Brokerage Views: Citi On Eicher Motors, Gujarat Gas, CLSA On BHEL And More

Citi and Nomura are optimistic on Eicher Motors Ltd.'s new focus on volume growth, as the Royal Enfield maker posted its second quarter results. While, Gujarat State Petronet Ltd. has analysts cautious due to uncertain merger completion timelines.

NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Thursday.

Brokerages On Eicher Motors

Nomura

Upgraded to 'neutral' from 'reduce' with a target price Rs 4,391 per share from Rs 4,102 apiece, which implied a downside of 4%.
Right strategy to spend more and drive growth.
Festive industry retails were up 6-7% on the year, while Royal Enfield was up 26%.
Company has taken multiple steps to improve demand.
Overall intent will remain to drive higher volume and Ebitda growth.
Encouraged to see company shift in stance to drive volume growth rather than stick to margins.
New strategy addresses brokerage's key concern on long-term volume growth.

Citi Research

Maintained 'buy' but changed target price to Rs 5,350 apiece from Rs 5,500 earlier, an upside of 16%.
Second quarter margins below estimates led by higher marketing costs.
Management focus is on absolute profit growth, driven by volume uptick, instead of Ebitda margins.
Increased volume estimates for Royal Enfield over FY25–27E to 2-4%.
Minor cuts to earnings estimates led by higher costs.

Also Read: Eicher Motors Q2 Results: Best Ever Second Quarter Revenue, Profitability Muted

Citi On Gujarat Gas

Lowered target price to Rs 490 per share from Rs 530, which implied a 2.6% downside.
Maintained a 'sell' rating.
Target cut is due to tweaks to longer term cash flow estimates.
FY25-27 earnings estimates remain unchanged.

Citi Research On Gujarat Gas State Petronet

Lowered Gujarat Gas State Petronet's target price to Rs 360 per share from Rs 410.
Maintained a 'sell' rating, which implied a 3.3% downside.
Target cut to reflect lower value of company's holding in GGL.
Target cut post stock’s correction.
GSPL's holding company discount wider at 30% versus 20% earlier due to uncertain merger completion timelines.

Also Read: Stock Market Today: Nifty, Sensex Decline For Second Week; HUL, ITC Top Draggers

CLSA On BHEL

CLSA maintained 'underperform' on BHEL, but raised the target to Rs 205 per share from Rs 189 earlier, which implied a 11% downside.
L&T's recent success in thermal power equipment puts BHEL's market dominance under question.
CLSA raised FY25 order inflow estimate by 31% on BHEL winning 37% of NTPC awards.
Higher inflow estimate increase FY27 EPS estimate up 8%.
Future of thermal business bleak beyond FY30.
Stock remains expensive at 40 times FY26 P/E despite recent stock correction.

Jefferies On PI Industries

Has a 'buy' rating with a target price of Rs 5,100 per share, which implies an upside potential 12%.
Overall revenue met expectations.
Domestic business was in line and pharma was slightly above.
FY25 revenue growth guidance reduced to high single digits (previously 15%).
Domestic revenue down 5% affected by pricing pressure.
Pricing pressure expected to persist in upcoming quarters.
Management expects improvement in pharma in the second half of the fiscal, based on current order book.

Also Read: Hindustan Aeronautics Q2 Results: Profit Up 22%, Beats Estimates

Nuvama On Sunteck Realty

Maintained 'buy' with a target price of Rs 674, which implied a 37.6% upside.
H1 FY25 sales/collections up 31%/21% YoY.
H2 FY25 planned launches of new phases with a GDV of Rs 3,000 crore.
Growing traction in affordable housing to improve long term prospects
Company expects to double project pipeline over next three years.

Key Positives:

Net debt-to-equity of negative 0.01 times.
Pickup in business development.

Motilal Oswal Financial Service On Nalco

Motilal Oswal maintained 'neutral' rating on National Aluminium Co. and raised target to Rs 420, which implied a 91% upside.
The second quarter results broadly beat estimates on favourable pricing.
The brokerage raised FY25 revenue/Ebitda/net profit estimates by 9%/27%/32%.
It expects H2 FY25 Ebitda/net profit to grow 24%/30% YoY.
Exploration and lithium mining deal to help diversify portfolio, enhance supply chain.
Expects next growth phase after 1 metric ton alumina refinery capacity gets added by May 25.

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