Stock Picks Today: Eicher, Titan, Premier Energies And More On Brokerage Radar

Eicher Motors Ltd., Titan Co., and Premier Energies Ltd. are among companies that have drawn commentary from top brokerages on Wednesday. Analysts have tweaked share price targets and future outlook after some of these companies announced their December quarter results.

Brokerages On Eicher Motors Q3 Results

Macquarie

• Maintain Neutral with target price of Rs 7479.
• Solid Q3; capacity expansion to meet demand.
• Margin surprise drove EBITDA beat.
• Growth outlook constructive.

Citi

• Maintain Buy; Hike TP to Rs 8300 from Rs 8200.
• Q3 results above estimates; Outlook is positive.
• Footfalls, bookings and conversion have seen sharp increase post GST cuts.
• Volumes and margins are both witnessing encouraging trends.
• Hike EBITDA estimates due to better ASP and margins.
• Increases in EPS lower due to higher depreciation.

Morgan Stanley

• Maintain Equal-weight; Hike TP to Rs 7578 from Rs 7190.
• Q3 Ebitda was in line.
• Given high utilisation rates and a healthy demand outlook, Eicher announced capacity expansion.
• Commodity pressure persists; offset by selective price hikes, richer mix, and value engineering.
• Ex-VECV, the stock trades at 34x F27 P/E, in-line.

Jefferies

• Maintain Buy; Hike TP to Rs 8800 from Rs 8650.
• Strong growth and expanding capacity.
• Expect RE to be a key beneficiary of rising 2W demand and premiumisation.
• Its toughest phase of competition as well as margin concerns are behind.

ALSO READ: Eicher Motors Q3 Results: Royal Enfield Maker Posts 21% Jump In Profit

Brokerages On Jubilant Food Q3 Results 

Morgan Stanley

• Maintain Overweight with TP of Rs 775.
• Q3 beat; good margin performance.
• EBITDA margin aided by operating leverage; Gross margin led by price hikes and better mix.
• Management remains focussed on driving growth.
• Mgmt is confident that it can maintain growth momentum.
• Guidance for 200 bps higher margin in next 3 years was reiterated.

Citi

• Maintain Buy with TP of Rs 800.
• Continues to report strong growth and margin improvement.
• On track to reach 15% pre-IND AS EBITDA margin by FY28.
• Popeyes reported double-digit LFL (third consecutive quarter).
• Turkey business generating steady FCF and servicing debt.
• Strategy has started to yield growth, market share gain, and margin improvement.

Jefferies

• Maintain Buy with TP of Rs 850.
• Margin Surprise despite Growth Normalisation.
• Underlying pre-Ind AS Ebitda margins expanded to a nine-quarter high.
• See operating leverage and with limited contribution from product price hikes too.
• This margin expansion is particularly positive as it came despite a moderation in LFL.
• Delivery continued to gain salience, but dine-in requires attention.
• Mgmt guided for a 5-7% LFL, with 15% topline growth and continued margin expansion.

Bernstein

• Maintain Outperform with TP of Rs 680.
• Q3: Domino's performance on track; Optionalities not priced in yet.
• Popeyes — commentary remains bullish.
• 75% of Domino's revenue comes from delivery orders.
• Hence, ad-monetization is an interesting plug-in to existing revenue models.
• However, it is too early and possibly too small a revenue play to give credible upside.

ALSO READ: Stocks To Watch Today: Ashok Leyland, Mahindra & Mahindra, Tata Capital, SJVN And Patanjali Foods

Motilal Oswal On Premier Energies

• Initiate Buy with TP of Rs 1,000.
• Integrated manufacturing driving growth and multi-decade opportunity in solar manufacturing.
• Play on India's solar scale-up; indigenization of clean power generation.
• Leading module manufacturer with best-in-class backward integration.
• Industry-leading operational and profit metrics.
• Capacity expansion and new business scale-up to drive 30% EBITDA and APAT CAGR.
• Horizontal expansion into allied capital goods manufacturing verticals.
• Integrated capacity key amid backward integration push.

Brokerages On Titan Q3 Results

Morgan Stanley

• Maintain Overweight with TP of Rs 4,062.
• Q3: Slight miss on jewellery margins; Strong topline performance.
• Jewellery revenue grew 40% YoY aided by exchange programs (launched in September 25), festive collections, and bundled offers.
• Jewellery margins were down 50 bps YoY due to lower studded margins, higher gold coin sales and higher marketing spend.
• Eyewear and watches performed ahead of expectations on growth and margins.

CLSA

• Maintain Outperform with TP of Rs 4369.
• Robust growth; jewellery Ebit beat.
• Jewellery business Ebit beat consensus estimates by 11%, driven by top line.
• Analog watches delivered volume growth of 19% YoY and realisation was flattish.
• Eye care domestic business grew 17% YoY, led by steady demand across categories and high single digit volume growth.

ALSO READ: Premier Energies Shares Receive New 'Buy' Rating With 21% Upside From Motilal Oswal

Brokerages On Samvardhana Motherson Q3 Results

Jefferies 

• Maintain Buy; Hike TP to Rs 160 from Rs 145.
• Margin beat, expansion QoQ led by polymers and integrated assemblies.
• Recent acquisitions should boost growth in FY27.
• Also like its expansion into electronics and aerospace.
• Raise FY27-28 EPS by 8-11%, expect 31% EPS CAGR over FY26-28E.

Citi

• Maintain Sell; Hike TP to Rs 95 from Rs 85.
• Q3 beats estimates.
• Management noted that operational efficiencies are driving margin expansion.
• Consumer electronics and Aerospace continue to be key focus areas.
• Ramp up in these divisions expected to offset the impact of muted demand in developed markets.
• Remain cautious on global demand as well as profitability of emerging businesses.

Morgan Stanley

• Maintain Overweight; Hike TP to Rs 144 from Rs 126.
• EU business turnaround is showing positive results.
• Non-auto ramp-up remains on track.
• New acquisitions should drive further growth from H2FY27 onwards.

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