Brokerage Views: Jefferies On Insurance, UBS On TVS Motor, Citi On Zomato And More

Jefferies initiates coverage on GoDigit General Insurance Ltd. and Star Health and Allied Insurance Co. in the insurance sector and offers its outlook on the Indian auto sector. Nomura comments on various cement channels throughout the country.

Citi continued to remain positive on Zomato Ltd. after it said it would acquire Paytm's ticketing business, but remains bearish on Dr. Lal PathLabs Ltd. Nuvama is optimistic about the pharmaceutical sector after strong first quarter earnings.

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.

Jefferies On Insurance

The brokerage initiates coverage on GoDigit General Insurance Ltd. with a 'buy' rating and a target price of Rs 420 per share, implying a potential upside of 24%.
Initiates coverage on Star Health and Allied Insurance Co. with a 'hold' rating and a target price of Rs 550, indicating a potential downside of 10%.
Retains a 'buy' on ICICI Lombard General Insurance Co. with the target price raised to Rs 2,600 from Rs 2,180 earlier, indicating a potential upside of 25%.
Large private insurers are set to gain from the multi-year upcycle in motor.
Health can see pressure in the retail segment from rising claims frequency.
ICICI Lombard is the biggest beneficiary of motor upcycling; expect improvements in the combined ratio.
PB Fintech Ltd. is their top pick.
Claims outlook is healthy for conservative reserving.
Combined ratio to reach 100% by fiscal 2027.
Expect rising retail claims frequency from other insurance companies.
Muted volumes with pricing led to visible growth, and composite licenses increased competitive intensity in other companies.

Nomura On Cement Channel Checks

Spot prices rise by 5%, or Rs 17 per bag, pan India versus the beginning of August.
Average quarter-to-date prices are still down by Rs 14 per bag versus the first quarter average.
Prices hiked by Rs 25 per bag amid market share tussle in the southern region; absorption is a concern.
Dealers expect a Rs 22 per bag price hike in the coming days in the central region.
Trade prices hiked by Rs 17 per bag versus August-start in the northern region.
Eastern region: Trade prices increased by Rs 16 per bag, up 3% versus the start of August.
Prices improve slightly by Rs 4 per bag in the western region.

Nuvama On Pharmaceuticals

Pharma index is up 11% since May.
Pharma index is at 44% premium to Nifty, with an average of 31% premium.
Strong performance in the quarter ended June.
Strong commentary by Lupin Ltd. and Zydus Lifesciences Ltd. on the back of launches.
Forecasts raised for Lupin, Natco Pharma Ltd., Zydus, Glenmark Pharmaceuticals Ltd.; cut for Biocon Ltd.

Citi On Zomato

Maintained a 'buy' rating on the stock with the target price raised to Rs 300 per share from Rs 280 apiece, indicating a potential upside of 16%.
Acquisition of Paytm ticketing business moderately positive.
Zomato to benefit from over one crore users of Paytm's ticketing business.
Will focus on gaining segment market share.
Zomato has strong track record.

Also Read: Zomato To Shut Legends Services Less Than Two Months After Relaunching

Jefferies On Autos And Auto Parts

Ola's market share slipped from 49% in the quarter ended June to 33%.
While it still remains the topmost player, TVS Motor Co. and Bajaj Auto Ltd. gained 4% and 7% market share, respectively.
Current market share for TVS is at 19% versus 15% in the first quarter, while Bajaj now has a 18% share versus 12%.
Electric bike launch positive, currently motorcycles form 63% of volumes.
TVS I-Qube now available in five variants, looking to launch another scooter in next six months.
Hero plans to launch affordable electric scooters in fiscal 2025.
Expect the electric two-wheeler market share to rise to 13% by fiscal 2027 versus 5.4% now.
Within autos, TVS and Mahindra & Mahindra Ltd. remain top picks.

UBS On TVS Motor

Retain 'buy' rating on the stock with the target price raised to Rs 3,200, implying a potential upside of 18%.
New Jupiter is a significant upgrade from older models and peers at similar price.
Launched back in 2013 and led to significant turnaround for TVS.
Believe many of the features cannot be replicated by the competitors in near to medium term.
New model can aid Rs 15,000-20,000 additional volume growth.
Raise domestic volume forecast at 14% as compared to 11% earlier.
Another catalyst is brand new electric vehicles and foray in electric three wheelers over next few months.

Citi On Dr. Lal PathLabs

Maintained a 'sell' rating on the stock with a target price of Rs 2,700 per share, indicating a potential downside of 18%.
Improvement in mix key to drive realisations.
Deeper penetration, geographical expansion to drive volume growth.
Competition remains high, irrationality has come down.
Margins may remain stable.
Renewed focus on international markets.

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