Brokerage Views: Nuvama On Marico, Citi, Emkay On Dabur And More

Companies like Marico Ltd. and Dabur India Ltd. will be in focus after their second quarter update. While Petronet LNG Ltd. got a ratings upgrade, Coal India Ltd.'s production levels have Emkay optimistic.

Marico's domestic business posted mid-single-digit volume growth, showing improvement quarter-on-quarter in the July-September period of fiscal 2025.

Dabur India expects to post a mid-single-digit decline in consolidated revenue for the quarter ended September 2024, the company said in a quarterly update shared on Tuesday.

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 Thursday.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On Oct. 3

Nuvama On Marico

Retained ‘buy’ with a target price of Rs 780 per share, implying an upside of 13% from the previous close.
After a weak update from Dabur, Marico’s update reassured investors.
Consolidated revenue growth is likely to be 8% year-on-year.
Domestic business shall clock 5% volume growth year-on-year.
International business shall deliver 13% constant currency growth.
Revenue and volumes are to grow by 8% and 4.5% year-on-year, respectively.
Ebitda margin to decline 56 basis points year-on-year to 19.5%.

Also Read: Marico Q2 Update: Consolidated Revenue Growth Remains In Double Digits

Emkay On Petronet LNG

Emkay upgraded Petronet LNG to 'buy' from 'add' and raised target price by 16% to Rs 425 per share, implying a 23.4% upside from the previous close.
Maintained a positive view on steady outlook, attractive valuation.
For the remainder of fiscal 2025, 100% utilisation at Dahej is achievable.
Raised fiscal 2026 earnings per share estimates by 7%.
Estimates raised on ramp up of Exxon’s 2nd term contract with higher Kochi tariffs.
Sees value in stock under reasonably conservative assumptions.
Too much worry on long-term uncertainties, new triggers still present.

Emkay On Dabur

The brokerage downgraded Dabur to 'add' from 'buy' and cut the target price from Rs 750 per share to Rs 650 apiece. This implies a 5% upside from the previous close.
The second quarter inventory correction is a surprise, as Dabur noted pipeline buildup.
Channel hygiene is an important issue; restoration would be key for growth ahead.
Sees earnings cut of 8-11% over fiscal 2025-27E.
Remains hopeful of business recovery on the back of rural rebound and better winter sales.

Also Read: Dabur India Sees Mid-Single Digit Decline In Revenue In September Quarter

Citi On Dabur

Maintained 'sell' and cut the target price to Rs 570 per share against Rs 600 apiece. It implies a downside of 7.8% from the previous close.
Dabur’s second quarter trading update points to a weaker-than-expected performance.
The quantum of the impact of inventory pile up is fairly high.
Cut fiscal 2025–27 earnings estimates by 3-6%.
Forecasts 5% consolidated revenue decline year-on-year.
Forecasts 17% year-on-year decline in Ebitda.
Forecasts 19% year-on-year decline in recurring profit after tax.

Emkay On Coal India

Emkay maintained 'buy' on Coal India with a target price of Rs 600 per share, an upside of 17.6% from the previous close.
First half of fiscal 2025 production was at 341 million tonnes, up 2.5% year-on-year.
Implies full-year coal production for fiscal 2025 at 825 million tonnes.
Fourth quarter tends to be the best-performing quarter for company's operating performance.
Company has sufficient time, seasonality led tailwind to catch-up on production in second half.

Also Read: Stock Market Today: Nifty, Sensex Clock Worst Fall In Nearly Two Months As RIL, HDFC Bank Weigh

Jefferies On SEBI Norms

Circular, broadly in line with the discussion paper, impacts 35% of industry premiums.
Lot size and margin hike were lower than expected.
Phased implementation to lead to calibrated tightening.
Focus now moves to participant behavior post implementation.
Discount brokers can be most impacted, followed by exchanges (BSE)
Asset management companies, wealth managers, and depositories remain unaffected.

CLSA On India Telecom:

Indus Towers leads growth versus Indonesia’s two tower companies.
Indus has doubled its growth with lower valuations.
Its growth has been restored by Bharti Airtel’s 5G rollout.
It will accelerate with Vodafone Idea’s investment.
Expect 10% CAGR for Indus Towers in fiscal 2024-27
See continued rerating for Indus.

Jefferies On India Consumer Sector

Dabur's second-quarter revenue is down on high inventory, unfavorable weather.
Dabur to maintain marketing spend despite challenging environment.
Industry interactions suggest moderate demand with no major uptick expected.
Brokerage notes ongoing debate on impact of e-commerce and other new channels, presenting challenges and opportunities for FMCG companies like Dabur
Cites inventory management concerns at Honasa Consumer Ltd.
Advises caution on the possibility of market corrections in FMCG companies.

JP Morgan On KPIT Technologies:

The brokerage upgraded to 'overweight' from 'neutral' and has a target price of Rs 2,000 per share from Rs 1700 apiece earlier, implying an upside of 20%.
The stock has underperformed the last 1/3 months on negative news around EV as global OEMs push out EV targets.
Fortune to be driven by a few top clients, viz., BMW, Honda, and Renault.
These clients have not announced any scaleback of EV plans.
Now trades at 5% discount to peers, versus 5% premium.
KPIT is a top pick in the engineering and research and development space.