Avenue Supermarts Ltd., Bajaj Finance Ltd. and Fine Organics Ltd. will be in focus after they announced their second-quarter update.
Avenue Supermarts reported 14% growth on a yearly basis in its standalone revenue from operations at Rs 14,050.32 crore for the quarter ended Sept. 30, 2024 of financial year 2025.
Meanwhile, Citi's strategy on India equity said that a strong macro/growth outlook and resilient domestic inflows have been a major driver of Indian equities.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Friday.
Macquarie On Avenue Supermarts
Retained 'outperform' with a target price of Rs 5,600 per share, implying an upside of 13% from the previous close.
Sales growth below estimates.
Slower than expected store additions.
Builds 8.1% standalone Ebitda margins.
Goldman Sachs On Avenue Supermarts
Maintained a 'sell' with a target price of Rs 4,050 apiece, an 18% downside from the previous close.
Slower store addition and growth indicates a sharp slowdown in same store sales growth.
Rapid scale up of quick commerce adversely impacts Avenue’s same store sales growth.
There is risk that fiscal 2025 store addition might end up lower than management guidance.
Cuts financial year 2025, 2026, and 2027 estimates by 2%.
Morgan Stanley On Avenue Supermarts
The brokerage gave an 'overweight' rating, with a target price of Rs 5,769 apiece, a 17% upside from the previous close.
Growth below expectations.
Awaits management clarification on slower growth rate.
Topline growth led by weak same store sales growth.
JPMorgan On Avenue Supermarts
Maintained an 'overweight' rating, with a target price of Rs 5,400 per share, implying a 9.3% upside from the previous close.
Second quarter revenue growth moderation at 14% disappoints, it said.
Moderation in revenue growth due to extended rainfall and supply chain disruptions.
Finds DMart maintaining competitive pricing versus peers.
Motilal Oswal On Fine Organics
Reiterated 'sell' rating with a target price of Rs 4,095 per share, a downside potential of 21% from the previous close.
Expects its performance to be adversely affected in near-to-medium term due to:
Extended delays in commissioning new capacities.
Existing plants fully utilised with no debottlenecking potential.
Additional delays in starting commercial supplies from Thailand JV.
Expects YoY earnings decline for the next two years.
Valuations appear expensive.
Morgan Stanley On Bajaj Finance
The brokerage maintained 'overweight' with a target price of Rs 9,000 per share, implying an upside of 21% from the previous close.
Health loan growth above estimates.
Expect the company to grow at 27.3% in fiscal 2025.
New customer acquisition is better than target set by Bajaj Finance Ltd.
Expects the second quarter of fiscal 2025 to be weak due to higher credit costs and lower margins.
Expects credit costs to be at 210 basis points and 185 basis points for second half of current fiscal.
Foresees management raising credit cost guidance from the current 175-185 basis points.
Fiscal 2026 could show strong profit after tax growth.
Citi On India Equity Strategy
Chinese equities have caught up with India, both are up 19% so far this calender year.
Around rate cuts, India benefited from a strong FII inflows environment.
A higher share of China in incremental EM inflows can happen if the rally sustains.
Overall conducive environment for EM inflows reduces likelihood of significant FII outflows from India.
Strong macro/growth outlook, and resilient domestic inflows have been a major driver of Indian equities.
Remains constructive and would buy any dips.
Overweight on domestic-focused sectors.
The brokerage is overweight on banks, telecom and healthcare.
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