Brokerage Views: Citi On Paytm, Sun Pharma; Nuvama On BEL And More

Brokerages have their eye on Paytm operator One 97 Communications Ltd., Indigo Paints Ltd., Sun Pharmaceutical Industries 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 Thursday.

Citi On Paytm

Citi maintains 'sell' on Paytm with a target price of Rs 360 per share.
Regulatory action impacted Q4 results.
Full impact and bottoming out in Q1 FY25.
Lowered its multiple substantially in April.
Raises multiple to 24 times versus 16 times earlier.
Revises adjusted Ebitda downward by 34%.
Watch for bottlenecks, including onboarding new customers, merchants and payment aggregator licence.

Bernstein On Paytm

Bernstein rates Paytm 'outperform' with a target price of Rs 600 per share, implying a potential upside of 63% from the previous close.
Gross merchandise value at Rs 4.7 trillion during the quarter was down by 8% QoQ.
Ebitda (before ESOP expense) declined 50% both on a QoQ and a YoY basis.
Payment metrics on the GMV front have witnessed a revival in April–May.
Merchant loans have seen early signs of an uptick in April.
Take rate inched up to 5.2%, owing to the shutdown of low take rate postpaid product.

Citi On Sun Pharmaceutical Industries

The brokerage maintains 'buy' on Sun Pharma with a target price of Rs 1,640 per share, an upside of 4.8% from the previous close.
Guidance indicates margin pressure in FY25.
Top line expected to grow in high single digits.
FY25 to be year of investments due to higher research and development spends related to new launches.
Possibility for subdued margins in FY25 and stock may be under pressure in near term.
Underlying business trends and medium/long-term margin-expansion story remains intact.

Nuvama On BEL

Nuvama maintains a 'hold' rating on Bharat Electronics Ltd. with a target price of Rs 270 per share from Rs 195 apiece earlier. This implies a downside of 5% from the previous close.
Beat Street’s Ebitda/profit-after-tax estimate by 14%/21%.
The brokerage remains positive on the company in the long term.
Current valuation of 42 times FY26 is overheated.
Awaits higher growth/margin visibility.
Awaits execution pickup and superior margin delivery over the next few quarters.

Nuvama On Trent

The brokerage maintains 'buy' with a target price of Rs 5,365 per share versus Rs 4,926 apiece earlier. This implies an upside of 16% from the previous close.
Trent’s market share is about 2%/8% of the overall/organised market share.
The company has room to grow its stores 3–4 times.
Sells more than 80% of the apparel at full price.
Revises FY25/26 earnings estimates by 2%/8%.
Valuing the standalone business at 80 times FY26 price–earnings.

Nuvama On Indigo Paints

Nuvama maintains 'buy' on Indigo Paints with a target price of Rs 1,825 per share, implying a potential upside of 30% from the previous close.
Q4 FY24 revenue/Ebitda growth of 18.3%/17.9% came in marginally ahead of their estimates.
Indigo Paints grown by over four times the industry growth rate.
Remains positive on Indigo Paints's ability to improve its presence across states.

Citi On Gland Pharma

The brokerage maintains 'sell' with target price of Rs 1,310 per share, a downside of 27% from the previous close.
Challenge in Cenexy offset strength in baseline business.
Fourth-quarter numbers were flat QoQ and largely in line.
Cenexy performance remains negative due to operational disruptions/breakdowns.
Potential to deliver high-teens growth in medium to long term.
FY25/2 growth has to come from new launches.

Nuvama On Minda Corp

The brokerage maintains 'buy' with a target price of Rs 530 per share, an upside of 24% from the previous close.
New lifetime orders received at Rs 9,000 crore over past two years.
Provides strong revenue visibility.
Strong play on premiumisation, regulatory changes and disruptions, such as rising EV penetration.
Recently entered into a partnership with HCMF (Taiwan) for sunroof systems.
Addressing this planned the construction of a greenfield plant in the second half of FY25.
Trimming FY25 estimate by 4%, factoring in subdued outlook for overseas business.
Outpace industry with revenue/Ebitda CAGR of 15%/21% over FY24–26.

Morgan Stanley On Grasim Industries

The brokerage maintains 'equal weight' rating with a target price of Rs 2,560 per share, an upside of 5% from the previous close.
Viscose business did well, while chemicals were weak.
Their calculations for paints and B2B business suggests combines Ebitda loss of Rs 1 billion.
Ebitda margins were better than expected helped by lower costs.

Jefferies On Jubilant FoodWorks

The brokerage maintains 'hold' and cuts the target price to Rs 475 per share from the earlier Rs 500 apiece.
Recorded low margins but delivery growth picks up.
Company saw some stabilisation in like-for-like sales growth in Q4.
Delivery trends improved. However, dine-in was severely under pressure.
Focus on volumetric growth by offering value and new customer acquisition.
FY25 to see 180 store additions in Domino's, 50 Popeyes stores and 25 Hong's Kitchen stores.
A pick-up in same-store sales growth holds the key to price performance.

Morgan Stanley On Jubilant FoodWorks

The brokerage maintains its 'equal weight' rating with a target price of Rs 427 per share, implying a potential downside of 11% from the previous close.
The current operating deleverage cycle has resulted in significant cuts to estimates.
Improved underlying demand remains key to a recovery.
LFL turned positive on a weak base.
Delivery ticket size decline was partially offset by the introduction of packaging charges.

Citi On Jubilant FoodWorks

Citi maintains 'buy' and cuts the target price to Rs 565 per share from the earlier Rs 590 apiece, implying a potential upside of 14% from the previous close.
Worst may be behind, while LFL and margin outlook strong.
Positive LFL for delivery bundled with recent initiatives to restrict dine-in sales.
Volume/order growth and market-share gains to aid concerns around competitive intensity.
Guidance of 50 store expansion for Popeyes in FY25 should drive confidence among investors on scalability.
Cuts FY25–26 revenue estimates by 3–4% and Ebitda estimates by 8–9%.
Earnings cuts may drive near-term stock price weakness, sees scope for re-rating.
Sees any stock price correction as an opportunity to buy.

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