales of Rs 14,800 crore, 7% lower than estimates.Sale of Privana West of Rs 5,600 crore in Q1 FY25 will help FY25 growth.Collections growth of 14% to Rs 2,200 crore in 4Q FY24 slower than 80% in the past two quarters.Net profit of Rs 920 crore, up 62% YoY, better than consensus estimates..Citi maintains a 'sell' call with a target price of Rs 2,986 per share (35.2% downside from the previous close).Growth in Q4 FY24/FY24 order inflows at 2%/6% were below expectations.Order inflows slowed down in Q4/FY24 due to a miss in large orders.Large orders pipeline looks healthy but is yet to fructify.Valuations at 73 times/61 times the FY25/FY26 earnings-per-share estimates remain expensive..The brokerage gave a 'buy' rating with target price of Rs 610 per share (upside 22% from the previous close). Estimates industry headwinds to persist in FY25.Industry supply glut and Chinese generic export could keep prices under pressure.Demand recovery, and liquidation of the global supply glut are key rerating catalysts.UPL appears to be on better footing once recovery sets in. .The brokerage maintains 'buy' with a target price of Rs 5,300 per share (34% upside from the previous close). Orders and delivery run rate to increase with stable profitability. Expects order wins of Rs 5.3 trillion over FY 24–28 implying a quadrupling of the order book by FY28. Government push should improve HAL's execution capability and profitability.Street's concern about production ramp-up looks misplaced.Target-price increase led by earnings upgrade, roll forward and increased target PE. .Stock Market Today: Sensex, Nifty Close Higher For Third Consecutive Session

Brokerage Views: Citi On Zomato, Jindal Steel, Morgan Stanley On Shriram Finance And More

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

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