Brokerage Views: Citi On IndiGo, JP Morgan On Bharti Airtel, Hexacom And More

Citi Research and Emkay Research have InterGlobe Aviation Ltd. on their radars after the company announced its business-class offering called Indigo Stretch. Bharti Airtel Ltd. is in the spotlight of JPMorgan Chase & Co. and Goldman Sachs among others as the company reported a 128% sequential rise in net profit for the first quarter, beating analysts' estimates.

Nuvama Institutional Equities shared a note on Devyani International Ltd. after it announced its results for the first quarter of the current financial year.

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 Tuesday.

Citi On InterGlobe Aviation

Retains a 'buy' rating on IndiGo and a target price of Rs 5,200 apiece, implying a potential upside of 23% from the previous close.
IndiGo Stretch would be initially launched on 12 metro-to-metro routes.
Loyalty programme called IndiGo BluChip to offer a non-expiring points programme.
Significant revamp of digital offerings on both website and app.
Expansion target remains as per previous guidance of one aircraft per week for next 10 years.
Deliveries of the wide-body A350-900 aircraft will start in 2027.
Company could attract incremental market share.
Valuation based on 2.6 times the September 2025 EV/sales estimates, 10% premium to Indigo's five-year average multiple.

Emkay Global On IndiGo

Retains a 'buy' rating on the stock and a target price of Rs 5,300 apiece, implying a potential upside of 25% from the previous close.
Unveiled its business-class offering called Indigo Stretch.
The plan includes launching the Mumbai-Delhi route by mid-November with an introductory price of Rs 18,000.
New premium offerings include new destinations and the introduction of A321 XLRs and A350s starting from CY25 and CY27 respectively.
Support to yields over the medium term, led by premiumisation.
Retains the earnings estimates
Values at 20 times the September 2026 target price-to-earnings ratio.

Also Read: Trade Setup For Aug. 6: Nifty 50 Falls Below Budget-Day Low, Analysts Predict Continued Volatility

JP Morgan on Bharti Airtel

Maintains an 'overweight' rating on the stock and a target price of Rs 1,500 apiece, implying a potential upside of 2.1% from the previous close.
Missed on net additions.
Surprised positively on India capex stability and Ebitda.
Lower capex accelerated India Free Cash Flow to rise.
Revenue growth strong in homes, weak in business and direct-to-home.
Announced deferment of calling partly paid up shares amid strong future cash flow.
Moderating capex and deleveraging may lead to higher dividend.

Goldman Sachs on Bharti Airtel

Maintains a 'buy' rating on the stock and a target price of Rs 990 apiece, implying a potential downside of 32% from the previous close.
In line Revenue and Ebitda.
This is the 18th consecutive quarter of double digit growth.
Growth in recent quarters largely led by organic initiatives (no tariff hike).
Given tariff hike, see sharp growth acceleration.
India business expected to sustain 20% Ebitda.
Free cash flow to improve with further decline in capex and higher tariffs.
Expect Bharti Airtel to resume shareholder payout in next 12 months.

Citi on Bharti Airtel

Maintains a 'buy' rating on the stock and a target price of Rs 1,750 apiece, implying a potential upside of 19.1% from the previous close.
India performance in-line.
Consolidated performance below estimates because of African currency devaluation.
India capital expenditure showed signs of moderation, consistent with past management commentary.
This drove improvement in free cash flow generation along with deleveraging.
This has prompted Bharti Airtel to defer calling for the balance rights issue amount (75% of Rs 21,000 crore).

CLSA on Bharti Airtel

Maintains an 'outperform' rating on the stock and a target price of Rs 1,540 apiece, implying a potential upside of 4.8% from the previous close.
Positive surprise by India based revenue.
Consolidated numbers dragged down by African business.
Deferred calling balance amount on partly paid up share on strong free cash flow and capex moderation
Board feels no immediate funding requirement.
Strengthen leadership in post-paid subscribers.

Also Read: Bharti Airtel Q1 Results: Profit Doubles To Rs 4,717.50 Crore

JP Morgan on Bharti Hexacom

Retains an 'overweight' rating on the stock and a target price of Rs 1,280 apiece, implying a potential upside of 15.2% from the previous close.
Revenue in line, ahead on Ebitda, miss on profits.
Drop in capex is positive.
Net adds moderated, in line with parent Bharti Airtel and its peer Jio.
Numbers are less important than commentary on consumer behaviour to tariff hikes.
Bharti Hexacom trades at 5% discount to Bharti Airtel, offers better value.

Jefferies On Bharti Hexacom

Maintains a 'hold' rating on the stock but raised target price to Rs 1,260 apiece from earlier Rs 1230, implying a potential upside of 10% from the previous close.
Revenue and Ebitda in-line but profits miss due to higher depreciation and amortization.
Growth outlook is string but high valuations limit upside.
Expect 16% revenue compound annual growth rate in fiscal 2024-2027.
Expect Ebitda to grow at compound annual growth rate of 20% in fiscal 2024-2027.

Also Read: Bharti Hexacom Gets Second Best Target Price As JPMorgan Initiates 'Overweight'

Nuvama on Devyani International

Maintains a 'buy' rating with a revised target price of Rs 208 from earlier Rs 212, implying a potential upside of approximately 14.73%.
Negative same-store sales growth for KFC and Pizza Hut in Q1, attributed mainly to a shift in Navratra from March to April.
Quarter-on-quarter improvement in average-daily-sale levels and brand contribution.
Thailand business saw a strong quarter despite a slowdown in India due to geopolitical issues and near-term headwinds.
Raising FY25E/26E revenue and earnings before interest, taxes, depreciation and amortisation estimates by 21%/17% and 5%/4%, respectively.
Reducing target valuation from 28 times to 26 times the Q1 FY27 Ebitda due to near-term headwinds.
KFC added 21 stores, bringing the total to 617, with an annual store addition target of 100 in FY25.
Pizza Hut added only three stores due to high competition. Although its ADS stood at Rs 36,000, brand margin declined to 4.9% due to high advertising and promotion spend.
Costa Coffee added 13 stores but reported a 0.6% lower SSSG and softer margins. Has plans to add 50–60 more stores in FY25.

Also Read: Stocks To Watch: Tata Power, TVS Motor, Vedanta, Dabur, Bharti Airtel, ONGC

Nuvama On Britannia

Maintains a 'buy' rating.
Market-share gain in rural areas was 1.25 times higher than in urban areas.
Britannia posted first-quarter FY25 revenue/Ebitda/adjusted PAT growth of 6%/9%/10% YoY, in line with estimates.
Volume growth remained robust at 8% YoY, expected to sustain.
Gross margin expanded by 42 basis points YoY.
Ebitda margin expanded by 56 basis points YoY.
Significant opportunity to scale up market share in focus states where Parle's market share is three times that of Britannia, as well as the cheese market where Amul's market share is six times that of Britannia.
Route-to-market optimisation is underway, leveraging data analytics and AI.

Bernstein On India Strategy

Talks of an imminent recession have gained traction.
Unlikely that macroeconomic distress in the US becomes a global event in 2025.
Major currency impact of a US recession is unlikely.
US events are unlikely to disrupt the Indian cycle even on margins or current account.
Fundamentals of the economy don’t change even if the US were to enter recession.
The challenge India sees is internal rather than external.
Continues to hold a neutral stance on markets for now.
Underweight small to mid-cap asset class and 23,500 as our year-end Nifty target.
Will seek bottom-up opportunities through our India and SMID portfolios.

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