Stock Recommendations Today: Trent, BSE, Voltas On Brokerages' Radar

Trent Ltd., BSE Ltd., and Voltas Ltd. were among the top companies on brokerages' radar on Wednesday.

According to Morgan Stanley, Trent's management remains confident of achieving its ambition mentioned in 2023, which was to grow 10x bigger in the not too distant future, while balancing profitability.

In addition, Goldman Sachs has cut BSE's target price to Rs 2,430 from Rs 2,490 due to moving expiry day, which could result in BSE losing 3 percentage points of market share

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Wednesday.

Morgan Stanley On Avenue Supermarts 

• Maintain Underweight with Target Price of Rs 3,260

• First major store opening in the state of Uttar Pradesh, which is India's most populous state

• DMart follows an ownership model for its retail stores

• Follows a cluster-based approach for store expansion

• View this opening in state of UP as a positive step

• Would closely track the company's pace of expansion in the state, where the opportunity to open stores remains large

Jefferies On Adani Ports

• Maintain Buy with Target Price of Rs 1,700

• Targets to be among the world's largest integrated transport utility companies by 2030

• Leveraging back to 2.2-2.5x Net D/Ebitda target by FY29 suggests Rs 25,000 crore funds over FY26E-29E for acquisitions/equity actions

• Annual report reiterates focus on having a strong presence in South East Asia- India-Middle East-Africa Corridor

Morgan Stanley On Trent

• Maintain Overweight with Target Price of Rs 6,359

• Management remains confident of achieving its ambition mentioned in 2023

• Aims to grow 10x bigger in the not too distant future, while balancing profitability

• Expect the company to achieve 10x its FY23 revenues by FY32

• Focus remains on the quality of its store portfolio, and increasing store density in proximate markets

• Company is expanding into under penetrated markets to increase revenue growth and share in the micro-market

• Trent was free cash flow and net cash positive in FY25

• Return ratios improved to record levels aided by better profitability and improving asset turns

Citi On Trent 

• Maintain Buy with Target Price of Rs 7,600

• 200 store expansion per year likely doable ensuring quality/experience, economics and location

• New stores reach very high throughput/maturity within 12-24 months of opening

• Majority of the SSSG for Trent is volume driven as Trent does not take price hike

• Value retail is not a zero-sum game and there will be multiple winners

• Trent barely consolidate/closes store due to store economics

BofA On Aviation

• India: Geopolitics & AI 171 to weigh on the summer peak

• Indian air traffic growth averaged +8% YoY in H1 June showing some lingering impacts from geopolitical booking cancellations

• Can't rule out the muted summer peak traffic growth continuing into H2 June

• Tragic loss of Air India 171 likley to have some impact on travel demand through H2 June

Goldman Sachs On Larsen & Turbo 

• Maintain Neutral; Hike Target Price to Rs 3,400 from Rs 3,260

• Expect a good quarter; all eyes on international execution

• Expect healthy double digit growth in revenue, Ebitda and PAT driven off a strong order book

• Expect 20 basis points improvement in core Ebitda margin at 8% vs 7.8% in Q1FY25

• Will closely look at commentary on Middle East given the increasing geopolitical uncertainty in the region

BofA Global Fund Manager Survey

• Investor sentiment recovers to pre-Liberation Day “Goldilocks bull” levels as trade war & recession fears abate

• BofA Global FMS investor sentiment improves to 3-month high

• Cash level drops to 4.2% versus 4.8% in April, but not worrying low

• Fund Manager Survey most underweight the US dollar in 20 years

• 3 most contrarian trades based on FMS sentiment are long US dollar, short gold; long US, short EU stocks; long consumer, short banks

Goldman Sachs On BSE

• Maintain Neutral; Cut Target Price to Rs 2,430 from Rs 2,490

• Moving expiry day to Thursday, BSE could lose 3 percentage points of market share

• Cut BSE's FY26 EPS by 2%, but FY27/28 EPS estimates are largely unchanged

• Risk-reward seems balanced to us

UBS On BSE

• Maintain Buy with Target Price of Rs 2,633

• New expiry day can impact BSE's market share gain momentum

• Change in expiry mathematically can impact 15% of volumes on loss of one trading day for BSE

• We expect gain in volumes on non-expiry day for BSE negating some loss of volumes due to change in expiry day

Jefferies On BSE

• Maintain Hold with Target Price of Rs 2,900

• Expiry day shift may impact vols a tad; Scope to mitigate impact

• Our interactions with mkt participants indicate a 5-10% impact on vols in the near-term and build-up thereafter

• BSE's ability to build liquidity in longer-term contracts can offset this impact

• Implementation of common contract note can aid mkt share in the cash segment

• Trim EPS est by 1-2% to factor tad lower volumes

Nomura On IndusInd Bank

• Upgrade to Buy from Neutral; Hike Target Price to Rs 1,050 from Rs 700

• Navigating the storm, charting a course for revival

• Legacy issues addressed; RoA to improve to 1% by FY27F

• Clear intent to “start FY26F on a clean slate” are crucial positive signs

• RBI's potential approval for the promoter to raise stake in the bank could allay some investor concerns

Jefferies on Nykaa

• Maintain Buy with Target Price of Rs 240

• Nykaa mgmt presented a positive outlook

• BPC is a compelling opportunity and Nykaa aims to grow ahead of the online industry despite market leadership

• Fashion plays in a niche market and management remains confident on its long term potential

• Overall margins should expand over the medium-term but growth is a priority

• Wellness is also expected to gain management focus

Citi On Hexaware

• Initiate Buy with Target Price of Rs 980

• Well positioned anchored by solid mgmt. team, strong client relationships, healthy deal pipeline and entry in new geographies

• See decent growth, stable margin outlook, cash generation and lower valuations

• Consistent execution on growth – revenue gap vs. peers to narrow

• Successfully navigating challenges in some of the top clients

• Any near-term correction could make it relatively attractive

• Hexaware is the only Buy in the sector under coverage

UBS On Voltas

• Maintain Buy with Target Price of Rs 1,725

• Early monsoon impacted sales; but priced in

• Pricing not seeing a disruption but higher value added being offered

• Despite weak demand capex plans on track; VoltBek JV performing well

• RAC to remain a fastest growing category albeit a non linear growth

Nuvama On Voltas

Maintain Hold; Cut Target Price to Rs 1,190 from Rs 1,250

Voltas highlighted:-

• 20–25% YoY dip in RAC volumes industry-wide and a similar trend for itself

• Witnessed pickup in June, particularly in north

• Channel inventory of six–eight weeks

• Freebies (installation, warranty, etc) being rolled out by players

• Voltas retained its medium-term target of gaining market share

• Expects international EMP to stay weak (no new orders in FY25) while domestic shall see a pickup in order inflows and execution in FY26E/27E