Brokerage Views: JPMorgan On L&T, Citi, Motilal Oswal On DMart And More

Larsen & Toubro Ltd., Avenue Supermart Ltd., and other oil marketing companies will be in focus after top brokerages changed their outlook.

Avenue Supermart Ltd., the operator of DMart, reported a 5.8% year-on-year uptick in net profit for the second quarter of this financial year. However, the profit missed analyst estimates.

Emkay Research has initiated coverage on the non-ferrous metals space, with a 'buy' rating on National Aluminum Co. and Vedanta Ltd., and a 'sell' rating on Hindalco Industries Ltd.

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 Monday.

JPMorgan On L&T

JPMorgan initiated an 'overweight' rating with a target price of Rs 4,360 per share, an upside of 25.2% from the previous close.
The company offers an attractive combination of growth at a reasonable valuation, it said.
Expects 60 basis points core margin expansion over fiscal 2024-2027.
Expects L&T well suited to benefit from capex tailwinds in India and the Middle East.

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Macquarie On Avenue Supermarts

Has an 'outperform' with a target price of Rs 5,600 per share, an upside of 22.5% from the previous close.
The second quarter is a miss. Quick commerce concerns cited.
Did not like management comment on seeing impact of online grocery format.
Did not like steady moderation in same-store sales growth.
Liked marginal improvement in general merchandise.

Citi On Avenue Supermarts

Citi maintained a 'sell' with a target price of Rs 3,500 per share, a 26% downside from the previous close.
Bill cuts declined sequentially despite the addition of new stores.
Ebitda/profit before tax growth has lagged revenue growth in seven of the last eight quarters.
Trims fiscal 2025-27 earnings per share estimate by 4-6%.
Valuation as risk-reward seems unfavourable at 82 times fiscal 2026 price to earnings.

Also Read: DMart Q2 Results Review: Analysts Reiterate Concerns Over Sluggish Growth

Motilal Oswal On Avenue Supermarts

Reiterated 'buy' rating on the stock with a target of Rs 5,300 per share, a 13.7% upside from the previous close.
Estimates a CAGR of 17 and 20% in revenue and profit over fiscal 2024-27, respectively.
Weaker store productivity and higher combined operating ratio offset slightly higher store additions.
Dmart's revenue growth remains dependent on its ability to add store area.
Store additions can pick up pace starting second half of the current fiscal, it said.

HSBC On OMCs

Bharat Petroleum Corp.: Maintains 'buy' with target price of Rs 460 per share, implying a 36% upside from the previous close.
Indian Oil Corp.: Maintains 'buy' with a target price of Rs 200 apiece, a 22.6% upside from the previous close.
Hindustan Petroleum Corp.: Maintains 'buy' with a target price of Rs 480 apiece, a 21.5% upside from the previous close.

View on Indian Oil Marketing Cos:

The current volatility in oil prices is beneficial for OMCs.
Brokerage discourages any government interference in pump prices.
Weakness in auto fuel price not surprising given above normal monsoons.
Strong marketing margins offset weakness in gross refining margins.
Volatility in oil prices driven by geopolitical uncertainties.
Indian oil demand muted due to heavy rainfall.
Gasoline and diesel weakness worries the brokerage less.

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Citi On Life Insurers

HDFC Life’s value of new business is likely to fare better than peers.
Expects HDFC Life to deliver over 20% year-on-year growth in VNB in the second quarter of the current fiscal.
HDFC Life to deliver better VNB growth than LIC, ICICI Prudential, and SBI Life.
LIC strong growth driven by a push in business, likely to taper.

Emkay Initiates Coverage On Metals (Non-ferrous Space)

Initiated 'buy' rating on National Aluminium Co., with a target price of Rs 275 per share, a 23.4% upside from the previous close.
Initiated 'buy' rating on Vedanta, with a target price of Rs 600 apiece, a 21% upside from the previous close.
Initiated 'reduce' on Hindalco, with a target price of Rs 650 per share, a 13% downside from the previous close.
Expects favourable supply/demand dynamics of aluminium.
Sees more value addition via reduced costs and backward/forward integration.
Sees more effective stimulus measures in China in near term.

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