Brokerage Views: Nuvama Upgrades Marico, Emkay On Godrej Consumer And More

Brokerages have Marico Ltd. Mahindra & Mahindra Financial Services Ltd., Britannia Industries Ltd. and Godrej Consumer Products Ltd. on their radars following the release of these companies' fourth-quarter earnings.

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.

Nuvama Upgrades Marico

Nuvama upgrades Marico to 'buy' from 'hold'.
Target price raised to Rs 640 from Rs 574, implying an upside of 20%.
Revenue, EBITDA growth in line with estimate.
Domestic volume rose 3% YoY with flat revenue.
Worst is behind given early signs of rural revival, good rain, hike in Parachute price.
Raising FY26E EPS by 3.4% and target PE from 38x to 40x.

Citi Research On Marico

The brokerage maintains a 'buy' with a target price of Rs 610 per share (14.8% upside from previous close).
In-line numbers, growth in volume offset by price deflation.
Expects the volume trajectory to improve in FY25.
Growth expected to be led by continued focus on innovations along with strong growth in international business.
Multiple remains unchanged at 42 times the FY26 earnings per share.

Citi On Britannia

The brokerage maintains 'buy' with a target price of Rs 6,000 per share (upside of 18.6% from the previous close).
Expects growth acceleration in FY25 as management guided to faster revenue/volume growth in FY25.
Growth could have been led by corrective interventions (price cuts) and focus on the organized channel.
Company will focus on improving the assortment and adjacent categories at the high-potential stores.
Distribution expansion in rural markets continues to drive share gains in under-indexed states.
Britannia remains one of our top-picks in the sector.

Emkay On Godrej Consumer

The brokerage maintains 'add' with a target price of Rs 1,350 apiece (Upside of 10% from previous close).
Inline sales growth of 6%, better margin at 22.3%.
Domestic business performance missed expectations.
The company has recognised the impairment charge of Rs 1,390 crore towards Brand and Goodwill for the Africa cluster.
Will review their estimates following the investor meeting scheduled for May 7.
Values the company on 50 times price to earnings, at 20% premium to its last five-year average forward P/E.

Motilal Oswal On M&M Financial Services

The brokerage retains its 'buy' rating with a target price of Rs 325 per share (25% upside from the previous close).
Adjusted for provisions on Mizoram fraud, profit after tax would have been Rs 720 billion.
Marginal expansion in spreads and better fee income drives net interest margin gains.
Currently trades at 1.5 times its FY26 price to book value.

Nomura On M&M Financial Services

Nomura maintains 'reduce' rating on Mahindra & Mahindra Financial Services with a target price of Rs 240.
Cut in FY25 guidance across all parameters.
Subdued disbursement but healthy AUM growth trends continued in April.

Citi On Cartrade Tech

The brokerage maintains 'buy' with a target price of Rs 950 per share (upside of 17% from the previous close)
Sustained focus on cost-controls enabled decent margin performance.
Commentary signalled confidence on Ebitda margins expansion in consumer businesses.
Estimate OLX profit and loss explicitly.
Values the business on 20 times FY26 EV/adjusted Ebitda, given OLX's currently lower growth profile.

Nomura On Cartrade Tech

Nomura maintains 'buy' on Cartrade Tech with a target price of Rs 982.
Ebitda ahead of estimates across segments.
Adjusted Ebitda margin of 23.2% was ahead of Nomura estimates of 18.9%.
Expects healthy 20% revenue CAGR (FY24–26).
Better execution in OLX may drive further upside.
High operating leverage is likely to drive a 25% profit before tax CAGR (FY24–26).
Revenue estimates are unchanged; earnings per share is revised higher by 9% in FY25/26.
Targets EV/sales at seven times for the consumer/OLX business.

Nuvama On CG Power & Industrial Solutions

Nuvama maintains 'buy' ratings with a target price of Rs 640 per share (17.2% upside from previous close).
Q4 PAT in line despite a continuation of motors de-stocking in industrials.
Expect normalised levels of 15–16% margins in industrials post general elections.
Management expects railways would grow by 40% YoY in FY25.
Railway tech tie-up with South Korean major can add optionality over FY25–26.

Kotak Institutional Equities On Hindalco Industries

Kotak maintains 'add' on Hindalco Industries with an unchanged target price of Rs 675.
Novelis' Q4FY24 adjusted Ebitda marginally higher than estimate
Novelis' demand improved in America, whereas Europe and Asia remained under pressure.
Demand in the aero and auto segments remains robust.
Solid summer demand in Brazil further improves outlook in key markets.
Expect Novelis' leverage to remain below 2.5 times over next three years, despite a pickup in growth capex
Sees an upside risk due to volume recovery and favourable scrap spreads.

Nomura On Lupin

Nomura maintains 'buy' on Lupin with a target price of Rs 1,949.
Revenue was up 13% year-on-year and 1.5% below Nomura's estimate
Ebitda margin expansion quarter-on-quarter was despite a seasonally weak quarter, higher R&D spend
Expects stronger FY25. Growth across key geographies and improvement in margins.

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