Brokerage Views: Nomura, Citi On Shree Cement, Bernstein On L&T And More

Brokerages from Nomura to Citi and Bernstein have Shree Cements Ltd., Apollo Tyres Ltd. and Dixon Technologies 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 Thursday.

Citi On Shree Cement

Citi Research lowers the price target for Shree Cement to Rs 29,750 from Rs 30,000 earlier, marking an upside of 15%.
Brokerage maintains 'buy' on Shree Cement.
Operating profit in the March quarter rose 49% year-on-year on higher volumes, lower costs; realisations fell 3%.
Management expects financial year 2025 dispatch growth of 10–12.5% and better cost efficiency.
Volume is estimated to grow at 12% average growth through fiscal 2024–2027 and Ebitda per tonne resilience.
Brokerage awaits clarity on the reported IT Department fine, quantum suggested is 4% of the market cap.

Nomura On Shree Cement

Nomura retains its 'buy' on Shree Cement with a target price of Rs 33,400, implying an upside of 29.4% over the Wednesday closing price.
Ebitda estimate for fiscal 2025 was lowered by 4% on weaker cement realisations.
Brokerage sees demand growth slightly lower than UltraTech Cement.
Unitary Ebitda to expand by Rs 1,258 per tonne, against Rs 1,368 per tonne estimated earlier.
Lower than expected sales volume growth, lower utilisation in newer regions, pricing indiscipline in core markets, and slowed realisation growth in markets outside North India are key risks to the target.

Morgan Stanley On Apollo Tyres

The brokerage maintained 'equalweight' with a target price of Rs 472 per share.
Focus on sustainable and profitable growth helped improving free cash flow and RoCE.
EPR provision of Rs 68 crore and weak EU distribution margins drove the miss.
Domestic tyre industry is showing signs of demand recovery.
Expects the PCR replacement segment to grow by double digits.
See margin pressure going ahead due to EPR, RM prices

Citi on Apollo Tyres

Citi Research maintained its 'buy' call with a target price of Rs 570 per share, an upside of 21% from the previous close.
Extended producer responsibility provision mars results, and the outlook is cautiously optimistic.
Despite extended producer responsibility, standalone results were below estimates.
Management is cautiously optimistic; India demand growth is expected to revive post elections.
Europe Union outlook appears relatively more positive.
Cut estimates to reflect a more conservative demand outlook.

JM Financial On Apollo Tyres

JM Financial maintains its 'buy' rating with a target price of Rs 550 per share, implying an upside of 16% from the previous close.
Extended producer responsibility liability had an impact of 110 basis points on consolidated margins.
Overall replacement demand is expected to grow by a high single- or low double-digit during fiscal 2025.
A recent 3% price hike in May 2024 is expected to partially mitigate RM increase.
Capex intensity is expected to be low in the medium term.
Marginally tweaked fiscal 2025 and 2026 estimates to account for a higher tax rate than expected.
Consistent focus on driving profitable growth .
Deleveraging and improving the return on capital employed are expected to support the stock's performance.

Bernstein On L&T

The brokerage maintained its 'outperform' on L&T with a target price of Rs 3,800 per share, implying an 11% upside from the previous close.
The company has set a guidance of 10% order inflow growth and 8.25% core margin, which is the lowest in the last decade.
Never in the last nine years has L&T met both margin and order inflow guidance.
In six of the nine cases, L&T missed margin guidance.
The size of the miss has been the highest in the last couple of years.
What matters now for the company is the return on equity and working capital cycle.

Morgan Stanley On Adani Ports

Morgan Stanley maintained its 'overweight' rating on the company with a price target of Rs 1,517 apiece, implying a 13.4% upside from its previous close.
F29E targeted growth ahead of estimates for both ports and logistics business.
The brokerage sees over two times port revenue and Ebitda growth for F29E.
Return on Capital Employed of all major ports targeted to be above 20%.
About seven times logistics revenue and Ebitda growth over FY29E.

Citi On Bharti Airtel

The brokerage maintained a 'buy' call with a target price of Rs 1,520 apiece, implying an upside of 15.5% from the previous close.
Fourth-quarter performance was broadly in line with estimates.
Strong subscriber additions in India operations.
Management reiterated its guidance of moderation in FY25E.
Triggers include Tariff hikes and reduction in AGR debt.

Nuvama On Dixon Technologies

Nuvama maintained its 'hold' position on the company, setting a target price of Rs 7,875 per share, up from its previous price of Rs 5,700 per share. This implies a 2.4% potential downside.
The company has increased its profit after tax estimates for fiscal 2025 and 2026 by 19% and 30%, respectively, due to upward revisions from new customer additions in Q4.
Positive on mobile-led high growth narratives.
Despite lower margins in the mobile business, large client wins could lift the topline to Rs 38,400 crore by financial year 2026.

Citi On Oberoi Realty

Citi maintains its 'neutral' rating for Oberoi Realty with a target price of Rs 1,649, implying a 4.8% upside from its previous close.
Valuations are expensive, and Citi expects more pre-sales velocity pickup.
Margins will likely sustain or get better going forward.
The company continues to enjoy a comfortable leverage and cash flow situation.

Citi On Somany Ceramics

Citi maintained its 'buy' with a target price of Rs 914 per share, an ipside of 46% from its previous close.
Despite Weak demand, company strengthened working capital cycle days, pared down debt.
Confident of outgrowing industry, expects low double-digit volume growth.
Stronger focus on Balance sheet strengthening .
Given current muted demand, Citi trimmed FY25E/26E earning per share by 4%/6%.

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