Brokerages have highlighted opportunities across cables and wires, housing finance, auto ancillary and power sector, issuing fresh calls on Polycab India, Home First Finance, GE Vernova T&D, Sansera Engineering, while also sharing their outlook on defence and consumer staples sectors.
Jefferies on Polycab
- Maintain Buy with TP of Rs 11100
- Is Recent Correction a Buying Opportunity?
- Amid Ultravolt launch, Polycab is down 10% in 5-day, now at 35x 1-year forward PE
- At Rs 1800 cr capex and 4-5x asset turn, UltraTech's sales can form 5-6% of FY30 C&W industry
- Informal market at 25% implies headroom for new entrant
- Polycab is 70-75% Cables mix; UltraTech's focus seems more on Wires
- C&W industry's net profit margin at 5-7% offers limited leeway for price discounts
- Buy the fall.
Emkay on GE Vernova T&D
- Maintain Buy with TP of Rs 5300
- Emerged as an L1 bidder for the Barmer II–South Kalamb HVDC line
- Project value is expected to be Rs 25000 cr, with the HVDC portion worth Rs 7000-8000 cr
- Order backlog will scale up to a substantial Rs 28000 cr, providing revenue visibility of 4.2x
- GVTD is well positioned to capitalize on structural growth in the power transmission sector.
Kotak Securities on Home First
- Maintain Buy with TP of Rs 1530
- Recent interaction reinforces positive outlook on the affordable housing finance segment and Home First in particular
- Expect growth to remain strong and continue smoothly with potential upsides to estimates
- Margins remain healthy
- Do not see any red flags in asset quality trends across most borrower cohorts.
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Kotak Securities on Defence Sector
- Defense: Large AoN approved; BEL and HAL key beneficiaries
- Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) for procurement proposals worth Rs 1.1 LAKH CR
- Nearly 98% of the value is earmarked for domestic industry
- This is one of the largest single-sitting indigenous clearances on record
- This package is a Buy-Indian/IDDM opportunity, with BEL and HAL the likely multi-item beneficiaries
- Cumulative AoNs since FY24 cross Rs18 lakh cr, reinforcing a robust order pipeline
- AoN is an in-principle first step; RFP-to-contract typically lags two years, so order accrual will be in FY27-29E
CLSA on Sansera Engineering
- Initiate Outperform with TP of Rs 4954
- Growth engine taking wings
- Aerospace opportunity adding to growth
- ADS segment is poised to become Sansera's primary growth engine
- Rising ADS mix should support margin expansion
- Diversifying beyond auto ICE while maintaining growth in the segment
- Expect EPS to more than double over the next 3 years
- Sansera is a compelling 2x in three years story.
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MS on Consumer Staples
- Neither corporates nor local investors are seeing concerning signs of consumption slowdown
- Inflation pressures manageable and indicators still supportive
- Structural factors continue to present a growth opportunity, driving more users and usage frequency, as well as premiumisation
- The go-to-market landscape in India is rapidly evolving, with the rise of quick commerce in particular requiring strategies to adapt
- Beauty continues to offer significant opportunity, particularly in make-up which remains a relatively underpenetrated category
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