Brokerage Views: IndusInd Bank And Petronet LNG, Tata Steel In Focus

Nuvama Institutional Research and Citi Research weigh in on IndusInd’s earnings miss, with mixed views on future growth and asset quality. Meanwhile, both brokerages share differing takes on Petronet LNG, analysing recent performance and upcoming expansion plans.

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.

Nuvama On IndusInd Bank

Downgraded to 'hold' with a target price of Rs 1,290 per share, down from Rs 1,690 earlier, implying a 0% upside from the previous close.
Weakest earnings in the sector so far, with an all-round miss in performance.
Asset quality has deteriorated, particularly in the micro finance segment.
Net Interest Income declined quarter-on-quarter, and fee income was weak.
Target price cut, valuing the stock at 1.3 times estimated fiscal 2026 price-to-book value.

Also Read: Coal India, Bank Of Baroda, BPCL And HPCL Q2 Results Today — Earnings Estimates

Citi On IndusInd Bank

Maintained a 'buy' rating but reduces the target price to Rs 1,630 per share from Rs 2,010 apiece, implying a potential upside of 27% from the previous close.
Sharp earnings miss due to negative surprises in credit costs, net interest margins, and fees.
Models credit cost at 1.5% for fiscal 2025.
Margins expected to stay at 4.1%, unless micro finance outpaces loan growth.
Cuts growth expectations and reduces earnings estimates by 18-22% for fiscals 2025-2027, valuing the stock at 1.7 times estimated fiscal year 2026 PBV.

Also Read: IndusInd Bank Q2 Results: Profit Slumps 39% On Higher Provisions, Asset Quality Weakens

Bernstein On IndusInd Bank

Maintains an 'Outperform' rating with a target price of Rs 1,800, implying a potential upside of 41% from the previous close.
Sharp decline in RoA driven by rising credit costs and contingent provisions.
Asset quality worsened across consumer portfolios, with micro finance particularly impacted.
Better-than-system deposit growth remains a positive note.

Citi On Petronet LNG

Maintained a 'sell' rating and raised the target price to Rs 310 from Rs 290, implying a potential downside of 8.7% from the previous close.
Second-quarter performance was softer than expected.
Dahej and Kochi utilisations were in line with expectations.
Management remains confident about Dahej reaching full utilisation after the 5 million metric tonnes per annum capacity expansion.
Cautious stance maintained due to visible signs of competition impacting market share.

Nuvama On Petronet LNG

Retained a 'buy' rating with a target price of Rs 412 per share, implying a potential upside of 21% from the previous close.
Ebitda miss due to the write-off of Use-or-Pay receivables, but there are prospects for reversal.
Gross profit exceeded estimates by 4%, driven by higher spot sales offsetting lower re-gasification volumes.
Value-accretive brownfield expansion underway, and the petrochemical project is progressing.
The company is expected to benefit from the completion of the Kochi-Bangalore pipeline and increased global liquefaction capacity, which could put pressure on LNG prices.

Also Read: Petronet LNG Q2 Results: Profit Rises 1.7%, Margin Contracts

Bernstein On Nippon Life

Maintains a 'Market Perform' rating with a target price of Rs 680, implying no potential upside from the previous close.
Strong inflows continue, driving AuM and profit growth along with an interim dividend.
No new commission cuts were made during the quarter.
One-off tax charges make post-tax profits less indicative this quarter.

Citi On Steel Authority of India

Adds a 'Downside 90-Day Catalyst Watch' with a target price of Rs 105, implying a potential downside of 11% from the previous close.
Earnings estimates are at risk based on second-quarter expectations and current trends.
Volume weakness persists, with an estimated 14% year-on-year decline in the second quarter.
Trades at 15x EV/Ebitda, higher than the five-year pre-pandemic average of 11.5x.
Key upside risks include higher-than-expected steel prices and volumes.

Citi On Tata Steel

Adds a 'Downside 90-Day Catalyst Watch' with a target price of Rs 145, implying a potential downside of 2.6% from the previous close.
Risk to earnings estimates due to second-quarter expectations and ongoing trends.
Net Debt/Ebitda is expected to worsen compared to 3.5x in June 2024.
Demand improvement appears limited, as China's steel production has declined 2%.
Key upside risks include higher steel spreads driven by unexpected steel demand in China.

Citi On ACC

Reiterates a 'Buy' rating, adjusting the target price to Rs 2,750 from Rs 3,000, implying a potential upside of 21.5% from the previous close.
Second-quarter Ebitda came below estimates; awaiting commentary on price and cost expectations.
Cuts Ebitda estimates for fiscal years 2025-2027 by 10%, 22%, and 23%, factoring in lower realisations.
Expects benefits from cost efficiencies driven by the Ambuja group’s capacity expansions.