Brokerage Views: CLSA, Jefferies On Airtel, UBS On Colgate Palmolive And More

Brokerages have JK Cement Ltd., Devyani International Ltd. and Siemens Ltd. among others on their radars 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 Wednesday.

CLSA On Bharti Airtel

Retains 'buy', target price revised to Rs 1,540 apiece from Rs 1,370, upside 19.7%
4Q FY24 India revenue ahead of estimates.
Hit from currency devaluation in African business.
Average revenue per user was up 8% YoY.
Lifts FY25/26 India revenue/Ebitda estimates by 1%/ 3%.

Also Read: Bharti Airtel Q4 Results Review: Analysts Raise Target Price, Earnings Estimates

Jefferies On Bharti Airtel

Retains 'buy', target price revised to Rs 1,590 from Rs 1,300, upside 23.5%
Strong subscriber additions and higher mobile ARPU surprised positively.
Lower-than-expected margins in Africa due to currency devaluation
Raises revenue/Ebitda estimates by up to 5%.
Expects 15/16% compound annual growth rate in revenue/Ebitda over FY24–27.
Moderating capex should support deleveraging of $6bn over FY25/26 and boost returns

Also Read: Bharti Airtel Q4 Results Review: Analysts Raise Target Price, Earnings Estimates

Citi On JK Cement

The brokerage maintains 'sell' on the company and cuts the target price from Rs 3,625 apiece earlier to Rs 3,550, implying a potential downside of 9% from the previous close.
Fourth-quarter results impacted by weaker realisations.
Price hikes are expected only after Q3 FY25.
Citi has a negative stance on elevated competitive intensity, near-term demand slowdown.
Management expects over 10% volume growth in FY25.
Limited exposure to east, south helped with lower realisations versus peers.
Lower FY25–26 Ebitda by 5–10% on recent cement pricing trends.

Also Read: Stock Market Live: Nifty, Sensex Erase Gains As HDFC Bank, L&T, Sun Pharma Drag

Nuvama On Devyani International

The brokerage maintains 'buy' on the company with a target price of Rs 212 apiece, implying a potential downside of 35% from the previous close.
Fourth quarter saw negative same-store sales growth for core business.
KFC brand margins stable QoQ, Pizza Hut margins lowest since initial public offering.
Cuts FY26 earnings by 6% on soft demand, muted same-store sales growth.
PVR partnership gives early access and cross promotion.

Emkay On Devyani International

The brokerage maintains a 'reduce' rating with a target price of Rs 160 per share, implying a potential upside of 1% from the previous close.
Strong margin execution, but recovery still seems uncertain.
Sees FY25 as a mid-teen Ebitda-growth year.
Lack of near-term triggers.

Nuvama On Siemens

The brokerage maintains 'buy' with a target price of Rs 7,700 per share, implying a potential upside of 15% from the previous close.
Beats consensus profit by 46%, Ebitda margins expansion of 250 basis points.
Order inflows fell 9% but maintained Rs 5,000 crore run rate.
Mid-high-teen margins sustainable given operating leverage/pricing benefit/cost efficiencies.
Raises FY24/25/26 earnings-per-share estimates by 8%/21%/29%.

Jefferies On Siemens

Jefferies maintains 'buy' on Siemens; target price raised to Rs 8,000 apiece from Rs 5,575 earlier, a 21% upside.
Capex 50% higher than company has in the last seven years.
Additional capex of Rs 333 crore announced for smart infra business.
Capex of Rs 186 crore for train manufacturing facility.
Clean demerger of power division has potential to create additional .
Operating leverage-linked upside surprise fairly high.
Transmission order of over Rs 50,000 crore awarded in last 12 months.
Large orders to pick up after elections.

Nuvama On Colgate Palmolive

Nuvama retains 'buy' on Colgate Palmolive India Ltd. with a price target Rs 2,910 apiece, implying a potential upside of 3%.
The company's Q4 results were ahead of Nuvama's estimates.
Strong domestic growth of 10%, led by toothpaste.
Rural market displayed positive signs of demand recovery outperforming urban
Gross margins expanded 244 bps YoY at 69.3%.
Ebitda margins expanded 226 bps at 35.7% despite ad spends
Nuvama will await conference call for checking on Colgate's approach to inorganic growth strategies.

UBS On India Chemicals

Expects modest recovery in the chemical cycle in terms of volume and price.
India's chemicals sector is relatively small and could increase its share in the global market.
Earning expectations seem to have built in recovery from the current downcycle.
Expects the destocking cycle to end shortly, this will support revival in Indian cos.

Initiates Buy on:

PI Industries Ltd. with target price of Rs 4,800 apiece, upside 31.3%
Prefers PI due to its strong growth, management track record, scale-up of pharma vertical.
Navin Fluorine International Ltd. with target price of Rs 4,250, upside 27.8%.
Navin is leveraging growth opportunities in agrochemicals, contract manufacturing organisation and third/fourth-generation refrigerants.

Sell on:

Aarti Industries with target price Rs 615 apiece, downside 5.6%.
Aarti's greater cyclical dependency and debt levels are coupled with high near-term Ebitda guidance.
Gujarat Fluorochemicals Ltd. with a target price Rs 3,000, downside 8%.
GFL exposed to Chinese overcapacity in fluoropolymers; EV business in nascent stage.

Jefferies On Shree Cement

Jefferies maintains 'hold' on Shree Cement at a target price of Rs 29,500 apiece.
Q4 Ebitda beat estimates by 17%.
Industry-leading Ebitda per tonne of Rs 1,390.
FY24 capex at Rs 2,800 crore.
Green power mix at 55.9% vs 51.1%

Morgan Stanley On Shree Cement

Morgan Stanley maintains 'overweight' on Shree Cement at Rs 30,000 target, 15% upside.
Volumes in line, better realisations drove revenue beat.
Awaits data on power sales, which look accelerated during Q4.
Opex per tonne stood 3% lower.
Standalone Ebitda per tonne at Rs 1,392 per tonne.