Brokerage Views: Citi On Aurobindo Pharma, Motilal Oswal On Happy Forgings, Cello World, Nalco And More

Companies like Happy Forgings Ltd., Cello World Ltd. and Aurobindo Pharma Ltd. are on brokerages' radar following the release of these companies' fourth-quarter results.

NDTV Profit tracks what the brokerages are putting out on specific stocks. Here are all the top calls from the brokerages that you need to know about on Tuesday.

Motilal Oswal On Happy Forgings

The brokerage maintains 'buy' on Happy Forgings with a target price of Rs 1,260 per share, implying a potential upside of 15% from the previous close.
Healthy performance despite weakness in core segments.
Diversifying into industrials and exports, contributed 12%/20% FY24 revenue, compared to 4%/12% in FY23.
Margin improvement with a higher share of machining and better product mix.
Management is confident of achieving 15–20% growth in the coming years.
Raises FY25/26 earnings by 3.5%/4.8%.
Factors better-than-expected outlook for industries, new order wins.

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Motilal Oswal On Cello World

Motilal Oswal maintains a 'buy' on Cello World with a target price of Rs 1,090 per share, an upside of 25% from the previous close.
Earnings in line with estimates, led by volume growth of 8%.
Lower raw material costs and better product mix drive margin expansion.
The management guides 15–17% revenue growth, led by volume growth.
Management laid down growth strategy for new product launches, premiumisation of consumerware products and increasing glassware capacity.

Citi On Aurobindo Pharma

The brokerage maintains a 'sell' call on Aurobindo Pharma with a target price of Rs 1,040 per share.
Though the Q4 numbers were slightly ahead, margin expansion seems to be peaking out.
Softening of the raw material prices may continue to benefit in the near term
Raw material costs have helped the company report healthy margins in FY24.
Going ahead, US injectable/specialty sales are expected to remain largely stable.
If the generic pricing trends start worsening, the company may find it difficult to sustain the current margins.

Nuvama On Aurobindo Pharma

Nuvama retains 'buy' on Aurobindo Pharma and raised the target price to Rs 1,400 per share from the earlier Rs 1,180 apiece.
Strong growth in injectables with operational efficiency led to margin beat.
Builds in 13%/15% Ebitda/PAT CAGR over FY24–26.
Substantial rise in core working capital a key concern.
Expects US revenue to reach $1.85/$1.9 billion in FY25/26.
Vizag facility is likely to be back up of unit-III and for new ANDA filings.
Commentary on biosimilars implies ability to drive down cost, generate over 50% margin.

Nuvama On Century Plyboards

Nuvana downgraded Century Plyboards (India) Ltd. to 'reduce' from 'hold' with a target price of Rs 582 per share from the earlier 716 apiece.
Growth is supported by capacity addition across segments.
Elevated timber cost continues and pain is likely to continue in medium-density fiberboard.
Capex on track and BIS norm implementation is the key.
Cuts FY25E/26 earnings per share by sharp 20%/24%.
Valuations based on 28 times FY26 EPS.

Emkay On Century Plyboards

The brokerage maintains a 'buy' with a target price of Rs 800 per share, an upside of 22% from the previous close.
Recovery in profitability owing to improved performance in plywood division.
Demand for the wood panels segment is expected to remain sluggish in the near term.
The Ebitda margin of medium-density fibreboard to be under pressure due to increasing supply and higher imports.
Expected sales growth of 10% in plywood and of 40% in MDF.
Management expects demand to pick up from 2025.
Near-term weakness and MDF margin pressure cut estimate by 18% FY25.
Maintains buy as it likes Century's integrated business model.
Leadership position and higher growth visibility; based on 34 times P/E FY25.

Motilal Oswal On Bosch

The brokerage maintains a 'neutral' rating with a target price of Rs 28,535 per share, a potential downside of 9% from the previous closing.
Q4 performance hit by weak demand for CVs and tractors.
Industry growth likely to moderate in 2024.
Higher other income and lower tax led to profit after business beat.
Weak tractor demand dents growth for mobility division.
Recent run-up led to stock trading at 33 times FY26, appears fairly valued.

Motilal Oswal On Nalco

The brokerage maintains 'neutral' on National Aluminium Co. with a target price of Rs 180, a 6.8% potential downside from the previous close.
In Q4, Nalco recorded an exceptional income of Rs 430 crore from royalty expense reversal.
Khanij Bidesh India Ltd.'s exploration deal strengthens Nalco's market presence, and diversifies its product range.
Full capacity operation expected over next two years.
Next growth phase is likely post May 2025 with an additional 1 MT stream of alumina refinery.

Citi On Gujarat Gas

Citi maintains a 'sell' on Gujarat Gas with a target price of Rs 450 per share, a downside of 18% from the previous close.
Company facing challenge of high prices of liquefied natural gas due to its high spot LNG dependence.
Higher gas-to-propane switching in the Morbi market has impacted volumes.
Decline in LNG prices or better long-term gas supply mix key going forward.
Risk reward not attractive on higher valuations versus peers.

Citi On Indraprastha Gas

Citi maintains a 'buy' on Indraprastha Gas with a target price of Rs 550 per share, a 19% upside from the previous close.
Company enjoys a clear first-mover advantage in the city gas distribution business in the National Capital Region.
Overall volume growth for the company will remain robust.
Strong volume growth on improved compressed-natural-gas economics, expansion focus, focus by original equipment manufacturers on CNG.
Delhi government's EV policy on cab aggregators is a sentiment overhang.
Key downside risks include lower CNG conversions and sharp rise in domestic gas prices.

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