UBS has initiated coverage on Swiggy Ltd. this Tuesday with a 'buy' rating, citing strong growth potential in the country’s food delivery and quick commerce markets.
Meanwhile, JPMorgan initiated coverage on Bharat Electronics Ltd., Hindustan Aeronautics Ltd., and Mazagon Dock Shipbuilders Ltd., highlighting the defence sector's long runway for growth and robust order inflow prospects over the next three years.
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 Tuesday.
UBS On Swiggy
Initiates a 'buy' rating on the stock with a target price of Rs 515 apiece, implying a potential upside of 19.5% from the previous close.
Well-positioned for growth at a 35% to 40% discount to Zomato.
Expects valuation discount to narrow with market stabilisation.
Sees signs of market share stabilisation after the first quarter of the fiscal year ending March 2025.
Set to benefit from rapid growth in India's food delivery and quick commerce markets.
Estimates order food delivery gross merchandise value growth over the fiscal years through March 2027 to be similar to Zomato's.
Models quick commerce gross merchandise value compound annual growth rate of 68% over the fiscal years through March 2027, slightly lagging Zomato's 70%.
Citi Research On Godrej Consumer Products
Retained a 'buy' rating on the stock with a target price of Rs 1,550 apiece, implying a potential upside of 26% from the previous close.
Expects near-term business performance to remain under pressure.
Highlights high competitive intensity and rising raw material costs in the soap segment.
Reduced earnings estimates for the fiscal years through March 2027 by 4% to 8% on weaker-than-expected profitability trends.
Remained positive on the company’s long-term earnings growth trajectory.
Also Read: Unilever Indonesia's Ice Cream Transfer Confirms Global Separation To Be Centralised, Says Citi
JPMorgan On Defence Sector
Initiates an 'overweight' rating on Bharat Electronics with a target price of Rs 340 apiece, implying a potential upside of 16.3% from the previous close.
Initiates an 'overweight' rating on Hindustan Aeronautics with a target price of Rs 5,135 apiece, implying a potential upside of 19.7% from the previous close.
Initiates a 'neutral' rating on Mazagon Dock with a target price of Rs 4,248 apiece, implying a potential upside of 1.7% from the previous close.
The defence sector is still in the early stages of a long growth trajectory, the brokerage said.
Estimates order inflows over the next three years to be approximately 150% of the total order backlog for the fiscal year ending March 2024.
Projects sector-level revenue growth at a compound annual growth rate of 12% to 15% over the next few years.
Considers the recent pullback as an attractive entry point for larger incumbents.
Prefers Bharat Electronics for its consistent guidance and delivery.
JPMorgan On Coforge
Retained an 'overweight' rating on the stock with a target price of Rs 9,600 apiece, implying a potential upside of 18% from the previous close.
Hosted company management during a conference.
Identifies Coforge as the top pick in its information technology and engineering research and development coverage.
Notes strong demand across banking, insurance, travel, and public sector segments.
Highlights proactive pursuit of large transformation deals, improving visibility.
Observes lower furloughs compared to the previous year, driven by better near-term demand.
Expects revenue to reach $2 billion by the fiscal ending March 2027, implying a compound annual growth rate of 14%.
Jefferies On India Property
Prefers Godrej Properties Ltd., Macrotech Developers Ltd. (Lodha), and DLF Ltd. as top picks in the sector.
Notes that the residential property sector reached six-month highs in October 2024.
Expects strong offtake to drive 25% pre-sales growth for listed companies.
Highlights that the realty index has recovered about half of the 19% decline observed between June and November 2024.
Indicates that double-digit price increases are being sustained due to low inventory levels.
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