Brokerages are weighing in on companies, assessing their quarterly performance this Monday morning. Citi maintains a positive stance on Sun Pharma, despite a delay in the Leqselvi launch, and has revised its targets for HPCL and IOCL due to changing refining margins and marketing assumptions.
Jefferies sees strong growth potential in Nykaa's positioning in India's grooming market, while HSBC raises its target for Prestige Estates, anticipating a promising second half and strategic expansion in the National Capital Region.
Nomura upgrades Cipla after regulatory clearances, anticipating steady growth in its US business, while CLSA remains cautious on Tata Power due to challenges in renewable profitability. Morgan Stanley highlights solid October auto sales, with Mahindra & Mahindra and Royal Enfield leading, supported by rural demand and discounts.
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 Monday.
Citi on Sun Pharma
Maintain a 'buy' rating with a target price of Rs 2,080, indicating a 12% upside.
Delay in Leqselvi launch is a setback to the specialty segment and may impact near-term earnings (3-6% of Earnings Per Share), as well as competitive dynamics.
Value Sun Pharma at 37 times March 2026 estimated EPS.
Citi on HPCL
Maintain a 'buy' rating, raising target price to Rs 450 from Rs 420, implying an 18% upside.
Revised assumptions for higher petrol and diesel marketing margins.
Lowered gross refining margin forecasts based on recent trends and management commentary; adjusted financial year 2026 and 2027 Earnings Before Interest, Taxes, Depreciation, and Amortisation forecasts by -2% and +9% respectively.
Citi on IOCL
Maintain a 'buy' rating with a target price of Rs 190, indicating a 30.6% upside.
Revised assumptions for higher petrol and diesel marketing margins.
Lowered gross refining margin forecasts based on recent trends and management commentary; adjusted financial year 2026 and 2027 Ebitda forecasts by -3% and +1% respectively.
Jefferies on Nykaa
Rate 'buy' with a target price of Rs 220, offering a 21% upside.
Key insights from Nykaa's operations reveal evolving grooming and makeup trends, with India as a key growth market.
Brands view Nykaa as an essential partner.
HSBC on Prestige Estates
Maintain 'buy' rating, raising the target price to Rs 1,800 from Rs 1,270, indicating a 12.2% upside.
Weak first-half bookings are expected to be offset by a strong second-half pipeline; success in the National Capital Region market could unlock growth opportunities.
Anticipate debt reduction with a Rs 5,000 crore capital raise; raise financial year 2025–2026 earnings per share estimates by 13-36% based on new projects and the qualified institutional placement raise.
Downside risks include delayed launch approvals and slow sales of large projects.
Nomura on Cipla
Upgraded to 'buy'; raise target price to Rs 1,800, with a 16% potential upside.
The US Food and Drug Administration cleared Cipla's Goa facility as VAI, enhancing approval chances for limited-competition generic Abraxane.
Focus on U.S. inhalers, injectables, peptides, and antiretrovirals, with expected growth in financial years 2025 to 2027.
Higher valuation aligns with sector trends; Cipla's stock is up 29% over the past year, though underperforming Nifty Pharma’s 54% rise.
Key risks include lower-than-expected growth in India, weaker US revenue, and rising pricing pressures.
CLSA on Tata Power
Maintain 'underperform' rating with a target price of Rs 440.05, suggesting a 30.6% upside.
Second-quarter results aligned on operating metrics but fell short on net profit.
Profitability in renewables impacted by lower utilisation rates, with Odisha Discoms and new non-fossil energy wins seen as long-term positives.
View stock as expensive, trading at 35 times financial year 2025 price-to-earnings ratio.
Morgan Stanley on October Auto Sales
Retail data from the start of Navratri shows passenger vehicle retail growth of 9%, with two-wheelers up 14% year-on-year.
Sales supported by high discounts and rural recovery; inventory levels normalised.
Royal Enfield and Mahindra & Mahindra outperformed.
Maintain industry growth estimates of 3% for passenger vehicles and 10% for two-wheelers in financial year 2025, with an overweight preference on Mahindra & Mahindra, Maruti, and Bajaj.
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