Brokerage Views: HSBC On India Agro-Inputs, JPMorgan Hikes Zomato Target Price And More

JPMorgan has raised Zomato Ltd.'s target price as it spearheads rapid retail consumer transformation via quick commerce and disrupts the e-commerce space. Haitong remains bullish on industrial gases firm Linde India Ltd. as the company looks to double production capacity, while HSBC has cut its price target for SpiceJet Ltd.

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 Thursday.

Morgan Stanley On India Equity

India has become the largest weight in MSCI Emerging Markets Investable Market Index overtaking China.
This means more absolute foreign flows.
The problem for foreign flows is that domestic flows are outbidding them.
There are several reasons to believe that correction in a strong bull market is on the anvil. However, corrections would be shallow and should drive money on the sidelines to pour in.
Looking at China’s history, its performance did suffer after becoming the largest EM though India need not follow the same,
India is gaining share in global GDP and in global market.
India remains top pick in EM category, and number two after Japan in Asia-Pacific.

Also Read: India Overtakes China In MSCI EM IMI To Become Largest Weightage

JPMorgan On Zomato

The investment firm retained an 'overweight' on the Zomato stock with a target price of Rs 340 compared to Rs 208 earlier, implying a 40% upside potential to the previous close.
The company is spearheading rapid retail consumer transformation via quick commerce.
It is going deeper across metros, planning 1,500 stores in the next two and a half years.
The scale should help monetisation from channel margins and ad spending.
Incremental store economics should turn more positive on operating profit (Ebitda).
The firm expects Zomato to lead disruption of modern trade and e-commerce.
It sees bigger 'going out' business, adding to monetisation.
It has raised fiscal 2025-2027 earnings forecast by 15-41%.
It upgraded the quick commerce per share value by 115% to Rs 150 and food delivery estimates for fiscal 2026 Ebitda by 11%.

Also Read: Blinkit Drives Zomato's Upward Target Price Revision By JPMorgan

HSBC On SpiceJet

Maintains 'reduce' ratings and lowered target price to Rs 26 apiece from Rs 40 apiece earlier, implying a 60% downside over previous close.
The brokerage raised questions about the potential use of SpiceJet's plan to raise Rs 3,000 crore through a qualified institutional placement.
Past performance casts doubt on its commitment to pare debt and fleet expansion.
The airline's ability to expand its operations is further hindered by a severe shortage of available aircraft.
SpiceJet's market capitalisation of $583 million appears excessive in comparison to its peers.

Also Read: SpiceJet Target Price Cut By HSBC Citing Operational, Financial Challenges

Goldman Sachs On AU Small Finance Bank

Initiates 'buy' rating on the stock with a target price of Rs 831, implying an upside potential of 18.5%. The target price values the bank at 23 times 12-month forward price-to-earnings ratio.
The stock has derated to 18 times the 12-month forward PE from 25 times over last 12 months.
The lender has a growing market share in deposits.
Bank read to graduate to next level, transition into “universal bank”
It estimates earnings growth of 27% compounded annually over the next three years, on the back of improving return on assets.
The bank has robust loan growth driven by commercial retail portfolios.
It is relatively better on improving deposit market share, asset quality control and operating efficiency, including merger synergies.

Also Read: AU Small Finance Bank Seeks Universal Bank Licence From RBI

HSBC On India Agro-Inputs

The investment bank maintains a 'buy' rating and raised the target price for:

UPL: Price target at Rs 680, representing 12.2% upside potential to the previous close.
PI Industries: Price target at Rs 5,000, implying an upside of 10.8%.
Dhanuka Agritech: Price target at Rs 2,000, implying an upside of 17.9%. The company will outperform with new launches and high domestic exposure.

The bank maintained 'hold' ratings for:

Bayer CropScience: Price target at Rs 6,300, implying a downside of 3%.
Rallis India: Price target at Rs 251, implying a downside of 26.5%.

The bank said higher crop sowing is positive, but rains may slow growth in the ongoing quarter. Good rainfall will boost sales in the second half of the current fiscal, and the full year's outlook is healthy.

Also Read: How Is The Share Price Of Raymond Lifestyle Valued

Haitong On Linde India

The brokerage maintains an 'outperform' rating on the stock with a target price of Rs 8,546, implying 18.6% potential upside.
The company entered into an into an agreement with Tata Steel to acquire two 1,800-tonne per day Air Separation Units (ASU).
Overall capacity has increased by 37% to 13,330 tonne per day and is on track to double production capacity in India.
The expansion will lead the company to potentially become world’s largest single-site ASU.
The brokerage forecast revenue and net profit to grow 33% and 34% over the next three years.

Also Read: Morgan Stanley Builds A Bull Case For Kaynes Technology On Strong Sectoral Tailwinds