Brokerage Views: Jefferies On TRAI Data, Emkay On Oil Firms, HSBC On Life Insurers And More

Jefferies expects market gains for Bharti Airtel and Jio will continue in the near term after the Telecom Regulatory Authority of India released June data. While Emkay continues to remain positive on oil marketing companies as oil prices remain stable, HSBC has a 'buy' on major life insurance companies.

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.

Emkay On Oil Marketing Companies

Reiterated positive stance on oil marketing companies as oil prices remain stable at $80.
Maintained 'buy' on Bharat Petroleum Corp. and Hindustan Petroleum Corp., and 'add' on Indian Oil Corp.
Has a target price of Rs 475 per share on HPCL, implying a 20% upside.
Target price on IOCL is at Rs 205 apiece, indicating 19% upside.
Raised BPCL’s target by 10% to Rs 405 per share, indicating 16% upside.
Fiscal 2025's till date earnings run-rate for second quarter indicate sequential recovery in margins.
Liquefied petroleum gas' under-recoveries continue at Rs 2,500 crore per month. Expects one-time subsidy soon.
No downside risk to core earnings estimates; valuations reasonable.
Outlook to further improve after key state elections conclude in the third quarter of the fiscal.

Bernstein On Industrials And Infrastructure

Demand acceleration and supply mismatch in the power sector; picks include Power Finance Corp., REC Ltd., NTPC Ltd., and Power Grid Corp. of India.
Adani Ports and Special Economic Zone Ltd. is expected to drive pricing power in ports.
Engineering and construction sectors have room for order-inflow growth.
In building materials, supply glut is anticipated with a struggle between Ambuja Cements Ltd. and UltraTech Cement Ltd., suggesting high valuations.

Jefferies On TRAI Data

Jio led the sector’s active subscriber additions.
Bharti Airtel Ltd. gained market share in wireless broadband additions.
Vodafone Idea Ltd. continued to lose subscribers.
Reliance Jio Infocomm Ltd.'s lead in subscriber additions could mean it would get ahead in tariff hikes in June 2024.
Market gains may continue for Bharti and Jio in the near term.
This could moderate in fiscal 2026, given Vodafone Idea’s recent capital raise.

HSBC On Life Insurers

The brokerage has a 'buy' rating on SBI Life Insurance Co., HDFC Life Insurance Co., and ICICI Prudential Life Insurance Co., with target prices of Rs 1,850 per share, Rs 800 apiece, and Rs 815 per share respectively, indicating potential upsides of 11%, 17%, and 13%.
More focused on growth than margins.
Focus on growth through linked sales, new products and deeper distribution.
Product mix and higher expense ratios impacting margins.
Expect limited margin compressions of 1% year-on-year.

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