Brokerages' Radar
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Brokerages issued fresh views on Nestle, Dr Reddy, Eternal, BPCL, HPCL, United Spirits, JSW Energy, Sona BLW and more.
Jefferies on Nestle
- Maintain Hold; Hike TP to Rs 1425 from Rs 1325.
- Great but Wait.
- Reported another blockbuster quarter.
- Performance was broad-based across categories & channels.
- Growth rates should taper off from H2FY27.
- There are better opportunities to play the pick-up in sector, as Nestle at 70x 1Y P/E leaves no scope for error.
Macquarie on Nestle
- Maintain Neutral; Hike TP to Rs 1,575 from Rs 1,400.
- Q1: Sales strength, gross margin beat.
- Believe gross margin will remain strong.
- Margin supported by continued strength in high-margin infant nutrition sales, expected benign inflation across key inputs.
MS on Dr Reddy
- Maintain Equal-weight; Cut TP to Rs 1,200 from Rs 1,215.
- Weak Q1; Sema H2 Rampup Key to Track.
- Adjusted revenue was 2% and EBITDA was 13% below estimates.
- Earnings are at trough.
- Timely resumption of Semaglutide supplies and Abatacept rampup are keys to meet FY28 estimates.
- Adjusted for Sema disruption and impact from ME crisis, the margins could have been around 18% in Q1.
BofA on Dr Reddy
- Maintain Buy; Cut TP to Rs 1480 from Rs 1500
- Weak Q1 on lower US & sema API impact
- All eyes on sema resumption
- EBITDA miss but hope for H2 improvement
- Math on high teen margin in Q1
- Confidence on sema key for stock.
Jefferies on Dr Reddy
- Maintain Underperform with TP of Rs 1040
- Q1 results a miss even after adjusting for provisions
- Margins declined on weak US, higher RM cost and SG&A spends
- Mgt expects better margins in H2FY27
- Cut FY27-29E est by 1-15% on delays in Sema launch in Canada
- Slower uptake of Sema and delays in bAbatacept approval pose downside risks to est
Citi on Dr Reddy
- Maintain Sell; Cut TP to Rs 1040 from Rs 1070.
- Weak Q1 Reinforces Margin Concerns.
- Cut FY27/28E EPS by 24%/8%.
- Remains confident of Abatacept approval by Dec-26.
MS on Eternal
- Maintain Overweight; Hike TP to Rs 373 from Rs 347
- Execution drives conviction
- Steady momentum in food delivery and quick commerce NOV growth to continue
- Strategy to maintain growth momentum irrespective of competition was comforting
- Management believes QC steady state margins can be at the upper end of a 5-6% range
- Strong Q1 beat and commentary drive estimates higher
- Good execution should reinforce confidence in management's outlook
- Stock has done well since mid-June, but we still see room for re-rating
Citi on Eternal
- Maintain Buy; Hike TP to Rs 385 from Rs 360.
- Solidifying its leadership position in Quick Commerce with many structural advantages.
- Believe discounts alone are unlikely to threaten or disrupt.
- Expand geographically with deeper presence in next-tier cities.
- Commentary on competition suggests greater confidence in how Eternal is positioned to differentiate.
Macquarie on Eternal
- Maintain Underperform with TP of Rs 190.
- Growth acceleration, margin resilience.
- Remain guarded on aggregate Q-Com economics and what's priced in the shares.
Jefferies on Eternal
- Maintain Buy; Hike TP to Rs 415 from Rs 400.
- Life could be Absolute.
- Q1 reinforced a simple message: quality growth matters more than chasing share.
- Food delivery accelerated with better-than-expected profitability.
- Q/C outcome was positive despite missing our optimistic forecast.
- Blinkit does not prefer short term discounting route & in the process, if the rest of the market grows faster, so be it.
Citi on JSW Energy
- Maintain Buy with TP of Rs 650.
- Q1: Operating Drags Transitory; Better Execution Visibility.
- Capacity additions pickup.
- Thermal: backdown risks manageable; brownfield optionality improving.
- Company has begun FY27 capacity additions on a strong note.
Macquarie on JSW Energy
- Maintain Outperform with TP of Rs 720.
- Q1FY27: Strong capacity addition; one-offs drag.
- Believe Q1 masks the strong underlying progress - a record capacity addition and an improving balance sheet.
- Current drags expected to be transient.
- Believe JSW Energy is set up well for a stronger rest of the year.
Citi on BPCL
- Maintain Buy with TP of Rs 350.
- Q1: Operational Superiority on Full Display.
- Continue to prefer BPCL within the OMC space.
Macquarie on BPCL
- Maintain Outperform with TP of Rs 370.
- Q1FY27: Marketing drags, refining cushions.
- Supply situation for BPCL remains comfortable.
- Current volatility in crude prices is likely to impact OMCs' earnings near term.
Macquarie on IndusInd Bank
- Maintain Underperform with TP of Rs 625.
- Asset quality improvement on track.
- PAT beats estimates, aided by lower credit cost.
- Margins to remain under pressure.
- RoA ambition faces a demanding road.
Jefferies on IndusInd Bank
- Maintain Buy; Hike TP to Rs 1250 from Rs 1100
- June Quarter: On Track for Improvements
- Results show progress on improving trends in growth, asset quality, and core ROA
- Core trends were better, aided by lower opex and credit costs
- Expect improvements to continue over the next 2-3 years
- Visibility on 1.5% ROA will be key to a rerating
Macquarie on HPCL
- Maintain Outperform with TP of Rs 490.
- Q1FY27: Trough quarter likely.
- Expect near-term earnings to remain volatile for OMCs.
Jefferies on HPCL
- Maintain Underperform; Hike TP to Rs 345 from Rs 275.
- Steep losses but benefits from Inventory Gains.
- Spot marketing margins are back in the red after the crude rally.
- Build in PAT loss for FY27.
- HPCL trades at premium to BPCL despite reporting 3x the PAT loss of BPCL in the quarter.
Macquarie on United Spirits
- Maintain Underperform with TP of Rs 1350.
- Q1: Marginal Ebitda miss on higher ad spends.
- Healthy growth momentum in the prestige segment, as the state mix likely aided realisation growth.
- Management confidence of increasing growth further as the year progresses.
- Healthy gross margin delivery and the moderate inflation in employee costs.
Jefferies on Sona BLW
- Maintain Buy with TP of Rs 700.
- Expanding Opportunities in JV with Denso.
- Partnership appears timely given rising pace of EV adoption across 2Ws and 4Ws in India.
Citi on Sona BLW
- Maintain Buy with TP of Rs 700.
- Strengthening the Position in EV Powertrain Business with 2 JVs with Denso.
- View the deal positively as it strengthens Sona's position in the 4W EV powertrain segment where its presence has been relatively limited.
Macquarie on Adani Green
- Maintain Outperform with TP of Rs 1800.
- Q1FY27: Robust growth, de-risking underway.
- Strategic shift from merchant exposure toward long-term contracts materially derisks future cash flows.
- This gives a more predictable returns trajectory as it scales toward its 50 GW RE/50 GWh BESS ambition.
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