Brokerage Views: Citi On Cummins India, Morgan Stanley, Nuvama On Prestige Estates

Brokerages have Prestige Estates Projects Ltd., Cummins India Ltd., Entero Healthcare Solutions Ltd. and Amara Raja Energy & Mobility Ltd. on their radar following the release of these companies' fourth-quarter results.

NDTV Profit tracks what the brokerages are putting out on specific stocks. Here are all the top calls from the brokerages that you need to know about on Friday.

Citi On Cummins India

The brokerage maintains its 'buy' call on Cummins India and raised the target price to Rs 4,384 per share from Rs 3,519 earlier, implying a potential upside of 22% from the previous close.
Strong Q4 FY24 led by domestic demand and margin expansion.
Data centres are now close to 10% of power generation revenue.
Royalty and technology fees have come down and FY25 is estimated to be at a similar level.
Management guided to double digit growth in FY25.
Growth of two times of the gross domestic product GDP — 12–16% growth over the medium term.
Increases FY25/F26 earnings per share estimates by 17/24% respectively.

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Nuvama On Amara Raja

The brokerage maintains a 'buy' on Amara Raja with a target price of Rs 1,420 per share from Rs 1,060 earlier, an upside of 19% from the previous close.
Ebitda slightly below estimate, accounting for amalgamation of Mangal Industries-related costs.
Increases EPS estimates for FY25 and FY26 by 4% each on higher revenue and margin assumptions.
Building in lead acid battery revenue/Ebitda compound annual growth rate of 9%/12% over FY24–26.
Doubling down on EVs — lithium cell facility slated to come on stream in FY26.
Ascribes three times investment value to the lithium battery business.

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Morgan Stanley On Prestige Estates

The brokerage retains its 'overweight' call with a target price of Rs 1,770 per share from Rs 1,400 apiece earlier, a 15% potential upside from the previous close.
Strong pre-sales outlook for FY25 at Rs 27,000 crore despite high base.
Driven by a strong launch pipeline and ready inventory.
Upgrade on new project additions, pricing/cost trends and completion timelines.
Update attributable pre-sales percentage assumption to 70% from 60%.
Residential launch pipeline with Bengaluru, Mumbai, National Capital Region accounting for 45%, 23%, and 20%, respectively.
Robust collection should keep net debt/equity from rising.

Nuvama on Prestige Estates

Nuvama maintains 'buy' with a target price of Rs 1,940 per share, upside of 28% from the previous close.
Plans to launch housing projects with a gross development value of Rs 60,000 crore in FY25.
Pre-sales/leasing trajectory to remain strong, with the housing cycle turning.
Aggressive annuity portfolio build-up across office, retail, and hospitality.
Pending capex of Rs 13,900 crore, Land-related capital expenditure at Rs 3,500–4,000 crore in FY25.
Management has guided for a year-on-year reduction in net debt to equity in FY25.

Jefferies On Entero Healthcare

Jefferies reiterates 'buy' with a target price of Rs 1,510 apiece, an upside potential of 50% from the previous close.
Announced acquisition of three distributors for Rs 1.7 billion and acquisition to be completed in July.
Company is looking for more acquisition opportunities.
FY25 guidance of 20% organic growth with a 100-basis-point margin expansion.
Expects incremental revenue of Rs 10 billion through acquisitions in FY25.
Return on capital employed target in the mid-teens in FY25 vs 10.2% in FY24.

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