Brokerage Views: Citi On Zomato, Emkay On Dabur, Nomura On Tata Motors And More

Brokerages have Zomato Ltd., Dabur India Ltd. ITC Ltd. and others on their radar following the release of the earnings for the first quarter of the current financial year.

Zomato's net profit surged 45% in the April–June period, while Dabur's first-quarter profit rose in line with analysts' estimates as easing inflation allowed consumers to spend more on its personal-care products.

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

Citi On ITC

The brokerage maintained 'buy' with a target price of Rs 515 per share, implying an upside of 4% from the previous close.
ITC reported a mixed performance in first quarter with headline margin missing estimates.
Gradual volume recovery in cigarettes.
Growth acceleration in other FMCG expected.
Rural demand trends improving given moderating inflation.
Better terms of trade for farmers and expectations of normal monsoon to aid growth.
Peg ITC at ~20-25% premium to the stock’s last 5-year historical trading averages.
Believes the reasonable low double-digit earnings growth, similar to peers, justifies the valuations.

Emkay On ITC

Emkay retains 'add' with a target price of Rs 520 per share, implying an 5% upside from the previous close.
Expect the stock to stay rangebound.
A steady cigarette tax setting bodes well for legal industry volume recovery.
Sees ITC’s businesses align well with economic growth.
The brokerage awaits the next leaf tobacco cycle and cyclical recovery in other businesses.
Leaf tobacco inflation is likely to have a higher impact in coming quarters.
Lifts valuation from 18 times to 20 times.

Also Read: ITC Shares Decline After Q1 Profit Misses Estimates

Citi On Zomato

The brokerage maintains 'buy' with a target price of Rs 280 per share, an upside of 17% from the previous close.
Zomato is Citi's top India internet pick with its focus on growth and top-notch execution.
Raises gross-order-value estimates for FY25 by 1% and for FY26 by 2% for food delivery.
Raises GOV estimates for FY25 by 18% and for FY26 by 16% for quick commerce.
Estimate FY24-27E Food Delivery gross order value growth at 20% CAGR.
Expects quick commerce gross order value growth at over 50% CAGR.

Nuvama On Zomato

The brokerage maintains a 'buy' rating with a revised target price of Rs 285 per share from the earlier Rs 245 apiece. This implies an upside of 20% from the previous close.
Zomato continues to deliver on its promise of strong growth.
Improvement in profitability working in favour.
Management is not dialling down on growth ambition.
Now values food delivery at $14 billion and Blinkit at $13 billion.

Emkay On Zomato

Emkay maintains 'buy' with a target price of Rs 270 per share, a 14% upside from the previous close.
Broad-based healthy growth across segments.
Softness in food-delivery contribution margin.
Management expects 30% CAGR in next five years.
Food delivery margin dip and management expects this volatility to continue.
Most of the dark stores would be in the top 10 cities.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On Aug. 2

Emkay On Dabur

The brokerage maintains 'buy' with a target of Rs 750 per share, a 17% upside from the previous close.
Expects better mix to help enhance margins.
Sees 10% sales and 15% earnings CAGR over FY24–27.
Rural continues to grow faster than urban.
Innovation is likely to focus on expanding the addressable market.
Preferred picks in the sector, given its diversified portfolio and better execution.
Continues to report better growth given distribution expansion.

Nuvama On Dabur

The brokerage retains its 'buy' with a target price of Rs 760 per share, an upside of 18% from the previous close.
Beneficiary of rural recovery.
Likely strong winter/healthcare performance in Q3FY25 due to La Nina.
Good performance overall but heatwaves drag the beverage segment.
Margins in quick commerce are better than e-commerce.
Namaste legal cost in Q1 FY25 was Rs 18 crore and is expected to be Rs 80 crore in FY25.

Also Read: Trade Setup For Aug. 2: Bullish Outlook On Nifty To Persist After 25,000 Milestone, Say Analysts

Nomura On Tata Motors

The brokerage retained 'buy' with a target price of Rs 1,303 per share, a 14% upside from the previous close.
Consolidated Ebitda at Rs 15,780 crore was head of estimate.
Commercial vehicles margin was ahead at 11.6% versus 10.5% estimated.
Maintain that JLR's transition to luxury will support average selling price and margin.
Estimate Ebit margins at 8.5% and 8.5% for fiscal 2025 and fiscal 2026, respectively.
Expects the company to turn to net cash of Rs 145 per share by fiscal 2027.

Also Read: Tata Motors Shares Slip As Q1 Results Points To Over-Reliance On JLR

Motilal Oswal On Adani Ports

The brokerage retained 'buy' with a target price of Rs 1,850 per share, implying an upside of 16% from the previous close.
Revenue growth of 11% year-on-year in-line.
Volumes at Gangavaram port were affected by a worker strike.
Ebitda margin came in at 61% against the estimate of 58.7%.
Retained their estimates for fiscal 2025-2026.

Citi On Sun Pharma

The brokerage maintained 'buy' with a target price of Rs 1,640 per share, implying a downside of 4.2% from the previous close.
Lower R&D and selling, general, and administrative expenses helped in Ebitda margins improvement.
R&D spending is expected to inch up in fiscal 2025.
Tax rate expected to increase in fiscal 2025.
Strong trends in branded segments offset subdued Generics.
The company sounded upbeat on the speciality products outlook.

Nomura On Sun Pharma

The brokerage retained 'neutral' with a target price of Rs 1,444 per share, implying a downside of 16% from the previous close.
Ebitda was 5% ahead of their estimates due to lower other expenses.
Net earnings 8% higher than estimates due to higher other income.
Strong expectations from speciality support premium valuation multiple.
The company is entering a high-investment phase in the near term.

Citi On Credit Growth

June credit growth moderates to 13.9% year-on-year and 0.7% on a month-on-month basis.
Secured products and gold loans saw good traction.
NBFC credit growth and personal-loans growth moderated.
Credit card growth was strong at 23% year-on-year.
Retail gold loans spiked 6% month-on-month and 30% year-on-year.

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