Brokerages have highlighted opportunities across edtech, cement, banks, pharma, automotives, and airport infrastructure sector, issuing fresh calls on UltraTech Cement, Physicswallah, GMR Airports, Samvardhana Motherson, NTPC, Aurobindo Pharma, IDFC First Bank, while also sharing their outlook on the NBFC sectors, along with their broader India strategy.
Motilal Oswal on Physicswallah
- Initiate Buy with TP of Rs 200
- Affordable education, scalable economics
- PW Online: A (low-cost) monopoly in education
- PW Offline: Hyper Expansion over, profitability soon
- India consumer business quadrants: Our framework to assess platform scalability.
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Kotak Securities on GMR Airports
- Maintain Buy; Hike TP to Rs 121 from Rs 118
- Positives going unnoticed
- Hyderabad Airport tariff order benefits from the upfront recognition of capex at a higher allowed cost of capital
- Also view the recent credit rating upgrades positively
- The same will materially reduce the refinancing risk for the 5% of consolidated debt maturing by February 2027
- CMP implies sub-5% downside over the next year, assuming only the value of existing concessions
- See 25% upside in base case—assumes reinvestment of cash, third-party business in duty-free and the value of legal cases.
Jefferies on UltraTech
- Maintain Buy with TP of Rs 14065
- Ultravolt marks entry into wires & cables just 18 months after announcement
- Entry is focused on Wire & Low-Tension Cables to start with
- Mgmt. targeting top-2 industry position in these within 5 yrs
- Positioning appears more aggressive than initially envisaged, also tallying with Grasim's rollout in paints
- At scale, business could add 3-7% of UTCEM FY30E Rev/EBITDA
CLSA on Samvardhana Motherson
- Maintain Outperformw with TP of Rs 190
- Scaling up amidst diversification
- Moving up scale and ROCE; path for a credible and sustainable execution
- Maintaining strong pricing power amidst adversities for global OEMs
- Larger focus to remain on autos; open for M&As in non-autos too
Kotak Securities on NTPC
- Upgrade to Add from Reduce; Cut TP to Rs 355 from Rs 365
- Improving execution to drive earnings growth
- PAT growth will be back-ended for renewable projects; Street will adjust
- 35.7 GW of capacity under construction; targeting 151/250 GW by FY2032/37E
- Inexpensive valuations
GS on Aurobindo Pharma
- Maintain Buy with TP of Rs 1750
- Transitioning from generics leader to bio/ CMO pioneer
- Respiratory is the biggest near-term catalyst, led by gAdvair DPI and a broader DPI/MDI pipeline
- Partnered complex respiratory assets could be meaningful but are longer-dated
- First NDA/ atopic dermatitis product could provide non-respiratory upside
- Lannett integration can drive U.S. scale and margin accretion
- Eugia and new plants are important earnings swing factors
- Biologics/CDMO/MSD optionality may be underappreciated by investors.
Jefferies India Strategy - Mahesh Nandurkar
- Macro comfort with a 'nominal' unease
- Jun26 qtr showed resilient economic performance driven by a capex uptick
- The nominal GDP was lower-than-expected
- Creates some potential pressure on the fiscal headroom
- Non-defence capex could then decline by 10% in the remainder of FY27 even as revenue trends are inline
- Large FCNR collections provide support to the INR from any potential crude spike led import bill worries.
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Citi on IDFC First
- Mobilizes FCNR(B) Deposits of $3.57bn (11% of Deposits)
- This marks a sharp outperformance
- Deposit accretion lifts absolute NII/PPOP by >2%/>5% on consensus FY27 estimates
- Enlarged balance-sheet base coupled with thin margins on FCNR flows compresses NIMs by 30-35 bps
Jefferies on NBFC
Auto financiers: Resilient Growth & Asset Quality; Assessing Market Share Trends
Auto disbursements stay resilient in a seasonally weak Sep-QTD
Chola Finance/Shriram Finance appear to be gaining CV share as captives/ elect NBFCs pull back
Better demand/ utilization vs. last year should support growth though base gets tougher
Growth in non-auto segments should aid growth too
Asset quality is stable, with scope for credit-cost beat
But we stay watchful of monsoon risks
Prefer diversified NBFCs/select auto financiers; top picks: Bajaj Finance, Chola Finance, AB CAPITAL, Shriram Finance.
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