Stock Recommendations Today: DMart, ONGC, Petronet On Brokerages' Radar

Citi offers its outlook on D-Mart parent Avenue Supermarts Ltd., while DAM Capital is bullish on Petronet Engineering Construction Ltd. Jefferies shares its top picks in the electricals sector.

NDTV Profit tracks what various brokerages are saying about stocks and sectors. Here are all the calls you need to know from analysts on Friday:

Citi On Avenue Supermarts

• Maintain 'sell' rating with a target price of Rs 3,500, implying a 3.1% potential downside.

• Growth rate accelerates partly led by store expansion.

• Watch out for margin trajectory, says the brokerage.

• Revenue per store saw 2.7% five-year CAGR.

• Remain cautious due to increasing competitive intensity from quick commerce.

• Believe throughput continues to be impacted due to adverse product mix, store additions in smaller towns, and increasing competitive intensity from quick commerce.

Jefferies On ONGC

• Reiterate 'buy' on ONGC, cut target price to Rs 375 from Rs 410 earlier, indicating a 58% upside potential.

• 30% correction in stock tracking, and 10% decline in crude oil prices.

• Recent correction presents buying opportunity in stock.

• Earnings per share to benefit from better earnings outlook of HPCL.

• Recent regulatory auctions bode well for better profitability.

• Key trigger: Expected KG basin production ramp-up in the final quarter of this year or the first quarter of fiscal 2026.

• Expect KG basin production to contribute 10% of fiscal 2026 consolidated Ebitda.

DAM Capital On Petronet LNG

• Maintain 'buy' on Petronet LNG at Rs 385 target price, indicating a 17% upside potential.

• PNGRB does not have authority to implement regulations regarding tariff in latest report.

• Petronet to only see tariff cut in 2028; when contract renewal is due.

• Terminal contracts to see 10% tariff cut from 2029.

• Best placed to benefit from India's expected LNG demand to 45 MTPA by fiscal 2030.

• Co to benefit from capacity expansion at Dahej from 17.5 MTPA to 22.5 MTPA.

• Expect co to report fiscal 2025-2027 Ebitda growth of 12%.

Jefferies On Electricals

• Top pick is Amber Enterprises at Rs 8,840 target price versus Rs 6,460 earlier, indicating a 17% upside potential.

• Maintain 'underweight' on Dixon Technologies (India) with a target price of Rs 12,600.

• Maintain 'hold' on Kaynes Technologies with a target price of Rs 6,950.

• Maintain 'buy' on Syrma SGS Technology with a target price of Rs 730.

• EMS players saw sharp stock returns of 135-180%, outpacing index.

• Positive on backward integration and components theme.

• Expect 30% EPS CAGR between FY24 and 26.

Nomura On EMS & Consumer Durables

• Retain 'buy' on Dixon Technologies with a target price of Rs 22,256, indicating an upside potential of 24%.

• Retain 'buy' on Voltas with a target price of Rs 2,142, indicating an upside potential of 17%.

• Retain 'buy' on Crompton with a target price of Rs 460, indicating an upside potential of 23%.

• Macro tailwinds in EMS to drive strong growth.

• Slower growth in most durable segments.

• In FY26, expect some normalisation in growth in ACs, other segments to see modest growth.

• Believe India's electronics production can grow at 25% CAGR over FY24-30.

• This should drive strong over 40%p+ revenue growth for EMS players in FY26.

• Expect 61% revenue growth for Dixon in FY26, led by a ramp-up of mobile volumes.