Brokerage Views: Goldman Sachs On RIL, UBS On ABB India And More
We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Thursday morning.
Top brokerages, from Goldman Sachs to Citi, have come out with interesting stock calls on a variety of sectors. Goldmand Sachs maintain rating on RIL but raises the target price. Whereas Citi Research remain bullish on OMCs.
Benchmark equity indices snapped their three-day rally and ended lower on Tuesday as losses in heavyweights weighed, while broader indices ended higher.
The Nifty lost 75.90 points, or 0.34%, to close at 22,020.85, while the Sensex ended down 357.98 points, or 0.49%, at 72,473.96.
We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Thursday morning.
Goldman Sachs On RIL
Goldman Sachs maintains 'buy' on Reliance Industries Ltd. The research firm raises the target to Rs 3,400 apiece.
Expects cash return on cash invested to expand by 270 bps to 12% in FY27
Expect capex to fall sequentially
The research firm expects 17% Ebitda CAGR over FY24-27
RIL investments in next 3 years to be less capex heavy, higher in returns with short gestation period
Motilal Oswal On Shree Cement
Motilal Oswal maintains 'neutral' on Shree Cement at Rs 27,700 apiece target price.
Cut Ebitda estimates for FY25/26 by 5% due to pricing pressure
Majority of future expansions to be focused on existing markets
Large part of central, west regions to remain untapped till FY27
Company now focusing on improving brand equity
Expect capacity/volume CAGR of 11%/10% over FY24-26.
UBS On ABB India
UBS retains 'buy' on ABB India. With a price target of Rs 7,550 apiece; upside potential of 26%.
Electrification and motion to drive growth and margins
Believe ABB is best play on infrastructure scale-up in voltage electrification.
Expects significant scope to ramp up voltage electrification portfolio where it trails Schneider and SIEM.
Assume better growth in export orders with premium product mix & operating leverage.
Expect improvement in margins, which should support premium valuation.
Citi Research On Coal India
Citi maintains 'neutral' on Coal India at Rs 430 apiece target
Expects disappointing e-auction price trends in fourth quarter.
E-auction premium to FSA prices at 39% in Feb. 2024, lowest since July 2021.
Expect e-auction volume at 70mt in FY25.
Expects 10% change in e-auction volumes to impact EPS by 2.3%
Key risks: lower volumes on weak power demand
Citi Research On OMCs
Valuations remain undemanding, selectively at discounts to their own history and relative to the market, while ownership trends too remain supportive.
The margin outlook is favourable in both key segments, viz. refining and marketing, which should help integrated margins sustain above historical averages over FY25-26E.
Possibilities under the next government would be a return to dynamic fuel pricing and revival of privatization.
Key risks: Political uncertainty, oil price spike.
