Analysts this morning are spotlighting varied stock trends, with Citi maintaining a cautious stance on Dr. Reddy’s Laboratories Ltd. and Titan Co. amid concerns over growth and competition.
In the financial sector, Jefferies observes a favourable shift for Indian banks as liquidity pressures ease, and Emkay remains optimistic about KEC International Ltd.'s growth trajectory, buoyed by management’s confidence in margin expansion.
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 Wednesday.
Citi On Dr. Reddy's Laboratories
Maintained a 'sell' rating with a target price of Rs 1,110 per share, indicating a 13.1% downside.
gRevlimid’s contribution is underestimated by the market, according to the brokerage. Notes a lack of significant product launches from R&D pipeline in recent years, with key products facing heightened competition, challenging the US base business and margins.
Nuvama On Dr. Reddy's Laboratories
Maintained 'reduce' rating, revised target price to Rs 1,215 per share, indicating a 4.7% downside.
Expects earnings to decline by fiscal 2027, due to diminishing gRevlimid opportunity.
Reports a base business margin improvement of approximately 80 basis points quarter-on-quarter, driven by growth in Russia.
Plans a Rs 600-crore equity infusion in Russian subsidiary for working capital. SG&A expenses projected to stabilise at 27.5–28% of sales.
Jefferies On Indian Banks
Favourable conditions are emerging for banks, the brokerage said.
Notes that retail delinquencies are less severe than expected.
Cost pressures from tight liquidity and rising fund costs are easing, with any earnings impact from rate cuts expected to be short term.
Impact from revised liquidity coverage norms likely to be limited.
Nifty Bank trading at a 35% discount to Nifty, compared to a 12% average discount over the past five years.
Citi On Titan
Maintained 'neutral' rating with a revised target price of Rs 3,600 per share (previously Rs 4,110), indicating an 11% upside.
Sees a strong near-term growth outlook but remains cautious on medium-term margins and profitability, due to elevated competitive pressures and unfavourable product mix.
Cuts earnings estimates for fiscals 2025-27 by 4–6%.
Emkay On KEC International
Maintained 'add' rating and revised the target price to Rs 1,000 per share from Rs 1,050 apiece, indicating a 5.3% upside.
Reported in-line execution, though profit after tax missed estimates. The company will meet its order inflow guidance of Rs 25,000 crore, according to the brokerage.
Management expresses confidence in achieving double-digit margins by fiscal 2026.
Projects earnings decline of 12% and 10% in fiscals 2026 and 2027, respectively.
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