Brokerage Views: Jefferies On SEBIs F&O Proposals, Citi On Q1 Earnings And More

Top brokerages have Dixon Technologies Ltd., Varun Beverages Ltd., and Tata Consumer on their radar, along with their take on the capital market regulator's recent tweak on futures and options rules.

The Securities and Exchange Board of India has proposed new measures to ensure market stability in the booming derivatives market. It has mandated the upfront collection of option premiums from buyers by trading members and clearing members, among other measures.

Citi Research has also released its view on Nifty companies' first-quarter earnings.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Wednesday.

Jefferies On SEBI's F&O Proposals

The brokerage sees a divergent impact on market players.
The most affected will be exchanges and brokers with a focus on retail.
Clearing members like Nuvama are less affected, but may see a second-order impact.
Removal of the Bankex weekly contract can impact earnings per share by 7-9% over fiscal 2025–2027 for BSE.

Also Read: SEBI To Consider Mandating ASBA For Stock Brokers, Says Chairperson

Citi On Cartrade Tech

The brokerage maintains 'buy' with a price target of Rs 1,075 per share, implying an upside of 24.6% from the previous close.
Solid first-quarter earnings beat with consolidated Ebitda at Rs 21.6 crore.
Key positives include the managements focus on product and monetization in Olx India.
Revised fiscal 2025 and 2026 consolidated revenue estimates by +1% and +2%, respectively.

Citi Research On Q1 Earnings

June 2025 Nifty 50 target is 24,400 (multiple 19 times).
First-quarter earnings so far are largely inline except oil marketing companies.
Nifty companies (27/50) Ebitda and profit after tax are at +1% and -3%, respectively, year-on-year.
Industrials delivered ‘beats’ while energy among key ‘misses’ thus far.
Citi/Consensus EPS revision trends flattish so far.

Nuvama On Dixon Tech

The brokerage retains 'hold' with a target price of Rs 12,000 per share, an upside of 1% from the previous close.
Above expectations results in revenue and profit surging 101% and 106%, respectively.
Mobile and electronics manufacturing services segment drove growth, whereas other segments contracted 6% year-on-year.
Guided for steep ramp-up in mobile revenue in fiscal 2025.
Led by new customers on-boarded now and one new addition expected.
Backward integration and new products shall drive growth for other businesses.
Largely on back of upward revisions from new customer additions.

Jefferies On Varun Beverages

The brokerage retains 'buy' with a target price of Rs 1,800, an upside of 14% from the previous close.
Strong growth in India and slight hiccup in international.
Volume growth strong benefiting from a lower base.
Organic business suffered due to sugar tax in Zimbabwe.
With 30% lower realisations in BevCo’s own brands overall realisations were flay year-on-year.
Management expects capex to reduce to Rs 2,600 crore in calendar 2025 from Rs 3,600 crore in 2024.

Citi On Exide Industries

The brokerage maintain 'buy' but lowers target price to Rs 610 per share from Rs 630 apiece earlier, implying an upside of 14% from the previous close.
First-quarter results below estimates and revenue growth weaker than expected.
Margins disappoint too indicating sluggish demand.
Expected healthy demand momentum in Q1 but reported revenue was much lower.
Don't know if elections and heat wave had any impact on replacement demand.
Await more clarity from mgmt on segment-wise demand trends.
Cuts fiscal 2025-2027 earnings estimates to reflect moderate demand outlook.

Citi On Tata Consumer

The brokerage reiterates 'Buy' with a target price of Rs 1,284 per share, an upside of 7% from the previous close.
Sees potential near-term margin headwinds.
Positive on the long term growth opportunity and strong execution track record.
India comparable Ebitda margin expanded 10 basis points.

Citi On Indian Oil

Citi maintains 'buy' with a target price of Rs 205 per share, an upside of 11.8% from the previous close.
First quarter Ebitda at Rs 8,600 crore was 9% ahead of brokerage estimates.
First quarter performance impacted by LPG under- recoveries like peers.
Lower fiscal 2025 and 2026 gross refinery margin forecasts for Indian Oil Corp. to $8 and $9, respectively.
Lower fiscal 2025 blended gross marketing margin estimates to Rs 1.5 per litre.
Near-term margin outlook on OMCs improved on recovery in GRMs.

Citi On GAIL (India)

Citi maintains 'Buy' on with a price target of Rs 250 per share, a 7.3% upside from the previous close.
Solid Q1 performance, with Ebitda coming 33% ahead of brokerage estimate.
Beat driven by stronger-than-expected performance in gas transmission, gas trading segments.
Petchem, LPG segment performance weaker than expectations.

Citi On Indus Towers

The brokerage maintains 'buy' with a target price of Rs 500 per share, an upside of 12% from the previous close.
Approved buyback of up to Rs 2,650 crore, or equivalent to 2.1% of share capital. The price of Rs 465 per share is a 4% premium to the previous close.
The first payout was announced in over two years.
Signal of intent to reward shareholders in line with its payout policy.
The first quarter performance was ahead of expectations.
Driven by a higher provision reversal pertaining to Vodafone Idea’s past dues.

Also Read: Q1 Results This Week: Delhivery, Infibeam Avenues, Aeroflex Industries Among 130+ Firms To Declare Earnings