Brokerages have dissected the earnings of key banks like HDFC Bank Ltd. and Kotak Mahindra Bank Ltd. that came last week. Motilal Oswal Financial Services Ltd., Nuvama, Berstein and Citi have retained their bullish outlook on HDFC Bank, while Kotak received 'neutral' rating.
Meanwhile, JPMorgan has initiated coverage on Indian cement companies including ACC Ltd., UltraTech Cement Ltd., Ambuja Cement Ltd., among others, and sees sector-wide consolidation.
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 Monday.
Brokerages On HDFC Bank
Motilal Oswal
Reiterated 'buy' with target price of Rs 2,050 per share, an upside potential of 22%.
Net interest margins stable despite liquidity built-up. Credit-deposit ratio, liquidity coverage ratio improves sharply.
Credit growth modest; fresh slippages remain under control.
Estimates HDFC Bank to report gradual recovery in loan growth over FY25-27.
Earnings growth accelerating faster.
Estimates HDFC Bank to deliver 1.8% RoA and 14.6% RoE in the next fiscal.
Value at 2.4 times its fiscal 2026 price-to-book value estimate.
Bernstein
Maintained 'outperform', with target price Rs 2,100 apiece, a potential 25% upside.
Sees HDFC Bank's results to be better compared to peers.
No signs of NIM pressure or increase in slippages that were seen for peers.
Pickup in fee growth, moderation in operating expenditure growth and strong current and savings account ratio growth.
Weak loan growth the key negative.
Nuvama
Retained 'buy' with target price increased by 6% to Rs 1,950 per share, a likely upside of 16%.
In-line second quarter earnings.
Small miss on net interest income offset by higher fees, lower opex and a write-back of AIF provisions.
Strong risk assessment once again comes to the rescue with the bank.
Asset quality and credit cost remained resilient versus an upswing for peers.
Bank shall achieve the pre-merger LDR of 86% in three years versus four earlier.
Negative of low loan growth is fully priced in.
Value at 2.3 times its fiscal 2026 price-to-book value estimate.
Citi
Maintained 'buy' with target price of Rs 1,990 per share, compared to Rs 2,020 earlier, an upside potential of 18%.
NIMs, fee, credit cost surprise positively.
Better positioned to manage retail stress cycle and NIM.
Factors Rs 4 lakh crore estimated deposits accretion for this year and Rs 4.8 lakh crore for next fiscal.
Management focused on reducing loan-deposit ratio.
Tone down loan growth estimate to 8% and 12% for FY25 and FY26, respectively.
Value at 2.4 times its fiscal 2026 price-to-book value estimate.
Brokerages On Kotak Mahindra Bank
Citi
Maintained 'neutral', with target price of Rs 1,940 per share, a potential upside of 4%.
NIM, slippages, credit cost and growth led to earnings miss.
Will leverage its salaried affluent customer base of Standard Chartered.
Raised target price, factoring better earnings momentum from subsidiaries.
Value at 2.4 times its fiscal 2026 price-to-book value estimate.
Motilal Oswal
Maintained 'neutral' with target price of Rs 1,950 apiece, a potential upside of 4%.
Operating performance in line.
Card delinquencies drive an increase in slippage run-rate.
Deposit growth healthy; other income misses estimate.
Full effect of the embargo has adversely affected the business.
Value at 2.2 times its fiscal 2026 price-to-book value estimate.
Bernstein
Maintained 'market perform' with target price of Rs 1,750 per share, a potential downside of 6%.
First full quarter after RBI’s embargo and its impact was very visible.
Bank saw a slowdown in higher yielding loan segments, driving an NIM compression.
Good quarter on the growth front, credit cost led to ROA decline.
JPMorgan Initiates Coverage On Indian Cement Companies
Initiated coverage on UltraTech Cement with 'overweight' rating and target price of Rs 13,750, a potential 24% upside.
Initiated coverage on ACC with 'overweight' rating with target price at Rs 3,020, a potential 32% upside.
Initiated coverage on Ambuja Cement with 'neutral' call and target price at Rs 590 apiece, a potential 3.3% upside.
Initiated coverage on Shree Cement Ltd. with 'neutral' rating and target price at Rs 25,175 per share, a potential 3.3% upside.
Initiated coverage on Dalmia Bharat with 'underweight' and target price at Rs 1,550 apiece, a potential 15.7% downside.
Prefers UltraTech Cement for better Ebitda per tonne.
On ACC, lowest EV/Ebitda ratio can be beta trade into near-term revival.
Sector looks set for consolidation.
Urbanisation, infra projects to boost medium term cement demand.
Expects utilisation to remain stable despite new capacity additions.
Expects recovery from recent weakness as government capex grows 40% YoY post monsoons.
Motilal Oswal On Raymond Lifestyle
Initiated 'buy' rating with target price of Rs 3,200 per share, potential 36% upside.
Expects branded apparel segment to be key growth driver, models 25% revenue CAGR.
Optimised working capital and achieved net cash position ahead of guidance.
Stock currently trading at relatively lower price-to-earnings of 25 times. Valuations could re-rate, the brokerage said.
Factors in 11%, 14% and 15% revenue, Ebitda and profit CAGR over FY24-27.
Nuvama On Gravita India
Initiated ‘buy’ with target price of Rs 3,475, an upside potential of 37%.
Regulatory push for recycling leads to increased battery scrap for organised recyclers.
Recycled lead volume expected to grow at estimated 21% CAGR between FY24–27.
Diversification into aluminum, plastic, rubber, steel, and lithium.
Expects 34% volume CAGR between FY24–27.
Hedging ensures steady Ebitda margins; 31% profit CAGR estimated over FY24–27.
Strong financials with low net debt and 31% return-on-equity justify premium valuation.
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