Brokerage Views: Citi On M&M, Jefferies On Trent, TBO Tek And More

Brokerages are talking about Trent Ltd., Mahindra and Mahindra Ltd., and TBO Tek Ltd., this Friday morning driven by second quarter earnings.

Trent’s ongoing momentum in revenue and profitability amid a challenging consumer environment has led Motilal Oswal Financial Services Ltd. and Nuvama to maintain 'buy' ratings, but they are worried about the softening in growth, due to slowdown in store expansion.

Mahindra and Mahindra continues to remain in focus for Nuvama and Nomura, due to robust demand across key models and the company’s consistent market leadership in the SUV segment, despite a few adjustments in growth guidance.

Jefferies, initiated coverage on TBO Tek, citing potential for the online travel operator, forecasting strong growth driven by increasing demand in the travel sector.

Meanwhile, Citi’s outlook on the Indian economy highlights resilience and recovery potential in the second half of 2025, noting that India’s growth trajectory remains attractive despite global economic challenges.

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 Friday.

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Emkay On Mahindra & Mahindra

Emkay downgraded Mahindra & Mahindra to ‘reduce’ from ‘add’ with a target price of Rs 2,700 per share, reflecting a 10% downside.
Projected muted passenger vehicle growth compound annual growth rate of around 4% from 2025 to 2027, driven by industry challenges and slowing SUV launches.
Reports second-quarter margin decline by 70 basis points quarter-on-quarter to 14.3%, citing lower gross margins and higher expenses.
Revises tractor guidance to 6-9% year-on-year growth for November-March, up from 5%.

Also Read: M&M Q2 Results Review: Most Brokerages Positive After Q2 Results, Await Thar Roxx Launch

Nuvama On Mahindra & Mahindra

Nuvama retained its ‘buy’ rating on Mahindra and Mahindra with a target price of Rs 3,700 per share, implying a 27% upside.
Expects strong demand for models such as Thar, XUV3XO, and Scorpio to drive auto's revenue compound annual growth rate of 16% through 2024 to 2027.
Anticipates a farm segment revenue recovery with a compound annual growth rate of 11%, assuming normal monsoons.
Revenue and core earnings growth forecasted at 15% and 18% CAGR over the same period.

Nomura On Mahindra & Mahindra

Nomura retained its ‘buy’ rating on Mahindra & Mahindra with a revised target price of Rs 3,664 per share, indicating a 26% upside.
Cost reductions and improved mix support margins despite price cuts.
Maintained high-teens volume growth guidance for 2025, driven by SUV launches.
Projects SUV segment to achieve 15% compound annual growth rate through 2027, outperforming industry growth.
Raised earnings per share estimates for 2025, 2026, and 2027 by 9%, 1%, and 3%, respectively.

Also Read: M&M Q2 Results Review: Most Brokerages Positive After Q2 Results, Await Thar Roxx Launch

Citi On Mahindra & Mahindra

Citi retained a 'buy' rating on Mahindra and Mahindra, adjusting the target price to Rs 3,520 per share, a 21% upside.
Potential short-term margin pressures linked to battery electric vehicle launch.
Adjusts revenue and Ebitda estimates upward.
Earnings estimates revised down by 0-2% for the financial years ending March 2025-2027.
Update incorporates latest share prices of listed subsidiaries.

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Motilal Oswal On Trent

Motilal Oswal reiterated its ‘buy’ rating on Trent with a target price of Rs 8,200 per share.
Notes Trent's resilience despite weak discretionary demand.
Reduced revenue and Ebitda estimates for standalone financials by 5-6% for financial years 2025 and 2026.
Profit after tax estimates are broadly unchanged.
Projects compound annual growth rate of 34%, 37%, and 30% in revenue, Ebitda, and profit after tax from 2024 to 2027, respectively.

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Nuvama On Trent

Nuvama maintains its ‘buy’ rating on Trent with a revised target price of Rs 7,475 per share, reflecting a 15% upside.
Notes sub-50% growth for the first time since the fourth quarter of 2021.
Trims revenue, Ebitda, and profit after tax estimates by 3%, 4%, and 2% for financial years 2025 and 2026, respectively.

Jefferies On Trent

Maintained its 'hold' rating on Trent, with a target price of Rs 5,900 per share, reflecting a 15% downside.
Adjusts estimates downward slightly.
Despite missing high expectations, growth remained robust.

Also Read: Trent Q2 Review - Robust Growth, Albeit Weaker Than Lofty Expectations On Store Consolidation: Motilal Oswal

Jefferies On TBO Tek

Initiated a 'buy' rating on TBO Tek, setting a target price of Rs 2,000 apiece, indicating a 24% upside.
TBO is expanding into new international markets, including India.
Gross transaction value is projected to drop to around 40% by the fiscal ending March 2027.
Global travel aggregation opportunities, combined with operating leverage, are expected to drive a compound annual growth rate of 20-31% for gross transaction value, revenue, and profit after tax over the financial years ending March 2024 to 2027.
Expects a 20% CAGR in gross transaction value, with Air and Hotel segments growing at 6% and 32%, respectively.
Current valuation remains viable, supported by strong growth prospects for TBO.
Values TBO at 55 times Earnings Per Share by September 2026.

Also Read: Jefferies Initiates 'Buy' On TBO Tek As It Expects Benefit From Fragmented Outbound Travel Market

Emkay On Indian Hotels

Emkay maintained an 'add' rating on Indian Hotels, setting a target price of Rs 700 per share, representing a 2.4% upside.
Management remains confident about achieving double-digit revenue growth.
Upcoming wedding season over the next two months is expected to drive growth.
Favourable demand-supply dynamics are likely to support growth in the medium term.
Increased Ebitda estimates for the financial years ending March 2025-2027 by 7-13%, incorporating TajSATS consolidation.

PhillipCapital On Indian Hotels

PhillipCapital maintained its ‘buy’ rating on Indian Hotels with a target price of Rs 785, reflecting a 15% upside.
Expects double-digit revenue growth to accelerate in the second half of financial year 2025.
Sees hotel segment growth increasing by 1.0-1.5%, aided by Cricket World Cup demand.
Anticipates improved margins from operating leverage and reduced losses in the international portfolio.
Raises revenue estimates by 1.6% and 1.9% for financial years 2025 and 2026, respectively.

Also Read: Indian Hotels Q2 Results: Profit More Than Triples, Revenue Up 27%

Nuvama On Gujarat Gas

Nuvama retained a 'buy' rating on Gujarat Gas, lowering the target price by 11% to Rs 663, indicating a 22% upside.
Second-quarter results exceeded expectations by 3-4% due to margin expansion from a favourable volume mix.
Ebitda margin at Rs 6.4 per standard cubic meter, supported by strong realisations.
Mixed outlook for the third quarter due to narrowing price premium in Morbi relative to propane.
Third quarter expected to be mixed, with volume growth potentially offset by elevated spot liquefied natural gas prices.
Management raised fiscal 2025 Ebitda per unit guidance to Rs 5–6 from Rs 4.5–5.5.
Maintained fiscal 2025 volume growth guidance at 5-7%.
Adjusts Ebitda estimates downward for the financial years ending March 2025-2026 by 1% and 8%, respectively.

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Motilal Oswal On Apollo Hospitals

Motilal Oswal reiterated a 'buy' rating on Apollo Hospitals, setting a target price of Rs 8,660 per share, indicating a 17% upside.
Raised earnings estimates, factoring in reduced marketing expenses at Healthco, increased patient flow in hospitals, and additional revenue from new insurance products.
Company is enhancing its healthcare services by expanding bed capacity through inorganic, brownfield, and greenfield methods.

Also Read: Apollo Hospitals Q2 Results Review - Hospital Business, Apollo 24/7 Drive Earnings: Motilal Oswal

Macquarie On Cummins India

Macquarie maintained its ‘outperform’ rating on Cummins India with a target price of Rs 4,370 per share, reflecting a 24.2% upside.
Exceeds revenue, Ebitda, and profit after tax estimates by 13%, 10%, and 7%.
Domestic sales growth partly aided by low base in power generation.
Ebitda margin slightly below estimates at 17.9%.

Jefferies On Emcure Pharmaceuticals

Jefferies maintained its ‘buy’ rating on Emcure Pharmaceuticals with a target price of Rs 1,660 per share, indicating a 15% upside.
Highlights in-house drug development capabilities and international expansion strategy.
Expects India business to outperform industry growth, with strong order book in antiretroviral and biosimilars markets.

Also Read: Emcure Pharmaceuticals Q2 Results: Profit Jumps 39%, Revenue Up 20%

Motilal Oswal On Avalon Technologies

Motilal Oswal retained its ‘buy’ rating on Avalon Technologies with a target price of Rs 920 per share.
Strong performance in US business, up 57% year-on-year, with India up 16% year-on-year.
Operating profitability improves by 470 basis points, aided by production shift from US to India.
Anticipates strong second half, driven by US restocking and Indian business growth.
Increases earnings per share estimates for 2025 and 2026 by 36% and 10%, respectively.

Citi On Endurance Technologies

Citi maintained a 'buy' rating on Endurance Technologies with a target price of Rs 3,200 per share, indicating a 31% upside.
Quarterly results aligned with expectations; positive outlook.
Revenue growth supported by new order wins and expansion into new segments.
Company expanding capacity across key segments.
Cautious outlook on the European Union market, though company may outperform.

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Citi On Page Industries

Citi maintained a 'sell' rating on Page Industries, increasing the target price to Rs 35,800 from Rs 33,100 per share, projecting a 20% downside.
Better-than-anticipated cost management resulted in a 21% year-over-year increase in Ebitda and a 30% rise in profit after tax.
Remains cautious given the absence of near-term initiatives expected to drive growth.
Raised EPS estimates for the financial years ending March 2025-2027 by 4-7%.
Current valuation stands at 61 times and 53 times price-to-earnings for financial years ending March 2026 and 2027, respectively, which appears high.

Investec On Astral

Investec maintained its ‘buy’ rating on Astral with a target price of Rs 2,485, indicating a 39% upside.
Notes year-on-year volume decline against larger peers, though quarter-on-quarter spread improvement is positive.
Management focuses on profitable growth and quality over volume.
Lowers volume guidance but maintains margin profile, supported by regulatory tailwinds and expected resin price increases.

Citi On Indian Economy

Expects headline inflation to reach approximately 6.3% year-over-year in October 2024.
Vegetable prices may continue to show above-trend growth in October 2024.
Anticipates sustained high prices for edible oils.
Food grain price momentum was subdued in October 2024.
Upside risks of 60-80 basis points to Reserve Bank of India’s December quarter forecast could reduce the likelihood of a rate cut in December.

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