Major brokerages, from Citi to Emkay, have Bharat Electronics Ltd., GAIL (India) Ltd., and Mahanagar Gas Ltd. on their radar following the 2024 election outcome and the Petroleum and Natural Gas Regulatory Board's draft regulation that seeks to bring liquefied natural gas terminals in the country under its purview.
With the National Democratic Alliance winning a majority in the Lok Sabha elections, focus on the defence sector could continue. However, the slim margin-win could also mean fiscal slack in response to this result, analysts say.
Here are all the top calls from analysts that you need to know about on Friday.
Motilal Oswal On Bharat Electronics
The brokerage maintained a 'buy' rating, with a target price of Rs 310 per share, implying an upside of 13% from the previous close.
Expects upcoming government policy focus on capex and defence to continue.
Defence will continue to be a key focus area for the government.
There is focus on indigenisation, higher private sector participation, and increasing defence exports, which is expected to continue.
Bharat Electronics is ideally positioned to benefit from continued defence spending.
The company’s order inflows for financial year 2024 was far ahead of its guidance.
Like BEL's strong order book, stable gross margin and efficient control over working capital.
Emkay Global On Policy Confluence
Bhartiya Janata Party is down but not out and can expect some fiscal slack in response to this result.
Special status for Andhra Pradesh and Bihar is unlikely.
Coalition politics will reduce the BJP’s dominance and lead to more compromises than in the past.
The party's loss could be attributed to lower turnout by core voters and a shift of voters at the bottom of the pyramid.
Expenditure mix to shift toward revenue expenditure for rural and overall consumption.
Citi On India Gas
Petroleum and Natural Gas Regulatory Board issued draft regulations seeking to increase regulatory oversight on LNG terminals.
Move creates uncertainty of Petronet LNG Ltd.'s current strong pricing power.
Maintains cautious view on Petronet LNG, with preference for Gail India Ltd., Indraprastha Gas Ltd. and Mahanagar Gas Ltd.
Potential LNG terminal oversight to lead to better transparency.
Regulatory oversight to improve the bargaining power of Petronet LNG's offtakers (GAIL, IOCL, BPCL).
Morgan Stanley On Chemical stocks
Sector still not out of the woods.
Remains on the sidelines until an earnings upgrade cycle.
Remains cautious on specialty chemicals; prefer refiners, gas utilities, select commodity chemicals.
Recovery acceleration is still pegged for the second half of financial year 2025, especially for agrochemicals.
Downgrades SRF Ltd. to 'equal weight' and cuts target price to Rs 2,115 per share versus Rs 2,557 apiece earlier, implying a downside 8% from the previous close.
Downgrade Aarti Industries Ltd. to 'equal weight', target price at Rs 613 per share versus Rs 575 apiece, a downside of 3% from the previous close.
Down Tata Chemicals Ltd. to 'under weight', target cut to Rs 843 apiece versus Rs 904 per share, a downside of 13% from the previous close.
Motilal Oswal on Indian EMS Sector
Maintains 'buy' on Kaynes Technology India Ltd. with a target of Rs 3,680 per share target (18.7% upside).
Maintains 'buy' on Avalon Technologies Ltd. with a target of Rs 570 apiece (19% upside).
Maintains 'buy' on Cyient DLM Ltd. with a target of Rs 840 per share (28% upside).
Maintains 'buy' on Syrma SGS Technology Ltd. with a target of Rs 535 per share target (17.8% upside).
Maintains 'neutral' stance on Data Patterns India Ltd. with a target of Rs 2,760 apiece (5% upside).
Kotak Institutional Equities On IndiGo
Kotak Institutional Equities rates 'buy' on InterGlobe Aviation Ltd., and raised price target to Rs 5,700 per share from Rs 5,100 apiece, 32% upside from the previous close.
Could make new highs on spreads, a key upside risk.
Most challengers to IndiGo could see another year of stiff losses.
Sees 2% higher yields over FY25-27 despite 6% decline in crude prices versus fiscal 2024.
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