Nuvama raised concerns over Oil and Natural Gas Corp.'s volume guidance and expects next year's earnings to be impacted if crude oil prices decline further. Jefferies has a cautious view on markets in the near term, as its count of 'underperform' ratings on companies has doubled.
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.
Nuvama On ONGC
Maintained 'reduce' call on the stock, with a price target of Rs 232 per share, a potential 21.5% downside to the last closing.
The company is unlikely to meet volume guidance, as it has missed all past targets.
Production down at 3.2% CAGR over last five years.
1% and 5% of standalone oil and gas production growth expectation, respectively, over the next two years.
It expects next year's earnings to be impacted by 24% if crude falls further.
Falling crude prices could also force a cut in APM gas prices as well.
Jefferies On Equity Strategy
The brokerage has 28 'buy' and 10 'underperform' ratings. The count for 'underperform' ideas has doubled. It has a cautious view on markets in the near term.
Fresh inclusion to 'buy':
Cholamandalam Financial Holdings Ltd., ICIC Lombard General Insurance Co., Coal India Ltd., Siemens Ltd., ITC Ltd., Hindustan Unilever Ltd., Jubilant FoodWorks Ltd., Sun Pharmaceutical Industries Ltd., Zydus Lifesciences Ltd. and IndiGo.
Names replaced by new 'buy' ideas:
Hindalco Industries Ltd., Hindustan Aeronautics Ltd., Godrej Consumer Products Ltd., Nykaa, Mankind Pharma Ltd.
New 'underperform' ideas:
Petronet LNG Ltd., SRF Ltd., Dixon Technologies Ltd., Tata Power Co., Indian Energy Exchange Ltd., Whirlpool India.
Emkay On Pricol
Maintained a 'buy' with a target price of Rs 600 per share, implying a potential upside of 24% over the previous close.
It sees strong multi-year earnings growth visibility.
Premiumisation and higher wallet share likely to drive outperformance compared to industry.
Ramp-up in newer clients, such as Honda two wheelers, over the next 18-24 months.
New products under the testing and validation stage.
The company is potentially moving into revenue from next fiscal like disc brakes.
Improving mix and operating leverage-led margin uptick to around 13.5-14%.
Strategic inorganic acquisitions expanding the addressable market size.
Pricol is attractively valued, compared to other two-wheeler ancillaries.
It estimates 29% compounded annual growth in earnings-per-share over the next three years.
UBS On Tata Motors
Maintains a 'sell' rating on the stock with a target price of Rs 825 apiece, representing a potential downside of 25% over the previous close.
Defender, Range Rover and Range Rover Sport have aided average selling price and gross margins.
Extended success of key JLR models have started to moderate with order book below pre-Covid.
Rising discounts, moderate growth and lack of new launches could result in weaker performance fiscal 2026.
The value of JLR at Rs 340, Indian commercial and personal vehicle at Rs 280 and Rs 170 and subsidiaries at Rs 35.
Citi On ICICI Lombard
Maintained a 'sell' rating on the stock, with a target price of Rs 1,575 apiece, implying a potential downside of 30%.
Gradual moderation in pace of gross premium growth with weakness in motor sales to weigh.
Likelihood of unfavourable claims in health insurance, given strong group health growth in last 12 months.
Absence of any significant commission and operating expense ratio change.
Rich valuations ignore industry headwinds.
JPMorgan On Telecom
The brokerage upgraded Indus Towers Ltd.'s rating to 'overweight' from 'neutral', with a target price of Rs 500 from Rs 340 per share, an upside of 15% over previous close.
Indus Towers has better free cashflow from Vodafone Idea Ltd. rolling out towers.
Brokerage has an 'overweight' rating on Bharti Hexacom and raised the target price to Rs 1,330 apiece, from Rs 1,280 per share earlier, a potential upside of 8%.
It has an 'overweight' rating on Bharti Airtel Ltd. as well and hiked the target price to Rs 1,670 per share from Rs 1,500 apiece, an upside of 6%. The catalyst will be transmission of tariff hike in the second quarter.
Pecking order: Bharti Hexacom, Indus Towers, Bharti Airtel, Vodafone Idea.
CLSA On Infosys
The brokerage maintained 'hold' rating on the stock with a target price of Rs 1,747 per share, implying a downside of 8% from the previous close.
Outlook for the current fiscal remains unchanged.
Sustainability of demand tailwinds in certain pockets of BFSI.
Incremental headwinds emanating for the European Union auto vertical.
Demand uncertainties among key macro issues is fading away. This creates positive backdrop of discretionary demand revival next year.
Infosys more geared towards discretionary demand revival than other peers.
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