Brokerage Views: Jefferies On Tata Steel, Citi, Motilal Oswal On NMDC And More

Brokerages have Tata Steel Ltd., Eureka Forbes Ltd., NMDC Ltd. and Capacite Infraprojects 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 Thursday.

Jefferies On Tata Steel

Jefferies maintains its 'buy' call with a target price of Rs 200 per share, implying a 14.4% potential upside.
The fourth-quarter results were weak but better than estimated.
Ebitda/tonne loss narrowed sharply from negative $191 in Q3 to negative $40 in Q4.
Fourth-quarter net debt was flattish QoQ.
Tata Steel plans to infuse $2.1bn in overseas holding company T Steel Holdings Pte.
Existing debt of $565 million provided by Tata Steel to TSHP will be converted to equity.
Funds infused will be used to repay existing external debt at offshore entities and UK restructuring costs.

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Nomura On Eureka Forbes

The brokerage upgraded Eureka Forbes to 'buy' with a target price of Rs 534 per share, an upside of 23% from the previous close.
Focus on premium launches to drive revenue growth.
Margin tailwinds in place and valuations attractive.
Reported profit was impacted by a Rs 15.1-crore loss due to a fire at a warehouse.
Weaker e-commerce channel and shift in spends impacted near-term demand.
Operating leverage should support margin improvement.
Margin has multiple tailwinds from higher service revenue, direct-to-consumer sales and operating leverage.

Nuvama On Capacite Infraprojects

Nuvama maintains its 'buy' call on Capacite Infraprojects with a revised target price of Rs 413 per share from Rs 319 apiece, implying a 35% from the previous close.
Execution rose during the quarter and management expects 25% revenue growth.
Revises FY25/26 earnings-per-share estimates upwards by 30%/32%, factoring in higher execution in future.
The Rs 2-billion qualified institutional placement eased liquidity constraints.
Values the company at 17 times the Q4FY26 earnings per share.

Citi On NMDC

Citi maintains 'sell' with a target price of Rs 215 per share from earlier Rs 180 apiece, implying a downside 16% from the previous close.
Price cut is likely soon as current domestic prices are already at a premium to export parity.
There is potential downside risk to global prices.
Limited support from domestic steel price trends.
Management expects pricing to remain buoyant on strong demand.

Motilal Oswal On NMDC

Motilal Oswal Financial Services Ltd. maintains its 'buy' call with a target price of Rs 300 apiece, a 16% potential upside.
Q4 earnings below estimates on higher operating costs and royalty and cess.
Fourth-quarter revenue was led by better realisations.
Average selling price for Q4 improved to Rs 5,174/tonne versus estimate of Rs 4,955/tonne
Two price hikes in Q1 FY25 to improve company's ASP and earnings.
Production likely to ramp up in FY25 and FY26, providing strong growth comfort.
Steel demand volume growth expected to be robust.

Citi On RR Kabel

Citi maintains its 'buy' call with a target price of Rs 2,043 per share, an upside of 18% from the previous close.
In-line numbers, but margins were largely flattish.
Revenue over the medium term could grow at a compound annual growth rate of 18–20%.
Expects margin to increase, should lead to a 27% EPS CAGR over FY24–26.
Looking at both organic, inorganic growth opportunities in the business of fast-moving electronic goods.
FMEG breakeven is possible by 1Q FY26.
Increases target P/E multiple to 48 times from 46 times earlier.

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