Brokerages' Radar
Source: AI Generated
Gas utility, auto, financials, pharmaceutical, information technology (IT), consumer and electronics manufacturing services (EMS) stocks are likely to remain in focus on Friday after brokerages released fresh reports on Mahanagar Gas Ltd. (MGL), Exide Industries, Syrma SGS Technology, Swiggy, Westlife Foodworld, Ajanta Pharma and Hexaware Technologies.
MS on MGL
- Maintain Overweight with TP of Rs 1421
- Growth Surprises
- Beat vs expectations via strong volume growth, CNG retail price hikes, and US gas sourcing exposure
- Unit margin driven by lower Henry Hub prices and Rs5/kg CNG hike
- OMCs' under recoveries should keep prices up for longer, benefiting CNG
Citi on MGL
- Maintain Buy with TP of Rs 1400
- Performance amid supply challenges on account of the West Asia conflict is impressive
- Volumes, too, were ahead of expectations, led by strong
- CNG volume growth managed to offset the impact through price hikes across segments
Citi on MGL
- Maintain Buy with TP of Rs 1400
- Impressive Performance amid supply challenges on account of the West Asia conflict is impressive
- Volumes, too, were ahead of expectations, led by strong
- CNG volume growth managed to offset the impact through price hikes across segments
Citi on Exide
- Maintain Buy with TP of Rs 410.
- Q1 Results Significantly Above Estimates.
- See healthy revenue growth across segments.
- Price-hikes and better mix helped offset the impact of higher commodity costs on gross margin.
- Healthy operating leverage further helped EBITDA margin.
MS on M&M
- Maintain Overweight with TP of Rs 4222.
- Q1 – A Tad Weaker Than Expected, Gradual Earnings Recovery in H2.
- Farm margins could face further headwinds in Q2.
- Auto margins should get better QoQ, but the company did not quantify the benefit.
- 2027 will be exciting for M&M; incremental growth could be more from ICE.
Macquarie on M&M
- Maintain Outperform with TP of Rs 4066
- In-line Q1; near-term macro headwinds persist.
- Constructive growth outlook; cognizant of macro headwinds.
- Believe M&M is in a sweet spot with multiple SUV launches over the next 12-24 months and resilient tractor demand.
BofA India Strategy – Amish Shah
- Tide is slowly turning
- Investors would have to stay nimble & rotate sectors to generate higher relative returns around market volatility
- Continue to expect Nifty to offer flat returns in INR terms and underperform most large Emerging markets, in CY26, in USD terms
- Nifty year-end target unchanged at 26200
Move to Overweight
- NBFCs & mid-sized private banks: better liquidity & resilient macro offers growth opportunities
- Autos on electrification, strong growth/margins
- Cement on continued govt. capex spends
- Move IT sector to neutral weight on investor positioning & fading AI rally
Move to Underweight
- Healthcare: now rich
- PSU banks: ECL to impact growth/RoE
- AI plays (Transformers, Gensets) on Chinese competition & fading AI rally
- Telecom on delayed tariff hikes
- Prefer Financials, Autos, Quick Commerce, Regulated Power Utilities, Select Discretionary, Upstream Energy, Non-ferrous metals, Cement
- Cautious: PSBs, Insurance, Healthcare, Telecom, Industrials, Staples, Retailers, Paints
Jefferies on Syrma SGS
- Downgrade to Hold from Buy; Hike TP to Rs 1430 from Rs 1185
- Strong Qtr, but Stock Rally Factors it Too
- Prudence Recommended Post Sharp Rally
- Raise EPS by 12-13% and est FY27-29 EPS CAGR at +33%
- In-line with Syrma's May26 outlook (+30-35% growth in FY27)
- But this implies growth deceleration in 9MFY27
- Working capital, debt have risen
Macquarie on Swiggy
- Maintain Underperform with TP of Rs 230.
- Slower growth; higher cash burn.
- Swiggy has outlined a path to adj EBITDA breakeven in Instamart, both timeline and trajectory are opaque.
- Also in the context of a just appointed CEO for Instamart and significant management change we consider this. aspirational and not a base case.
Bernstein on Swiggy
- Maintain Outperform with TP of Rs 430
- Quick commerce sees favorable setup for a re-rating
- Swiggy is going through the unenviable task of chartering their Instamart business through a tough phase in full public view
- However, the stars seem to be aligning for Swiggy now
- Q1 result was strong; next few quarters should be stronger
- News about Zepto's IPO postponement are likely to improve the competitive environment
Macquarie on Westlife Food
- Maintain Outperform with TP of Rs 520
- Largely in-line Q1; growth outlook constructive
- Like the multiple growth tailwinds
- Key downside risks remain input cost pressures, demand weakness
Jefferies on Ajanta Pharma
- Maintain Buy; Hike TP to Rs 4050 from Rs 3550
- India & US led beat in Jun-26 Qtr
- India outperformance continues
- Asia to rebound, Jun-Q impacted by ME conflict
- US growth to come off due to competition
Jefferies on Hexaware
- Downgrade to Underperform from Hold; Hike TP to Rs 500 from Rs 480
- Weak growth outlook
- Cut revenue/EPS estimates by up to 7% to factor Q2 miss and weaker-than-expected 6-7% growth guidance for CY26
- With worsening growth outlook/delivery, believe current PE multiple of 22x is unlikely to sustain
MS on Bajaj Finance
- Maintain Overweight; Hike TP to Rs 1225 from Rs 1175
- Q1: In a strong phase
- Results beat expectations on almost every metric
- Guidance will be revisited on the Q2 results call
- Target price hike driven by loan growth, NIM, and credit costs; see upside risks
Macquarie on Bajaj Finance
- Maintain Underperform with TP of Rs 850
- Strong execution across the board
- Margin resilience offsets cost pressure
- Prudent provisioning, demanding valuation
- Rising borrowing costs and a potential rate hike could disrupt margins
MS on Tata Steel
- Maintain Overweight with TP of Rs 235
- Strong domestic realization, largely offset by higher opex
- Consolidated EBITDA was 11% below consensus
- RM costs were higher led by higher coking coal consumption cost.
JPMorgan on Tata Steel
- Maintain Neutral with TP of Rs 214
- Largely in-line print
- All eyes on Europe profitability going forward
- India business profitability was strong
- Management's commentary on Europe's profitability outlook will be key
- Expect the stock to trade in line with the broader market.
Macquarie on Mankind Pharma
- Maintain Underperform with TP of Rs 2080
- Q1FY27 result: Largely in line
- Domestic growth underperformance continues
MS on Niva Bupa
- Maintain Equal-weight with TP of Rs 91
- Q1: Another good quarter
- Loss ratio improved on non-renewal of large contracts in group business that had unfavorable economics
- Company continues to deliver well on profitability and top-line growth, but see limited upside.
Macquarie on Torrent Pharma
- Maintain Outperform with TP of Rs 5000.
- Q1FY27 beat on profitability.
- Robust growth across key businesses.
- JB Pharma synergy benefits driving margin expansion.
- JB integration and synergy realisation progressing ahead of plan.
- Semaglutide outlook remains encouraging.
HSBC on Sedemac Mechatronics
- Initiate Buy with TP of Rs 3700
- R&D-led layered revenue compounding.
- Sedemac's advanced sensor-less motor controls used in starter systems for 2Ws/3Ws have catapulted its growth in recent years.
- Diversification into EVs, power tools and commercial vehicles with a wide range of products will maintain its growth momentum.
- Strong growth trajectory supported by proven R&D capabilities demands premium valuation.
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