This Thursday morning, brokerages are focusing on a range of key companies following their recent earnings reports. Nuvama continues to express caution on Tata Power despite its growth in the renewable segment, while Citi has made strategic adjustments to its large-cap and mid-cap picks, favouring IndiGo and JK Cement.
Nomura remains bullish on Kaynes Technologies and L&T, highlighting significant growth prospects, while also adjusting its outlook on Five Star Business Finance amid slight concerns about asset quality.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Thursday.
Nuvama on Tata Power
Maintain a 'reduce' rating, with target price unchanged at Rs 356, implying a downside of 14%.
September quarter earnings in line, driven by growth in transmission and renewable segments.
Appreciate Tata Power's renewable transition but see risks outweighing rewards.
Company targets doubling financial year 2023 net profit to Rs 65,000–70,000 crore by financial year 2027; delays could hamper this target.
Current valuations factor in more than bull case; profit growth visibility expected with renewable earnings by financial year 2028.
Citi's India Strategy
Add IndiGo to large-cap picks based on favourable competitive structure.
Replace ACC with JK Cement in mid-cap picks on better risk-reward.
Remove RBL Bank from mid-cap picks following September quarter results.
Key Overweight Sectors: Financials, Telecom, Pharma.
Key Underweight Sectors: Consumer Discretionary, IT, Metals.
Defensive Play Stocks
Large Banks: ICICI, HDFC
Telecom: Airtel, Indus Towers
Pharma & IT Services.
Top 5 Large-Cap Picks
ICICI, SBI Life, IndiGo, Airtel, Sun Pharma.
Nomura On Kaynes Technologies
Maintain 'buy' and raise target price to Rs 6,516 from Rs 5,969, indicating a 23% upside.
Growth tailwinds in smart metres, railways, and EVs; OSAT & PCB segments as long-term catalysts.
Management maintains a Rs 3,000-crore revenue target for financial year 2025 with 15% margins.
Kavach Systems presents a Rs 15,000-crore opportunity, targeting a 15% market share.
Kaynes seen as a key beneficiary of demand tailwinds in multiple sectors; project 56% revenue and 59% EPS CAGR over financial years 2024–27.
Nomura on L&T
Maintain 'buy' with a target price of Rs 4,100, implying an upside of 20.3%.
Financial year 2025 order inflow guidance achievable post September quarter results surprise; revise order inflows up by 2-4% over financial years 2025–27.
Believe core Ebitda margin guidance of 8.25% remains conservative.
Nomura on Five Star Business Finance
Maintain 'buy', but reduce target price to Rs 870, implying an upside of 14%.
Asset quality marginally deteriorated quarter-on-quarter, while margins rose by 4 basis points, leading to record profit.
Management reduced loan growth guidance to 25%, with a yield cut on new loans by about 200 basis points, aligned with macro and regulatory changes.
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