Brokerages from Citi to Motilal Oswal Financial Services are talking about Bharti Airtel Ltd., Maruti Suzuki Ltd., and Marico Ltd., after they released their second-quarter results.
Airtel received a strong vote of confidence for its execution on premiumisation and steady earnings, though segmental adjustments were made following its profit miss.
Maruti’s near-term outlook appears muted amid higher discounts and competitive pressures, yet brokerages see value in its expanding SUV portfolio and potential festive demand.
Meanwhile, Marico impressed brokerages with its robust 20% profit growth and resilience in its core brands like Parachute and Saffola, though analysts flagged potential margin pressures from rising input costs in the latter half of the year.
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 Wednesday.
Also Read: Stock Market Today: Sensex Closes Below 80,000 After Two-Day Rally; Nifty Settles At 24,350
Citi On Bharti Airtel
Maintains 'buy' but lowers target price to Rs 1,900 per share from Rs 1,950, implying a 15.7% upside from the previous close.
Made minor adjustments to segmental Ebitda, capex, and net debt forecasts following second-quarter results.
Ebitda revised by 3-4% for financial year 2025-2027.
Motilal Oswal On Bharti Airtel
Reiterated 'buy' with a target price of Rs 1,900 per share, indicating a 15.7% upside from the previous close.
Second-quarter driven by tariff hikes in the India wireless business; earnings estimates for fiscal 2025-26 largely unchanged.
Continues to lead in premiumisation with potential for significant free cash flow due to lower capex intensity.
Nuvama On Bharti Airtel
Maintained 'buy' and raised target price to Rs 1,900 from Rs 1,750, implying a 15.7% upside from the pervious close.
Second-quarter saw an increase in average revenue per user but a decrease in the subscriber base, both outcomes of recent tariff hikes.
Strong free cash flow and stable growth continue to support balance sheet strength; well-positioned following tariff hikes across the industry.
Also Read: Bharti Airtel Q2 Results Review - Time Correction Likely; Reiterate ‘Reduce': Dolat Capital
Emkay On Maruti Suzuki India
Upgraded to 'add' from 'reduce' with an unchanged target price of Rs 12,000 apiece.
Positive catalysts include the bottoming out of volume declines in entry-level models, a seven-seater SUV launch in second half of fiscal 2026, an EV launch in fourth quarter of the fiscal, and potential recovery in small cars.
Management forecasts 3-4% retail growth in fiscal 2025, despite an 8% earnings per share cut due to margin miss and tax impacts in the second quarter.
Citi On Maruti Suzuki
Maintained 'buy' but cuts target price to Rs 13,700 per share from Rs 16,300, implying a 24% upside from the previous close.
Second-quarter results below expectations due to lower gross margins, driven by increased discounts and commodity costs.
Reduced EBIT estimates due to softer gross margins, with target EV/EBIT multiple cut to 23 times from 26 times.
Despite a weak second quarter, Maruti remains a top sector pick, driven by strong demand forecasts for the festive season and lower inventory levels.
Nuvama On Maruti Suzuki
Maintained 'buy' but cuts target price to Rs 13,800 per share from Rs 14,600, implying a 24% upside.
Ebitda decreased by 8% year-on-year due to higher discounts; adjusted fiscal 2025-27 earnings per share estimates by 3-4% based on lower revenue and margin expectations.
Festive season growth projected at 14%, supported by strong SUV sales and steady rural demand.
Expects revenue and Ebitda CAGRs of 10% and 11%, respectively, over fiscal 2024-2027, driven by SUV growth and a recovery in hatchbacks.
Citi On Marico
Maintained 'buy' but cut target price to Rs 750 from Rs 765, implying a 19.5% upside from the previous close.
Growth is expected to continue in Parachute and Saffola oils; however, profitability may face pressure in second half of the fiscal due to rising input costs.
Anticipates lesser impact from urban demand slowdown, with distributor return on investment initiatives like Project SETU providing potential benefits.
Trimmed fiscal 2025-2027 profit after tax estimates by 2-4% on increased margin pressures.
Nomura On SBI Cards
Maintained 'reduce' and target price cut to Rs 625 from Rs 700, implying an 8.8% downside.
Asset quality has deteriorated, with credit costs and GNPA at multi-quarter highs of 9% and 3.3%, respectively.
Low card additions may hinder spending and loan growth as retail spending per card plateaus.
Fiscal 2025 is expected to be challenging, with next fiscals earnings also under pressure; potential policy rate cuts could improve profitability in fiscal 2026.
Reduced earnings per share estimates by 5% and 15% for fiscal 2025 and fiscal 2027, respectively, with PPOP/EPS CAGRs projected at 18% and 13% over financial year 2024-26.
Citi On Aditya Birla Sun Life
Maintained 'sell' but hiked target price to Rs 610 per share from Rs 520, implying a 22.7% downside.
While operational trends are improving, performance remains below peers in the mutual fund business.
Certain schemes show positive trends, though growth remains moderate across other segments.
Incremental performance improvements expected to curb outflows.
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