Brokerage Views: Jefferies On SBI, HSBC On Sobha And More

Jefferies Institutional Equities remains optimistic about State Bank of India, with the brokerage retaining its rating, citing strong asset quality, a focus on deposit growth, and robust return on capital employed.

On Sobha Ltd., both Investec and HSBC have a 'buy' rating with target prices of Rs 2,150 per share, highlighting its aggressive expansion into Mumbai and Noida, improved operating cash flow, and launch readiness of 26 million square feet, though margin pressures remain a near-term challenge.

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.

Goldman Sachs On Info Edge

Retained a 'buy' rating on the stock and raised the target price to Rs 8,600 apiece from Rs 5,700 per share, implying a potential upside of 14% from the previous close.
Expects headwinds to ease, leading to an acceleration in the recruitment segment.
Better-than-expected outlook on growth and earnings.
Anticipates improvement in earnings with 99acres expected to break even in calendar year 2025.
Remains optimistic on Zomato, forecasting upside risks to its earnings.

Also Read: Goldman Sachs Predicts Slower GDP Growth For India In 2025

Jefferies On State Bank Of India

Maintained a 'buy' rating on the stock and a target price of Rs 1,030 apiece, implying a potential upside of 32% from the previous close.
Following a management meeting, the brokerage notes the bank's focus on improving deposit growth despite room for a higher loan-to-deposit ratio.
Highlighted strong asset quality, including in the unsecured segment.
Expects gradual rate cuts, with the loan mix helping to defend margins.
Notes no plans for a capital raise, supported by a return on capital employed of 20% in the first half of the current fiscal.
Projects a 13% compound annual growth rate in loans through the fiscal year ending March 2027, with a return on capital employed of 16% through the fiscal year ending March 2027.
Values the stock at 1.5 times price-to-book value.

Also Read: HDFC Bank To Securitise Over Rs 12,000 Crore Car Loans To Reduce Assets

Jefferies On Transport And Logistics

Notes that the second quarter was impacted by weak industry volumes, which rose 5% driven by thermal, coal, and container cargo.
Reports margin pressure on Allcargo Logistics and lowers Ebitda estimates for the company.
Highlights weak volumes in the e-commerce industry.
Expects volume recovery to drive stock rebounds.

Stock-specific recommendations:

Adani Ports and Special Economic Zone Ltd.: Retained 'buy' rating with a target price of Rs 1,855, implying a 44% upside.
JSW Infrastructure Ltd.: Retained 'buy' rating with a target price of Rs 360, implying a 20% upside.
Container Corporation of India: Retained 'buy' rating with a target price of Rs 1,050 apiece, implying a 33% upside.
Gateway Distriparks: Retained 'buy' rating with a target price of Rs 110 per share, implying a 32% upside.
TCI Express: Retained 'buy' rating with a target price of Rs 1,425 apiece, implying a 72% upside.
Delhivery: Retained 'buy' rating with a target price of Rs 515, implying a 49% upside.
Allcargo Logistics: Retained 'buy' rating with a target price of Rs 80, implying a 48% upside.
Gujarat Pipavav Port: Retained 'underperform' rating with a target price of Rs 135, implying a 22% downside.

Also Read: NTPC Green IPO: LIC Likely To Invest Further In IPO After Anchor Investment

Investec On Sobha

Retained a 'buy' rating on the stock and a target price of Rs 2,150 apiece, implying a potential upside of 42% from the previous close.
Highlighted plans to strengthen its long-term presence with entries into Mumbai and Noida markets.
Expects a compound annual growth rate of 18% in presales over the fiscal years through March 2027.
Projects annual launches of approximately 9-10 million square feet over the next two years.
Notes strong cash flows and land monetisation to bolster the balance sheet.
Values the stock at 5.2 times enterprise value to Ebitda for the fiscal year ending March 2026, reflecting a discount of approximately 25% compared to peers.

Also Read: Keystone Realtors CMD Confident Of Surpassing Rs 3,000-Crore Pre-Sales Guidance In FY25

HSBC On Sobha

Maintained a 'buy' rating on the stock and raised the target price to Rs 2,150 apiece from Rs 2,000 per share, implying a potential upside of 40.3% from the previous close.
Highlights growth prospects following the recent rights issue and improved operating cash flow.
Notes enhanced visibility on launches beyond the fiscal year ending March 2026, with 26 million square feet ready for launch in the next two years and a land bank of 1,878 acres.
Cites aggressive expansion into new cities, including Mumbai and Noida, as a key growth drivers.
Growth through land acquisitions and joint development warrants a valuation re-rating, according to the brokerage.

Challenges: