Brokerage Views: Citi On Honasa, Jefferies On Thermax, Delhivery And More

Here are the stocks buzzing on brokerages' radar on Monday.

Honasa Consumer Ltd. was stuck in the lower circuit in early trade as its second quarter performance disappointed the street. The Mamaearth parent posted a net loss of Rs 18.6 crore against a profit of Rs 29.4 crore in the year-ago period. Citi shared a note on the same.

Jefferies cut its target price on Delhivery Ltd. as the company reported that its net profit is down 81%.

Hero MotoCorp Ltd. and Thermax are also on the radar following their second quarter results announcement.

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

Also Read: Delhivery Gets Target Price Cut From Jefferies On E-Commerce Growth Concerns, Volume Challenges

Citi on Hero MotoCorp

Retain 'buy' rating with a revised target price of Rs 6,300, implying 36% upside.
Management expects demand momentum to sustain during the festive season, with better rural performance.
Continued high spending on electric vehicles may weigh on margins.
Slightly reduce earnings estimates for the fiscal years ending March 2025 to 2027, leading to a target price revision.
Valued at 23 times projected earnings for the fiscal year ending March 2026.

Nomura on Hero MotoCorp

Maintain 'buy' rating with an updated target price of Rs 5,805, suggesting 26% upside.
Festive season retails grew 13% year-on-year, driven by strong rural demand and favorable monsoon conditions.
New product launches include three bikes and three internal combustion engine scooters within six months.
Anticipate volume growth of 7.5%, 6%, and 5% for the fiscal years ending March 2025, 2026, and 2027, respectively.

Also Read: Hero MotoCorp Q2 Results Review: Brokerages Bullish As Festive Demand, Rural Sales Drive Revenue

Citi On Honasa Consumer

Downgrade to 'sell' from 'buy' with a reduced target price of Rs 300, down from Rs 540.
Growth outlook for the Mamaearth brand remains challenging in the near term.
Slower growth expected in the near term, with potential for higher investments to weigh on margins.
Lower revenue estimates by 9-16% for the fiscal years ending March 2025 to 2027.
Now valued at 38 times projected enterprise value-to-Ebitda for the six months ending September 2026, compared to 50 times earlier.

Also Read: Honasa Consumer Q2 Results: Mamaearth Parent Posts Rs 18.6-Crore Loss

Jefferies On Thermax

Maintain 'buy' rating with a revised target price of Rs 6,100, indicating 22% upside.
Retain estimates for the fiscal years ending March 2025 to 2027, citing strong order flows and a healthy outlook.
Cost overruns in flue gas desulfurisation projects from the quarter ending June 2024 are largely over.
Revenue and margin-linked earnings per share compound annual growth rate of 28% for the fiscal years through March 2027 should drive upside.
Believe green hydrogen presents a medium-term growth opportunity.
Valuations expected to remain supported by earnings traction.

Also Read: Thermax Expects Higher Order Inflow In Second Half

Citi On Delhivery

Maintain 'buy' rating with a revised target price of Rs 330, indicating 21% upside.
E-commerce remains challenging, with subdued volume growth during the second quarter ending September 2024.
Margins were affected by increased operating expenses ahead of the festive season, impacting third-quarter revenues.
Expect e-commerce volume growth of -1% and 16% year-on-year for the fiscal years ending March 2025 and 2026, respectively.

Jefferies On Delhivery

Retain 'buy' rating with a revised target price of Rs 515, indicating 56% upside.
Weak industry growth may weigh on the stock in the near term.
Positive Ebitda momentum expected to reflect in the medium term.
Reduce revenue estimates by 5-10% for the fiscal years through March 2027.

Also Read: Stock Market Today: Nifty Falls For Seventh Session; TCS, BPCL Worst Performers