Brokerage Views: Nomura On Ambuja Cements, Citi On Jubilant FoodWorks And More

Nomura has Ambuja Cements Ltd. on its radar, while Citi Research shared its outlook on Jubilant FoodWorks Ltd. Emkay Global shared its takeaway after Dixon Technologies (India) Ltd.'s management call.

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 Thursday.

Jefferies On Reliance Industries

Maintains a ‘buy’ rating on the stock and a target price of Rs 3,580 apiece, implying a potential upside of 14% from the previous close.
The potential public listing of Jio Financial Services Ltd. hinges on value maximisation.
Currently with Indian market imputing 20-50% holding company discount to listed subsidiaries.
Strong performance of Reliance Industries and Jio Financial Services post spin off leads us to believe Jio could be spun off.
Institutional investors prefer spin offs to avoid holding company discount.
Jio Financial Services lead in tariff hikes unlike past creates a case for possible listing.
IPO route offers better control but holding company discount; needs large retail mobilisation.
Reliance Industries could look to spin off Jio Financial Services and list it after a price discovery.
Assuming Jio Financial Services is spun off, could list at $112 billion valuation, 7-15% upside to Reliance Industries.
The value of Reliance Industries may fall to Rs 3,365 in the base case with a 20% holdco discount.

Nomura On Ambuja Cements

Upgrades the stock to a 'buy' rating with a target price of Rs 780 apiece, implying a potential upside of 17% from the previous close. Previous target price was Rs 500.
Upgrade on strong capacity expansion.
Another round of inorganic expansion is possible.
Highest volume growth in industry.
In the process of adding 24-tonne capacity by FY26 forecast.
Penna acquisition helps it become third largest player in South India.
Behind only UltraTech Cement Ltd. and Ramco Cements Ltd.
Estimates FY24–26 volume/Ebitda on compound annual growth rate of 13%/28%; slightly above UltraTech Cement.
Raises target multiple to 19 times from 14 times to factor in aggressive capacity expansion, entry into newer markets, above-industry volume growth, increased brownfield optionality and cost-optimisation measures.

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Citi On Jubilant FoodWorks

Maintains a 'buy' rating on the stock and a target price of Rs 663 apiece, implying a potential upside of 14% from the previous close.
Expects turnaround in Domino's in same-store growth trajectory.
Other upsides are the focus on cost control and better numbers from new ventures.
Downside risks include the deterioration in consumer sentiment, inflation, irrational competition, limited traction in new products and escalation in operating expenses.

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Emkay On Dixon Technologies

The brokerage has no coverage on the stock.
Shares its takeaways from meeting with Atul Lall, vice chairperson and managing director.
Turning into an electronics engineering powerhouse.
Eyeing aggressive multi-year growth.
Several growth initiatives underway and with mobile and IT-hardware products.
Mobile, IT-hardware products are key growth drivers, aided by refrigerators and telecom devices.
Strong base to pursue backward integration and increase local value-addition.
Plans to foray into display module manufacturing that usually contributes 8–10% of the bill of materials cost.

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Nuvama On Specialty Chemicals

Prefers Aarti Industries Ltd., Gujarat Fluorochemicals Ltd., Galaxy Surfactants Ltd. and Jubilant Ingrevia Ltd.
Maintains a ‘buy’ rating on Aarti Industries with a target price of Rs 854 apiece, implying a potential upside of 18% from the previous close.
Maintains a ‘buy’ rating on Gujarat Fluorochemicals and a target price of Rs 4697 apiece, implying a potential upside of 44% from the previous close.
Maintains a ‘buy’ rating on Jubilant Ingrevia and a target price of Rs 632 apiece, implying a potential upside of 18% from the previous close.
Estimate sustained growth for most speciality chemical players after bottoming in third quarter of fiscal 2024.
Players catering to agrochemicals such as SRF Ltd. likely to report low growth.
Players with ready capex may witness higher growth as demand scenario improves.
Optimistic about battery chemical companies such as Gujarat Fluorochemicals Ltd.
Reckons SRF and Anupam Rasayan India Ltd. shall witness weak growth momentum.

Bernstein On Sona BLW Precision Forgings

Maintains an ‘outperform’ rating on the stock and a target price of Rs 780 apiece, implying a potential upside of 13% from the previous close.
Sees company benefitting from transition to mobility.
Business enterprise value revenues now at 30%, expected to reach 45% by fiscal 2026.
Sona now has 30 EV clients with increased hybrid relevance another benefit.
Developed new traction motors for hybrids and already sells started motors.
Expanding product portfolio resulted in 5-times revenue growth in five years
Production linked incentive for EV Motors helps transition to EV's in two-wheelers.
Current order book at 7.6 times trailing revenues.