Brokerages' Radar
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Brokerages issued fresh views on Avenue Supermarts, HUL, Marico, PNB, Bajaj Finance, Tata Consumer, M&M Finance, bank of India, bank of Baroda, Bajaj Housing, Jubiliant Foods, Lenskart alongside commentary on OMCs and consumers.
Citi on Bank of Baroda
- Maintain Buy with TP of Rs 340
- Advances/Deposits Registered Seasonal QoQ Contraction in Q1
- Pending case of NMC Holding settled through payment of Rs 5700 cr
- It has created Rs 1500 cr floating provisions in Q4 and carries cumulative floating provisions of Rs 2500 cr
- It may take incremental knock of this settlement payment in Q1FY27
- Given NIM moderation, modest treasury gains and normalised recoveries expect RoA to settle below 1%
MS on Marico
- Maintain Overweight with TP of Rs 934
- Q1: Better-than-expected Top-line Growth
- Good Trends Continued
- EBITDA growth remains a key to watch from earnings
- Management is optimistic on consumption trends
- Inflation and El Niño impact on monsoon key monitorable.
JPMorgan on Marico
Maintain Overweight with TP of Rs 900
- Q1 Revenue (volume led) beat; High teens EBITDA growth likely
- Believe Q1 print provides confidence in Marico's ability to clock high single digit volumes
- Growth led by successful portfolio diversification and focused interventions/investments towards the core portfolio
Macquarie on Marico
- Maintain Outperform with TP of Rs 890
- Pre-Q1 update better than expected
- Pre-quarterly update suggests sequential uptick in volume growth
- Expect ~15% Ebitda growth in Q1
GS on Marico
- Maintain Buy with TP of Rs 900
- Q1 update: Volume growth accelerates to double digits
- Parachute volume growth sharply improves to double digits, while VAHO and new segments sustain momentum
- EBITDA growth is likely to be in the high teens, as margins recover sequentially.
HSBC on Marico
- Maintain Buy; Hike TP to Rs 1000 from Rs 950
- Volume growth trajectory accelerates further
- Strong performance with double-digit (DD) volume growth vs a trend of high single digits in earlier quarters
- Parachute, too, delivered DD volume growth
- VAHO revenue growth in 20s; expect to see strong operating profit growth.
Citi on Avenue Supermarts
- Maintain Sell with TP of Rs 3650
- Q1FY27 Update: Pantry-Fill Reversal Weighs on SSSG; Margins Risk Ahead
- Remain cautious given expensive valuation and risks to SSSG and earnings from rising quick-commerce competition
- Sustained accelerated store-expansion and improved throughput will be key to support valuation multiples
MS on Avenue Supermarts
- Maintain Overweight with TP of Rs 5083
- Q1 – weak growth
- 15% growth was below expectations after a good Q4
- This is a weak print, especially in context of the presales updates of other retailers where growth momentum has sustained
- The weaker-than-expected growth could lead to underperformance in the near term
- Key monitorables from earnings include margins
Macquarie on Avenue Supermarts
Maintain Underperform with TP of Rs 3100
- Pre-Q1: Disappointing sales growth
- Sales growth and store additions below our estimates
- Believe SSSg moderated from 4Q levels.
GS on Avenue Supermarts
- Maintain Sell with TP of Rs 4000
- Q1 update: Weak quarter as revenue growth slows down
- This is despite large store openings in end of Q4FY26 and higher FMCG inflation
- Store addition in Q1 was low relative to past years
HSBC on Avenue Supermarts
- Maintain Reduce with TP of Rs 3870
- Weak print, growth lower vs Q4
- Standalone revenues up 15% YoY, vs 4%/5% miss to Consensus/HSBC est
- Revenue per Sq.ft down 3% YoY VS +2% in Q4FY26
UBS on Avenue Supermarts
- Maintain Buy with TP of Rs 5500
- Revenue growth of 15% disappoints, could weigh on stock price
- Overall a tepid quarter
MS on Bank of India
- Maintain Underweight with TP of Rs 115
- Q1 Initial Update: Strong Balance Sheet Growth
MS on HUL
- Maintain Equal-weight with TP of Rs 2480
- Believe the share price will rise over the next 30 days
- Expect HUL to surprise positively on top-line growth in Q1
- Pricing actions taken to pass on the inflation should support FY27 top-line growth
- Believe double-digit revenue growth delivery will be viewed positively
MS on Tata Consumer
- Maintain Overweight with TP of Rs 1351
- Believe the share price will rise over the next 45 days
- Expect India business growth momentum to broadly sustain in Q1
- Expect the company to deliver 12% revenue growth in Q1 and EBITDA margins to expand YoY to 13.9%
- Expect the company to deliver a 22% FY26-29 earnings CAGR, the highest among staple companies
MS on Titan
- Maintain Overweight with TP of Rs 5182
- Believe the share price will rise over the next 30 days
- Expect Titan to continue to report strong jewellery revenue growth in Q1
- Expect domestic Tanishq, Mia and Zoya (ex-bullion) revenue growth of +30% YoY aided by gold price inflation
- Strong operational performance and relatively lower valuations vs. peers should support stock outperformance
- Titan is preferred discretionary pick
MS on Britannia
- Maintain Equal-weight with TP of Rs 5848
- Believe the share price will fall over the next 45 days
- Q1 performance is expected to improve sequentially
- Expect some impact of dual pricing in the market to continue
- Expect stock underperformance to continue until the company delivers on higher revenue growth
Citi on Bajaj Housing
- Maintain Sell with TP of Rs 88
- AUM Growth Accelerates to 24.2% YoY / 6.3% QoQ
- Disbursements Modest
- Portfolio yields are likely to remain under pressure from lower acquisition pricing
- Expect C/I to remain elevated at ~20% owing to ongoing investments
Citi on PNB
- Maintain Sell with TP of Rs 103.
- Advances / Deposits Growth At 12.85% / 8.5% YoY Lags System Average.
- Overseas Advances Surge.
- Expect range-bound NIMs for Q1.
- Modest treasury and seasonally slower recoveries in Q1 may drag RoAs close to 0.8-0.85%
UBS on PNB
- Maintain Neutral with TP of Rs 122.
- Q1FY27: Loans and deposits growth remains modest; inline vs estimates.
- CD ratio expands sequentially.
MS on PNB
- Maintain Underweight with TP of Rs 88.
- Believe the share price will fall over the next 30 days.
- YoY growth in both credit and deposits decelerated in Q1 Vs Q4.
- Continues to lag system growth meaningfully.
- Expect the stock to underperform the broader market and stocks of other PSU bank peers.
Citi on Bajaj Finance
- Maintain Buy with TP of Rs 1120
- AUM Growth Accelerates to 23.9% YoY/7.2% QoQ
- New Loans and Customer Franchise Show Sequential Recovery
- Deposits Growth Remains Modest
MS on Bajaj Finance
- Maintain Overweight with TP of Rs 1120
- Q1 Update: 7.2% QoQ AUM growth, highest since Q2
- Investor focus is likely to be on Q1 NIMs, pace of credit cost declines, and overall FY27 outlook amid the current geopolitical situation
Jefferies on Bajaj Finance
- Maintain Buy with TP of Rs 1210
- Q1 shows an uptick in AUM growth to 24%, the highest in 4-Qtrs
- This reflects healthy core trends and seasonally stronger demand for consumer durable loans
- Seasonal uptick in consumer durable loans may also help NIMs
- Bajaj Finance may benefit more from stronger FCNR-B deposit mobilisation
- It stays among top picks
Citi on OMCs
- National service obligation borne by the OMCs is likely to be reflected in their Q1FY27 earnings
- Estimate a combined net loss of more than Rs 30000 cr
- Meaningful 7-15% networth erosion
- Would argue for an extended pause in both excise duties as well as retail prices of auto fuels
- Gov't has historically adopted a similar approach, allowing the OMCs to recoup prior losses and sustain through-cycle ROEs of 20%
- Believe the OMCs offer favourable risk/reward over the coming months.
Citi on Consumer
- Growth Momentum To Remain Strong In Q1 Despite Pricing Actions
- Expect Indian Consumer Staples companies to deliver another quarter of improving performance
- Volume growth should remain resilient sequentially despite 2–5% price hikes
- With key commodity costs now easing, the need for further price hikes appears limited
- This should help sustain the improving demand and volume trajectory into H2
- Remain selective; prefer Food & Beverages over Home & Personal Care
- Top Buys are Tata Consumer, Godrej Consumer, Britannia
- Top Sells are ITC, Colgate India, United Breweries
MS on Lenskart
- Maintain Overweight with TP of Rs 576
- Believe the share price will rise over the next 30 days
- Expect Lenskart to continue to deliver strong top-line growth
- Expect YoY EBITDA margin improvement in both markets
- Believe continued delivery on growth and margins should support outperformance going forward
MS on M&M Finance
- Maintain Equal-weight with TP of Rs 325
- Q1 update – good asset quality performance; loan growth remains muted
- See downside risks to credit cost forecasts for Q1F27 and upside risks to earnings forecasts
- Maintain a conservative stance on the overall FY27 earnings outlook owing to risks
- Think ROE should remain sub-15% even in FY28
- In that context, valuations appear full
Citi on M&M Finance
- Maintain Buy with TP of Rs 380
- Disbursements Accelerate; AUM Growth Sustains at 12% YoY
- GS3/GS2 Stable In A Seasonally Weak Quarter
- Liquidity remains robust.
Jefferies on M&M Finance
- Maintain Hold with TP of Rs 325
- Q1 Muted Growth
- Asset quality Hold Up Better Than Usual Seasonal Trends
- Disbursement growth improved to 21% YoY on lower base last year
MS on Vishal Mega Mart
- Maintain Overweight with TP of Rs 146
- Believe the share price will rise over the next 30 days
- Expect continued strong top-line growth and double-digit SSSG momentum
- Forecast 20% revenue growth led by 10% SSSG and 23 net new stores
- Lower crude prices should ease margin concerns in the coming quarters
- See Vishal's growth strategy as more defendable than peers
MS on Jubilant Food
- Maintain Equal-weight with TP of Rs 486.
- Believe the share price will fall over the next 30 days.
- Expect some QoQ improvement in growth rates.
- But to remain lower than the management's 5-7% like for like target.
- See limited near term triggers for stock outperformance.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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