Brokerages have reacted to the third-quarter financial results of UltraTech Cement Ltd., Dr. Reddy's Ltd. and Hindustan Petroleum Corporation Ltd.
UltraTech remains a strong pick due to its solid balance sheet, ongoing cost savings initiatives, timely capacity expansions, and superior pricing power compared to competitors, says Goldman Sachs.
Jefferies has maintained underperform rating for Dr. Reddy's and reduced target price to Rs 1,170 from Rs 1,210.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Friday:
Brokerages On UltraTech Cement
Goldman Sachs
Maintain 'Buy' and increase the target price to Rs 12,580 from Rs 12,460.
Volume growth recovery and lower costs contribute to a margin beat.
UltraTech remains a strong pick due to its solid balance sheet, ongoing cost savings initiatives, timely capacity expansions, and superior pricing power compared to competitors.
These factors position UltraTech favorably, particularly in a market that could see further consolidation.
Successful execution in turning around India Cement and Kesoram will be critical to monitor.
JPMorgan
Maintain 'Overweight' with a target price of Rs 13,470.
Volumes were in line, but flat realisations quarter-on-quarter led to a miss compared to JPM's expectations.
Cement demand and pricing are expected to improve sequentially in the near term.
Industry consolidation should provide structural support to Ebitda per metric ton over the medium term.
Jefferies On Dr. Reddy's Laboratories
Maintain 'underperform' and reduce the target price to Rs 1,170 from Rs 1,210.
Third-quarter performance missed expectations due to weak core revenue and high SG&A expenses.
Underlying revenue growth moderated to 7.5% year-on-year.
Weak performance in the US and core India sales was offset by strong results in Russia and the UK.
SG&A spend is expected to remain high in the near term.
Jefferies On HPCL
Maintain 'Underperform' and reduce the target price to Rs 295 from Rs 320.
Ebitda was 9% below expectations, mainly due to weakness in refining.
Marketing performance was in line, but LPG losses are widening.
LPG subsidy relief could provide potential upside to earnings.
The outlook for refining in 2025 is more positive, with refinery closures likely to surpass demand growth.
Investec On Adani Energy Solutions
Maintain 'Buy' with a target price of Rs 1,352, offering a potential upside of 67%.
Growth is driven by new projects, higher energy sales, and increased capital expenditure.
Ebitda growth is supported by strong revenue expansion, treasury income, and stable regulated Ebitda in AEML.
Distribution loss at AEML has shown consistent improvement.
Investec On Adani Green Energy
Maintained 'buy' with target price of Rs 2,515 and potential upside of 144%.
The company has been consistently expanding its capacity, which supports its long-term growth prospects and operational efficiency.
Profit After Tax has been bolstered by a reduction in interest costs and tax expenses, further enhancing the company's profitability.
The company has signed a Power Purchase Agreement with MSEDCL to supply 5 GW of solar power for the next 25 years, securing a stable revenue stream in the renewable energy sector.
Citi On Indus Towers
Maintained a 'buy' rating on the stock with a target price of Rs 485.
Third quarter showed strong free cash flow performance, with 90% of Vodafone Idea's past dues now recovered.
New tenancies have started contributing positively to the business.
Expects H2 FY25E FCF to reach Rs 20 per share, which could potentially be fully paid out as a dividend.
Citi On Zee Entertainment
Maintained a 'sell' rating and revised the target price to Rs 115 from Rs 118.
Weak industry trends are expected to put pressure on both growth and margin expansion.
Remains concerned about the potential impact of cost-saving measures on revenues and the company's competitive positioning.
Jefferies On Syngene
Jefferies maintained a 'hold' rating on Syngene and has reduced the target price to Rs 860 from Rs 890.
The company posted another earnings miss and lowered its guidance due to a delay in US biotech funding recovery.
Management has revised financial year 2025 revenue growth guidance to single-digits from the previous high single digits to low double digits.
Profit is expected to remain flat, marking the second consecutive year of weak growth.
Given the steep valuations, Jefferies remains on the sidelines with 2-5% EPS cuts.
Macquarie On United Spirits
Macquarie maintained an 'underperform' rating on United Spirits with a target price of Rs 1,175.
The company's results were in line with expectations, but the CEO transition remains a key monitorable.
A sharp sequential growth in standalone other income was driven by a dividend from the IPL subsidiary.
Macquarie seeks an update on demand conditions, particularly in the context of moderating urban demand.
The firm is also awaiting clarity on input cost inflation, especially concerning extra-neutral alcohol and glass
Citi On Sona BLW Precision Forgings
Citi maintained a 'buy' rating on Sona BLW, but cut the target price to Rs 630 from Rs 750.
Third quarter results showed Ebitda marginally ahead of estimates, with other income boosting PAT.
The outlook is cautious over the near term due to uncertainty in global demand.
As a result, Citi has significantly cut its estimates for the company.
Jefferies On Nippon AMC
Jefferies maintained a 'buy' rating on Nippon AMC but cut the target price to Rs 820 from Rs 850.
Third quarter results show stable core performance, with a commission rejig expected to aid yields.
Yields remained stable, and the company has rationalised commissions once again.
Estimates have been cut by 4-10% to adjust for MTM impact, AUM growth, and slower decay.
UBS On IEX
UBS maintained a 'buy' rating on IEX with a target price of Rs 260.
The company posted strong performance with 15% year-on-year revenue growth and 17% year-on-year PAT growth, slightly ahead of expectations.
Trading volumes grew, driven by the real-time market and day-ahead market.
UBS expects January 2025 volume growth to follow similar trends.
JPMorgan On KFin Technology
Maintained 'overweight' rating with a target price of Rs 1,200.
Third quarter performance was strong across all business lines.
The domestic investor solutions business continues to show strong trends.
Sustained weakness in equity markets could lead to increased near-term volatility.
Macquarie On Consumer Durables
Crompton: Maintained 'outperform'; target price cut to Rs 444 from Rs 511.
Havells: Maintained 'outperform'; target price cut to Rs 1,899 from Rs 2,046.
Polycab: Retained 'outperform'; target price cut to Rs 7,448 from Rs 7,928.
Voltas: Maintained 'neutral'; target price raised to Rs 1,595 from Rs 1,459.
Key takeaways:
Constructive outlook on stable demand and margin upside.
Industrial and capex-led electrical demand remains strong.
B2C demand should gradually improve, following an in-line third quarter.
Expects margins to improve from second quarter of calendar year 2024 lows, driven by stable demand and benign commodity prices.
Havells is the top pick.
BofA On India Strategy
Third quarter earnings are weak as expected.
Nifty: 43% of market cap done; tracking in-line so far.
IT and Energy sectors show growth of over 10% and over 9% year-on-year, respectively, while financials remain muted at over 4%.
Similarly, NSE200 is tracking in-line, in terms of topline and earnings.
Marginal Nifty EPS upgrades since Dec. 15.
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