Brokerage Views: Nomura On Tata Motors, Nuvama On Bajaj Auto And More

The auto sector is in focus with Nuvama Research sharing its outlook on Bajaj Auto Ltd. and Nomura on Tata Motors Ltd. Citi Research had shared its take on Marico Ltd., while Equirus Capital initiated coverage on Stylam Industries Ltd.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts that you need to know about on Monday.

Nomura On Tata Motors

Maintains a 'buy' rating on the stock and a target price of Rs 1,141 apiece, implying a potential upside of 14% from the previous close.
Jaguar Land Rovers' wholesale and retail volumes improved during the quarter.
Wholesale volumes up 5% YoY at 97,900 units.
Wholesale volume growth in North America is up 38% and 36% in the UK.
Retails at 1 lakh units, up 13% YoY.
Waiting list for Range rover electric improved to 39,000.
Estimates yearly volumes at 3.98 lakh for FY25.
Forecasts JLR EBIT margins by 8.4% versus 8.6% reported YoY.

Nuvama On Bajaj Auto

Maintains a ‘'buy' rating on the stock and raised the target price to Rs 12,000 apiece from Rs 10,340 earlier, implying a potential upside of 25% from the previous close.
Huge addressable market for CNG motorcycles.
First CNG 125cc motorcycle "Freedom" at a starting ex-showroom price of Rs 95,000.
Management expects the size of the addressable market to be 6.5 lakh units per month.
Built-in volumes of 10,000 units per month in the second half of FY25.
Expects 20,000 units per month in FY26 for this model.
Expect Bajaj Auto Ltd.' revenue and Ebitda compound annual growth rate at 12% and 15% over FY24–26.
Expects average return on equity of 35%.
Target price based on 35 times the FY26 earnings along with cash and investments of Rs 876 per share.

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Citi On Marico

Maintains a 'buy' rating on the stock and a target price of Rs 700 apiece, implying a potential upside of 14% from the previous close.
FY25 on a positive note with sequential uptick in domestic volumes.
Continued double-digit constant currency.
Parachute volumes grew in the low single digit, but offtakes were strong.
Saffola edible oils volumes grew mid-single digit due to stability in input and consumer pricing.
Value added hair oils remained under pressure.
Foods and digital-first brands sustained robust growth momentum.
Forecasts 6% consolidated revenue growth YoY.
Forecasts Ebitda margin at 23.5%.
Recurring profit after tax estimate is Rs 430 crore, up by 4% YoY.

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Morgan Stanley On Bank Of Baroda

Maintains an 'equal weight' rating on the stock and a target price of Rs 280 apiece, implying a potential upside of 2% from the previous close.
Decline in loans was led by domestic and overseas.
Gross loan growth moderated and was below system growth.
Deposits declined 2% sequentially after strong 6% growth in the previous quarter.
Loan to deposit ratio at 79.8% versus 79.6% QOQ.

Nomura On Bank Of Baroda

Maintains a 'buy' rating on the stock and a target price of Rs 320 apiece, implying a potential upside of 16% from the previous close.
Overall loan growth in the quarter was soft.
Domestic retail growth was healthy at 3.6% sequentially.
Expects net interest margins to be largely stable sequentially.
Delivery on asset quality will also be a key monitorable.

Equirus Initiates 'Buy' On Stylam Industries

Initiates a 'buy' rating on the stock and a target price of Rs 2,489 apiece, implying a potential upside of 27% from the previous close.
Among India's top four laminate manufacturers with an overall market share of nearly 8%.
India's second largest exporter with exports contributing nearly two-thirds of its revenue.
Posted the highest export and domestic growth among all major players.
Domestic laminate growth to continue as the company scales up its pan-India presence.
Expects acrylic segment to see healthy growth albeit on a lower base.
Enjoys debt-free balance sheet and good return ratios.
Should see a strong operational performance over FY24 to FY27.
Risks include the Red Sea crisis, lack of domestic brand awareness, forex fluctuations, increased competition in laminate exports and high correlation to real-estate growth.
Sept. 25 target price of Rs 2,489 at 25 times its one-year forward price to earnings.

JP Morgan On Info Edge

Maintains an 'overweight' rating on Info Edge (India) Ltd. and a target price of Rs 6,990 apiece, implying a potential upside of 0.9% from the previous close.
Naukri's billing in the first quarter of FY25 accelerated and was in line with estimates, while 99Acres' growth slowed.
JobSpeak index is providing mixed indications for both IT and overall as the index was flat.
Channel checks did not indicate recovery in discretionary spends.
Peak utilisations may drive some IT hiring.
Stock is relatively cheaper and higher quality play on IT recovery.
Consistent improvement in Naukri billings momentum to be driver of stock performance.

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