Stock Picks Today: UltraTech, Paytm, SBI Funds, Shyam Metalics, And More On Brokerages' Radar

Brokerages issued fresh views on UltraTech Cement Ltd., Paytm, Oberoi Realty Ltd., Sona Blw Precision Forgings Ltd., Shyam Metalics and Energy Ltd., SBI Funds Management Ltd. Karur Vyasa Bank, alongside commentary on Indian consumer, FCNR etc.

Jefferies on UltraTech

• Maintain Buy; Hike TP to Rs 14065 from Rs 14050
• Staying Ahead of the Pack
• Q1 reflected another qtr of strong execution on both Unit EBITDA and volume growth
• EBITDA growth was driven by double digit vol growth & better prices
• Mgmt expects pricing to remain stable through the monsoon, amid peak industry costs
• Expect double digit volume growth in FY27 with modest EBITDA/t expansion.

GS on UltraTech

• Maintain Buy; Hike TP to Rs 13500 from Rs 13160
• Q1 review: Strong results; Incumbent growing like a challenger
• Dominance visible in superior volume growth and relatively better pricing
• Prices so far in Q2 have held-up despite it being a monsoon quarter
• Ultratech is set to deliver 16% EBITDA CAGR over the next 2 years.

MS on UltraTech

• Maintain Overweight; Hike TP to Rs 14700 from Rs 14600
• Looking beyond near-term cost inflation
• Sharp volume market share gains have been achieved without compromising on realizations
• Cost inflation led by the Middle East conflict remains a drag
• Key to watch: demand trajectory beyond monsoons.

CLSA on UltraTech

• Maintain High-Conviction Outperform; Hike TP to Rs 14000 from Rs 13800
• Beat on all fronts
• Cost guidance surprises and growth pipeline reiterated
• Profitability holds up better and 2Q guidance surprises positively
• Strong growth pipeline

Citi on Paytm

• Maintain Buy; Hike TP to Rs 1560 from Rs 1425
• EBITDA Momentum Driven by Financial Services & Lower Cloud Costs
• Payment GMV growth rate accelerated
• Paytm is seeing growth acceleration, led by both merchant & consumer franchises & its delivering solid operating leverage
• See upside to earnings (quantum and quality), if UPI-MDR is introduced.

GS on Paytm

• Maintain Buy; Hike TP to Rs 1500 from Rs 1430
• Q1FY27 Review: Strong quarter driving estimate upgrades
• Growth was driven by market share gains in both offline and online
• Strong traction in merchant loan distribution has sustained
• Paytm disclosed that it has applied for a wallet license, which could be additional revenue lever
• EBITDA margin for Paytm to double vs Q1 levels by FY28

 HSBC on Oberoi Realty

• Maintain Buy; Hike TP to Rs 2310 from Rs 2100
• Walking the red carpet in NCR
• Q1 was light on pre-sales but big bang launch of Gurugram in Q2 makes up for any apprehension
• Expect an acceleration in new launches and momentum for high-quality residential products to continue

 Jefferies on FCNR

• FCNR-B Mobilisation Off to a Good Start
• Conversations with banks indicate that this is mostly fresh money from UAE/Singapore/Hong Kong via internal and partner banks' clients
• Mobilisation of $50-70bn will be positive, esp if current IRRs suffice, & best ways to play will be NBFC & smaller private banks

UBS on Sona Blw Precision Forgings Ltd.

• Initiate Buy with TP of Rs 830
• The sum is greater than the parts
• Strong legacy business with multiple growth engines
• Established track record of scaling adjacent businesses
• An early mover in a potentially transformative industry
• Forecast consolidated revenue/earnings CAGRs of ~20%/~25% over the next 5 years
• This will be supported by an increasingly diversified business mix

CLSA India Consumer

• FMCG price survey
• 5x more price increases than cuts since May; 18% of samples saw raise
• Home care saw the biggest price increases
• Britannia biscuits saw a price increase of 8% on average
• Coconut hair oil saw 11% price cut while VAHO saw a 14% price increase
• Consumer prices to remain volatile especially home and personal care products

UBS on Shyam Metalics

• Maintain Buy with TP of Rs 1250

• Delivered strong Q1FY27 revenue and EBITDA growth of 23/32% YoY
• EBITDA growth led by improving realisations
• Margin improved 90 bps YoY through cost optimisation
• Shyam, one of our top midcap ideas

GS on Shyam Metalics

• Maintain Buy with TP of Rs 1050
• Surpasses estimates; Capacity ramp up is the key growth driver

Kotak Securities on Karur Vyasa Bank

• Maintain Sell; Hike TP to Rs 285 from Rs 275
• Operational excellence remains intact
• Strong operating momentum drives another strong quarter
• Growth and asset quality remain reassuring, margin outlook requires patience
• Valuation discomfort overrides a strong business performance.

ALSO READ: Shyam Metalics Q1 Review: UBS Calls It A Top Midcap Pick; Goldman Sees Capacity-Led Growth — Check Target Price

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