Brokerage Views: HUL, TVS Motor, Adani Green In Focus For Analysts At Emkay, Morgan Stanley And More

Adani Green Energy Ltd., Hindustan Unilever Ltd., and TVS Motors Ltd. are on the radar of brokerages on Thursday on the back of earnings and business updates.

Emkay noted Adani Green Energy's strong second-quarter results, driven by an increase in consolidated Ebitda, alongside management's optimistic capacity commissioning estimates.

Meanwhile, HUL is facing mixed reviews; while Jefferies maintains a bullish outlook, other firms like Morgan Stanley express caution due to weaker volume growth trends.

TVS Motor, on the other hand, is under scrutiny for its performance amid rising valuations, with Emkay retaining an 'Add' rating despite a slight miss on Ebitda expectations.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Thursday.

Also Read: ITC, NTPC, IndusInd Bank, JSW Energy Q2 Results Today — Earnings Estimates

Morgan Stanley On HUL

Rate the stock 'Underweight' with a target price of Rs 2,110 apiece, implying a potential downside of 21% from the previous close.
Headline volume growth was weak.
HUL’s market share recovered faster than management’s earlier estimate to over 60%.

Jefferies On HUL

Retain a 'Buy' rating on the stock and a target price of Rs 3,130 apiece, implying a potential upside of 17% from the previous close.
Trim Earnings Per Share estimates by 3%.
Current demand trends are likely to continue.

Also Read: HUL Q2 Results Review: Urban Demand Woes, Pricing Pressures Drag Earnings Projection Lower

Citi On HUL

Retain a 'Buy' rating on the stock and a target price of Rs 3,400 apiece, implying a potential upside of 27% from the previous close.
Trim fiscal year 2025-2027 earnings estimates by 2-4%.
Company’s self-help initiatives could drive a turnaround.
Expect volumes to improve gradually, led by focus on the core portfolio, premiumisation, innovation, and improving presence in future channels.
Incremental price hikes in tea and soaps should drive low single-digit pricing growth in the second half.

Nuvama On HUL

Retain a 'Buy' rating on the stock and a target price of Rs 3,395 apiece, implying a potential upside of 27% from the previous close.
Gradual rural recovery along with pricing growth expected in the second half of fiscal year 2025 and fiscal year 2026.
Gradual rural recovery bodes well for HUL’s long-term growth trajectory.
Marginally trim fiscal year 2025 and fiscal year 2026 EPS estimates.

Investec On HUL

Retain a 'Hold' rating on the stock and a target price of Rs 2,837 apiece, implying a potential upside of 8% from the previous close.
Weaker-than-expected growth trends.
Expect improved revenue growth driven by pricing.
Volume growth will not exceed 4-5% in the next quarters.
Cut earnings estimates by 1.3%-2.4%.

Also Read: HUL Q2 Results: Profit Drops Amid Urban Demand Softness; Price Hikes Likely

Citi On Paytm

Upgrade to a 'Buy' rating on the stock with a target price of Rs 900 apiece from Rs 440 earlier, implying a potential upside of 19% from the previous close.
National Payments Corporation of India's approval removes a key headwind for Paytm’s growth recovery.
Regulatory risks now appear largely behind.
Monthly Transacting Users should bottom out in the third quarter.
Significant beat in the second quarter due to a huge reduction in opex.
Raises estimates and multiple to 42x Enterprise Value/Adjusted Ebitda, rolling forward to September 2026.

Also Read: Paytm Gets 'Buy' Upgrade From Citi After NPCI Regulatory Clearance

Emkay On TVS Motor

Retain an 'Add' rating on the stock and a target price of Rs 2,600 apiece, implying a potential downside of 2.3% from the previous close.
Strong underlying margins; high valuations limit upside.
Posted a 3% miss on consensus Ebitda amid 2% lower Average Selling Prices quarter-on-quarter.
Lower ASP due to the introduction of a lower-priced EV-2W variant.
Management indicated healthy 11% industry growth during Navratras versus 4% during the festive season so far.
Expect improvement during the Dhanteras-Diwali period.
Third quarter industry growth expected at 7-8% year-on-year.
Marginally trim fiscal year 2026-2027 EPS estimates.

Jefferies On TVS Motors

Retain a 'Buy' rating and reduce the target price to Rs 3,270 from Rs 3,400, implying a potential upside of 27% from the previous close.
Good growth despite a slight Ebitda miss with 20% YoY Ebitda growth, 4% below estimates.
Ebitda margin rose 20 basis points QoQ to a new high of 11.7%.
Management expects domestic two-wheeler growth of 7-8% in the third quarter, with TVS anticipated to outpace industry growth.
Volume growth was 14% YoY, while ASP fell 2% QoQ.
Ongoing festive season showed a strong start with registrations up 12% YoY in the first ten days.
TVS plans to launch an electric two-wheeler and an electric three-wheeler in the second half of fiscal year 2025.
Expect industry wholesale volumes to grow at 14%/15%/11% in fiscal years 2025/2026/2027.
TVS' export volumes are projected to rise at a 17% CAGR over fiscal years 2024-2027, recovering from a decline in recent years.
Maintaining a positive outlook for two-wheelers, expecting margins to further improve to 12-13% in fiscal years 2025-2027.

Morgan Stanley On TVS Motors

Rating 'Equal Weight' with a target price reduced to Rs 2,253 from Rs 2,265.
Realisations declined 2.5% QoQ, attributed to the introduction of the affordable iQube variant and increased competition.
Ebitda margin was 11.7%, growing 20 basis points QoQ, despite no PLI gains recorded in F2Q25.
Standalone revenue, Ebitda, and adjusted PAT growth reported at 13%, 20%, and 28%, respectively.
Management indicated high staff costs are expected as the company invests in future technologies, adding 500 professionals in its R&D.
Capital expenditure for FY25 is guided at Rs 12-14 billion, with total investments at Rs 15 billion.
Mixed commentary on festive demand, with ongoing investments aimed at improving product offerings and technology.
TVS remains focused on steady margin expansion but faces high valuations with a FY26 estimated P/E of ~38x.

Also Read: TVS Motor Q2 Review: Two-Wheeler Demand Revival To Help Shift To Top Gear But Valuations Weigh

Emkay On Adani Green Energy

Retain a 'Buy' rating on the stock and a target price of Rs 2,550 apiece, implying a potential upside of 50% from the previous close.
Consolidated Ebitda rose 25% year-on-year on stable operating performance and a jump in equipment sales.
Consolidated net profits fell due to an increase in minority interest.
Management estimates 2GW/4GW renewable energy capacity commissioning in the third quarter of fiscal year 2025.
Guide an annualised Ebitda run-rate of Rs 10,800 crore for the current 11.2 GW capacity.
Guide an annualised Ebitda run-rate of Rs 16,000 crore for 17GW by the end of fiscal year 2025.
Trim fiscal year 2025 Ebitda by 7% to reflect the first half run-rate.
Largely retain fiscal year 2026-2027 Ebitda estimates.

Also Read: Stock Market Today: Nifty, Sensex Struggle To Recover From Two–Month Low As HUL, ITC Weigh

Jefferies On SRF

Retain an 'underperform' rating on the stock with a target price of Rs 1,970 from Rs 2,070 earlier, implying a potential downside of 12%.
Withdraw revenue and margin guidance for specialty chemicals, citing limited visibility on recovery.
Second quarter Ebitda was Rs 5.4 billion, down 14% year-on-year and 11% quarter-on-quarter, missing estimates by 10% and 15%.
Weak performance in chemicals with Ebit down 29% year-on-year and delays in customer registrations for Al’s.
Refgas revenues declined mid-single digits year-on-year, impacted by high Hydrofluorocarbon inventories in the US and competition from China.
Packaging films segment faced Ebit margins of 5.8%, struggling with overcapacity.
Lowering PAT estimates by 20% and 15%, respectively, reflecting a gradual recovery.
Maintaining an unfavourable risk-reward outlook with a revised price target of Rs 1,970.

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