Stock Picks Today: Cummins, Berger Paints, Aurobindo Pharma, Hindalco Novelis, Metropolis, And More On Brokerages' Radar

Brokerages have identified opportunities across the pharma, paints, online insurance, and diagnostics sectors, with fresh calls on Cummins, Berger Paints, Aurobindo Pharma, Hindalco's Novelis, Metropolis, PB Fintech, and Cohance, Navin Fluorine, Power Grid, and Tenneco Clean.

JPMorgan on Cummins

• Maintain Neutral with TP of Rs 5882
• Very weak margins in Q1FY27 – lowest over past 10 quarters
• Especially in the context of relatively low exposure to commodities like copper/silver, etc.
• Key question: Does Q1FY27 mark the end of the robust margin performance phase, or is it an aberration?
• Weak margin performance and the MD's resignation will lead to a negative stock price reaction.

HSBC on Cummins

• Maintain Buy with TP of Rs 6500
• Margin pressure led earnings miss
• Lower margins offset strong execution
• Management commentary points to steady business momentum from key markets.

Citi on Cummins

• Maintain Buy with TP of Rs 6700
• Q1 First Take: Margins Below Expectations
• Impact of commodity headwinds/lag in pass-through was greater
• Await clarity on any one-off expenditures in the earnings call.

ALSO READ: Five Stocks To Buy Today: Vedanta, RBL Bank, Belrise Industries Among Others | August 6

Kotak on Hindalco Novelis

• Maintain Buy with TP of Rs 1120
• Novelis—in-line quarter; operational headwinds abating
• Oswego ramp-up on track for H2FY27E
• BM to contribute from FY28E; leverage near cyclical peak
• Believe the worst is likely behind Novelis.

MS on Hindalco Novelis

• Maintain Overweight with TP of Rs 1140
• Novelis: FY27 a year of transition
• Core EBITDA was better than expected
• Oswego recovery, Bay Minette commissioning, cost savings playing out, and the start of deleveraging
• The Bay Minette ramp-up remains the key medium-term catalyst, driving strong margins and cashflow recovery from next year on

 Macquarie on Hindalco Novelis

• Maintain Neutral with TP o Rs 1080
• Modest EBTIDA beat; Expansion on track, execution is key
• See upside risk to FY27/28 consolidated EBITDA from higher aluminium prices
• Key upside risks are earnings surprises at Novelis, led by better margins and resilient domestic earnings
• Key downside risks are slower ramp up in Novelis volumes/margins and weaker-than-expected aluminium prices.

 MS on Berger Paints

• Maintain Underweight with TP of Rs 429
• Q1: In Line; Favourable Q2 Base Ahead
• Management sounded optimistic on Q, given base was affected by heavy monsoons
• Overall EBITDA margin guidance of 15-17% maintained
• Dealer stocking in anticipation of hikes continued in Q1 and hence Q2 could see slight moderation in volume growth

Macquarie on Aurobindo Pharma

• Maintain Underperform with TP of Rs 1300
• Q1 – lower R&D cost to marginal EBITDA beat
• Geographic performance remained mixed
• US revenue increased 8% in local-currency terms supported by volume growth and new product

 Macquarie on PB Fintech

• Maintain Outperform with TP of Rs 1950
• Unabated growth momentum continues
• Q1: In-line profitability, revenue growth strong
• Renewal book bearing fruit, new initiatives on track
• Solid growth supports lofty valuations.

Nomura on PB Fintech

• Maintain Neutral with TP of Rs 1590
• Robust momentum; Q1 beat estimates by 10%
• Policybazaar & other insurance platforms: healthy improvement in take rates and contribution margins
• Paisabazaar: core disbursals pick up momentum, new product launches lined up for Aug-26
• Regulation still haunts us.

ALSO READ: Stock Market Today: All You Need To Know Going Into Trade On Aug. 6

MS on Metropolis

• Maintain Equal-weight; Hike TP to Rs 614 from Rs 588
• Q1 – healthy volume growth
• Management guided for 14-15% revenue growth for FY27 with 150 bps improvement in EBITDA margins
• Although visibility at Metropolis is improving, continue to prefer Dr Lal Pathlabs for its larger scale and superior return profile

MS on PB Fintech

• Maintain Underweight with TP of Rs 1215
• Q1 – good quarter
• Adjusted EBITDA margin was in-line, though adjusted EBITDA beat estimates on higher revenues
• New protection premium growth was strong, but an elevated base kicks in from Q3
• Stay Underweight owing to expensive valuation amid potential regulation on commissions.

Macquarie on Cohance Life

• Maintain Outperform with TP of Rs 1150
• Q1 – a quarter to forget
• Cohance reported a materially weaker-than-expected Q1 performance
• Revenue declined primarily due to contraction in the Pharma CDMO segment
• Management expects sequential recovery in performance in Q2 and a return to YoY growth in H2.

Jefferies on Cohance Life

• Maintain Underperform; Hike TP to Rs 350 from Rs 300
• Still much work to do
• Below est on continued sales declines in all 3 business divisions
• During the qtr, low sales caused EBITDA to collapse to near break-even levels
• Mgmt believes the co's performance has bottomed and that it should report YoY growth in H2
• See lack of sustainable growth in the near term and challenges in all divisions

Jefferies on Navin Fluorine

• Maintain Buy; Hike TP of Rs 9045 from Rs 8700
• Q1 Review: Beat; Earnings Upgrade Cycle Continues
• Strong pipeline in CDMO and cooling products, and participation in new molecules in spec chem anchor medium-term growth
• New capex in advanced materials will create another growth engine in the medium-term
• Upgrade FY27/28 PAT 8%/4% and project 23% EPS CAGR over FY26-29
• Valuation is below long term average.

Citi on Navin Fluorine

• Maintain Sell; Hike TP to Rs 7200 from Rs 6500
• Q1 Ahead, New Capex Initiatives
• Mgmt continues to guide for sustainable EBITDA margin of 31–34%
• Risk-Reward Unfavorable
• Stock up 50% over the past year, partly factoring in the recent earnings strength
• See downside risk to R32 pricing over the next year.

Citi on Tenneco Clean

• Maintain Buy with TP of Rs 650
• Q1 Results Marginally Ahead of Estimates
• Q1 was affected by significant commodity increases due to the adverse geopolitical environment
• Enthused by the ART division winning an order from European ATV maker and the CAPT division getting an order from Tenneco America. 

Macquarie on Power Grid

• Maintain Outperform with TP of Rs 400
• Q1: Steady start; capex guidance key
• Expect Power Grid's capex/capitalisation to pick up going forward
• There is further comfort from ~Rs1.7tn of work-in-hand.

 
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.
 

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.