Brokerage Views: Citi, Nuvama On ONGC, Morgan Stanley On BHEL And More

Brokerages have their eye on Oil & Natural Gas Corp., Ujjivan Small Finance Bank Ltd., and Bharat Heavy Electricals Ltd. and others 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 Wednesday.

Citi On ONGC

Citi maintains 'buy' on ONGC with a target price of Rs 315 per share, implying a potential upside of 13% from the previous close.
Fourth-quarter standalone revenue, Ebitda in line with estimates.
KG project drives production growth, but ramp-up faces delays.
Higher net oil realisation aided by KG production not attracting windfall tax.
Changes FY25/26 Ebitda estimates by 1%/-3%.

Also Read: ONGC Q4 Results: Profit Tops Estimates, Production Rises 2.4% Sequentially

Nuvama On ONGC

Nuvama retains 'reduce' with a target price of Rs 210 per share, implying a potential downside of 25% from the previous close.
Strong oil partially offset by weak gas; windfall tax risk persists.
Weak gross refining margin drags Mangalore Refinery & Petrochemicals Ltd.'s profit.
KG-98/2 production guidance slashed meaningfully over the years.
Cyclical play and production disappointment continues.
Estimates remain unchanged for the company.

Emkay On Ujjivan Small Finance Bank

Emkay upgrades Ujjivan to 'buy' from 'add' earlier with a target price of Rs 65 per share, implying a 23% upside from the previous close.
Robust credit growth along with margin and fee.
Asset quality is normalising.
Expects net interest margins to slightly soften.
Expects return on assets of 2.5–3.1% and 20–23% return on equity over FY25–27.

Nuvama On Hitachi Energy

The brokerage gave a 'buy' rating with a target price of Rs 13,000 apiece from Rs 6,500 per share earlier. This implies over 20% upside from the previous close.
Beats Ebitda/profit-after-tax expectations by 53/66% and long-awaited margin recovery kicked in.
Clocked double-digit margins well before guidance of Q4 FY25.
Revising earnings per share for FY25 by 5% and FY26 by 60% on execution deferment.

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Nuvama On VRL Logistics

Nuvama retains its 'reduce' with a target price of Rs 543 per share from Rs 580 apiece earlier. This implies a downside of 7% from the previous close.
Muted demand adversely impacts performance.
Focus on fleet addition and pressure to continue.
In terms of outlook and valuation, the pain will continue.
Tweaks earnings estimates by 4–6% and values stock at 27 times FY26.

Nuvama On BHEL

Nuvama retains its 'buy' on the company with a target price of Rs 400 apiece, implying a 25.4% upside from the previous close.
Ebitda margin narrows 400 basis points to 8.8% YoY on higher provisioning.
Retains 'buy' given 25GW of thermal total addressable market spread over FY25–26 vs 9.6GW in FY24.
Implies BHEL’s thermal order inflow of 8.4GW/year at 70% market share.
Old legacy projects expected to be completed by FY25.
Estimates earnings per share CAGR of 88% over FY25–27 despite conservative assumptions.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On May 22

Morgan Stanley On BHEL

Morgan Stanley retains 'equal-weight' rating on the company with a target price of Rs 220 per share, implying a downside of 31% from the previous close.
Q4 FY24 revenue and margin were below both brokerage's and street estimates
Operating cash flow was weak on higher net working capital.
Expects ordering momentum to continue with policy makers' thrust on adding thermal capacity.
Believes earnings visibility improving with healthy prospect pipeline.

CLSA On BHEL

CLSA maintains 'sell' call on BHEL with a target price of Rs 189 per share, implying a downside of 41% from the previous close.
Expects large thermal orders may take time to execute.
FY24 gross margins fell for sixth year, management expects this to be bottom.
Believes long gestation orders like Vande Bharat cannot offset continued slow orders.
Retains 'sell' rating given expensive valuation with FY26E earnings per share of 56 times.