Phillip Capital initiated coverage on Bajaj Housing Finance Ltd. with a bullish outlook. The newly listed firm had the largest IPO of the year. Goldman Sachs initiated a 'buy' on Ola Electric Mobility Ltd., with a positive outlook on the long-term structural trends in India's electric two-wheeler market.
Emkay remained positive on Emami Ltd., while Citi has a bearish view on Coforge Ltd., retaining a 'sell' rating on the stock, as demand seems to have bottomed out.
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 Tuesday.
Goldman Sachs On Ola Electric
Initiates coverage on the stock with a 'buy' rating and a target price of Rs 160, implying a potential upside of 48%.
FY30 Ebitda margin seen at 11.9%, Return on Invested Capital of 27% for the financial year 2030.
Building local formula for giga growth in electric two wheelers.
Views company as positively levered to long-term structural trends in India's electric two-wheeler market.
In-house battery manufacturing, launches by incumbents, FCF breakeven journey form key factors.
Op leverage in fast growth phases for incumbents suggests Ola breaking even on Ebitda by fiscal 2027.
Expect revenue growth of 40% CAGR through fiscals 2024 to 2030.
Implies FCF Breakeven by fiscal 2030.
Also Read: Ola Electric Condemns Arson Incident
Emkay On Emami
Retained a 'buy' rating on the stock with a target price of Rs 950 per share, implying a potential upside of 26%.
Expects steady rebound in rural demand, better seasonality, and enhanced execution.
Direct-to-customer brands are likely to drive around 30% domestic growth.
Valuation based on 44 times the price-to-earnings ratio.
Buoyed by competent management and favorable seasonality.
Emami is one of the better rural recovery plays.
Improving financial performance grants comfort on valuations.
Phillip Capital On Bajaj Housing Finance
Initiated coverage with a 'buy' rating on the stock and a target price of Rs 210 per share, implying a potential upside of 27%.
Focus on ideal home loan segment, offering loans with ticket size of Rs 50 lakh.
Addresses around 65% of home-loan originations in India.
Focusing on Lease Rental Discounting, a high-yield segment which provides operating leverage with scale.
In three years, BHFL is likely to have balance sheet of more than Rs 2 trillion.
Acute focus on salaried HL, steady expense ratio, benign credit costs, manifesting strong return ratios.
As BHFL scales up, its assets under management per branch is closing in on LIC Housing Finance.
AUM per employee is at par and borrowing cost is better than Can Fin Homes.
Risk-adjusted spreads are lower, reflected in RoE.
Taken hold-co discount of 15% to be conservative.
Motilal Oswal On Dixon Technologies
Maintained a 'buy' rating on the stock with a target price of Rs 15,500, indicating a potential upside of 11%.
Factored in Rs 5,000 cr revenues from IT Hardware in fiscal 2027 versus Rs 140 crore in fiscal 2024.
Maintained estimates and expect CAGR of 44% in revenue, 46% in Ebitda, and 51% in PAT over fiscals 2024 to 2027.
Stock trades at 65x the valuation for fiscal 2027.
Recent tie-ups under IT hardware production-linked incentive scheme 2.0 augur well.
Scaling up its IT hardware revenues from current levels.
Company now catering to four out of the top five players in laptops.
These players form nearly 67% of the overall IT hardware market share in India.
Also in discussion to enter industrial EMS sector.
Includes manufacturing electronic modules for the EV industry.
Citi On Coforge
Maintained a 'sell' rating on the stock, with a target price of Rs 5,885 per share, indicating a potential downside of 15.8%.
Interacted with Chief Financial Officer Saurabh Goel.
Demand seems to have bottomed out.
There is a slow pick-up, likely to sustain going forward.
Margins ex-ESOP costs remain under control.
Lower ESOP costs in the second quarter will aid margins.
Reiterated guidance that margins in the first half of fiscal 2025 likely to see 50 basis-point improvement versus the first half of fiscal 2024.
Valuations are at around 35 times the consensus earnings-per-share of fiscal 2026.
Jefferies On India Utilities
Top picks include NTPC, JSW Energy, Power Grid.
Expect power capex CAGR to rise seven times at 16% in fiscals 2024 to 2027 versus 2.2% in 2010 to 2020.
Finance & Power Ministry's policies helping reduce State Electricity Boards' losses.
SEBs losses down to Rs 0.39 versus Rs 0.84 per unit in fiscals 2013 to 2023.
SEB health, cashflows to power company's key for sector investments.
CERC tariff regulations augur well for NTPC, Power Grid.
JWS to be beneficiary of accelerated capacity addition.
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