Brokerage Views: Citi On Jindal Steel & Power, Morgan Stanley On Amara Rajaj And More

Brokerages have shared outlook on Amara Raja, Jindal Steel & Power Ltd., and JK Tyre & Industries Ltd. on Thursday. Morgan Stanley retained its 'underweight' rating on Amara Raja, noting slower growth in the new energy segment and telecom demand. Meanwhile, Citi maintained a 'sell' rating on Jindal Steel & Power, citing a decline in second quarter Ebitda and limited volume growth visibility.

On the other hand, Emkay maintained its 'buy' rating on JK Tyre, pointing to a strong domestic commercial vehicle segment outlook and margin recovery potential from price actions and softening rubber prices.

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.

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Citi On Jindal Steel & Power

Maintained a 'sell' rating with a target price of Rs 850 per share, implying a 10.9% downside.
Second quarter standalone adjusted Ebitda fell about 29% sequentially due to lower volumes and realisations.
Although optimistic sentiment from China exists, it may not significantly impact demand.
Anticipates Ebitda per tonne to improve, yet valuations are high.
Lack of visibility on volume growth persists despite the HSM commissioning, leading to a cut in fiscal 2025-27 Ebitda estimates by 7%, 9%, and 8%, respectively, on lower steel volumes.

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Emkay On JK Tyre

Maintained a 'buy' rating with a revised target price of Rs 650 from Rs 700 apiece, suggesting a 66% upside.
Second quarter results were impacted by weaker sales in Mexico and Latin America.
Company leads in the domestic commercial vehicle segment, which has been weak in the first half of fiscal.
Cuts fiscal 2025–2027 PAT estimates by ~18%, 10%, and 8%, factoring in second quarter miss and gradual margin recovery.
Positive outlook for commercial vehicles with expected growth in infrastructure and capex activity.
Margin recovery is expected in the last quarter, supported by softer rubber prices, a 3–3.5% pricing increase year-to-date, and a favourable mix.
Attractive valuations at 8.5 times September 2026E P/E compared to a 17.3 times peer average.

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Morgan Stanley On Amara Raja

Retained 'underweight' rating with target price of Rs 1,057 per share, indicating a 21% downside.
Strong replacement market growth offset by slower performance in the new energy segment.
Industrial volumes dropped 10% year-over-year due to weaker telecom demand.
New energy segment saw a slowdown in demand from three-wheeler OEMs.
A 2GWh NMC cell plant is expected to begin operations by end of calendar year 2026, while a tubular battery plant should enhance margins from fiscal 2025.
A 1.5% price increase was implemented in early second quarter to offset commodity costs.
Anticipates Ebitda margins of 14–14.5%, with the new energy segment targeting 11–12%.
Exports projected to grow at a 15% CAGR over the next three to four years.

Citi On PB Fintech

Retained 'buy' rating with target price raised to Rs 2,000 from Rs 1,950 apiece, indicating a 21.8% upside.
Sees an upward trend in annuity businesses, with execution of new strategies becoming crucial.
New business margins are stable across segments, with the phygital channel gaining momentum.

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Citi On Mindspace Business Parks REIT

Maintained 'buy' with target price of Rs 405, suggesting a 6.6% upside.
Portfolio expanded by ~5 million square feet to ~34 million square feet as of September.
Future growth anticipated through acquisitions from the sponsor group, with occupancy expected to stabilise at ~96% over the next 12 months.
Projects organic net operating income growth of Rs 9–10 billion over the next four years.

Macquarie On Kansai Nerolac

Retained 'neutral' rating with target price of Rs 330 per share, indicating a 16% upside.
Second quarter results missed on sales and gross margins, largely due to weak decorative demand.
However, sees strong demand in automotive and performance coatings.

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Citi On Aptus Value Housing Finance

Maintained a 'neutral' rating with a target price of Rs 358, implying a 4.9% upside.
Disbursements rebounded, supporting growth guidance, while write-offs contributed to credit growth.
Assets under management grew by 27%, with spreads remaining stable at 8.7%.

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