Here’s a roundup of the latest brokerage recommendations and target price updates for leading stocks on October 8, 2024.
1. Nomura on Tata Motors
- Rating: Buy
- Target Price: Rs 1,303 (41% upside from CMP: Rs 928.30)
- Key Insights: JLR reported a 3% YoY drop in retail volumes and a 10% drop in wholesale volumes for 2QFY25. However, Nomura expects JLR’s sales to improve in the second half of FY25 with a 3% YoY growth, and EBIT margins at 8.3% for FY25.
2. CITI on Nykaa
- Rating: Sell
- Target Price: Rs 165 (15% downside from CMP: Rs 194.55)
- Key Insights: Despite strong growth in the Beauty & Personal Care (BPC) vertical, fashion continues to lag. Citi expects Nykaa’s revenue to grow 25% YoY with EBITDA margins improving 100bps QoQ to 6.3%.
3. Nomura on Nykaa
- Rating: Neutral
- Target Price: Rs 203 (4.5% upside from CMP: Rs 194.55)
- Key Insights: Nomura expects 26% YoY growth in revenue for 2QFY25, driven by the BPC segment, but this is still below the firm’s FY25 estimate of 29% YoY growth and 7.5% EBITDA margins.
4. HSBC on Cable & Wire OEMs
- Polycab: Retain Buy, TP raised to Rs 7,800 (10.5% upside from CMP: Rs 7,059.00)
- KEI Industries: Retain Hold, TP raised to Rs 4,350 (5.5% upside from CMP: Rs 4,120.00)
- R R Kabel: Retain Hold, TP Rs 1,900 (8.3% upside from CMP: Rs 1,754.00)
- Key Insights: Strong demand tailwinds persist, but copper volatility and a high base may impact EBITDA margins across the sector.
5. HSBC on Zomato
- Rating: Buy
- Target Price: Rs 330 (24% upside from CMP: Rs 265.00)
- Key Insights: HSBC noted that food delivery competition is stabilizing, with Zomato positioned to improve its take rates. Swiggy’s slower pace in quick commerce compared to Blinkit also gives Zomato an advantage.
6. CLSA on M&M
- Rating: Upgrade to Outperform
- Target Price: Rs 3,400 (11% upside from CMP: Rs 3,062.00)
- Key Insights: CLSA sees M&M benefiting from its strong SUV lineup and expects the domestic tractor market to recover in FY26. Rising ROE and a robust product pipeline are expected to drive re-rating.
7. Nomura on Info Edge
- Rating: Buy
- Target Price: Rs 8,280 (3.5% upside from CMP: Rs 8,000.00)
- Key Insights: Strong recovery in Naukri billings with 16.5% growth in the real estate (99acres) segment. However, billings in education and matrimony segments were below expectations.
8. CITI on Info Edge
- Rating: Buy
- Target Price: Rs 8,320 (4% upside from CMP: Rs 8,000.00)
- Key Insights: Recruitment billings growth improved to 14% YoY in 2QFY25, sustaining the momentum from 1Q. Citi expects an 11% YoY rise in EBITDA with improved margins from non-recruitment verticals.
9. BOFA on Godrej Properties
- Rating: Maintain Neutral
- Target Price: Rs 3,500 (22.8% upside from CMP: Rs 2,850.00)
- Key Insights: BOFA highlighted a robust Q2 performance with an uptick in cash metrics and favorable pricing trends in key markets like NCR and Bangalore. The outlook for H2 remains positive with the sales trajectory expected to outperform the sector.
10. Nuvama on Skipper
- Rating: Buy
- Target Price: Rs 650 (44.4% upside from CMP: Rs 449.90)
- Key Insights: Skipper is poised for a strong performance driven by high voltage transmission and distribution (T&D) capex under the proposed NEP. With a doubling of tower capacity, Nuvama expects strong tailwinds from domestic and export order inflows.
11. Morgan Stanley on Trent
- Rating: Overweight
- Target Price: Rs 8,032 (6.8% upside from CMP: Rs 7,520.00)
- Key Insights: Trent’s foray into the beauty segment with Zudio Beauty is gaining traction. BPC sales have shown significant growth, increasing the overall contribution of emerging categories to 20% of revenue.
12. UBS on Aurobindo Pharma
- Rating: Maintain Sell
- Target Price: Rs 1,333 (8.3% downside from CMP: Rs 1,453.00)
- Key Insights: UBS noted significant compliance issues in Aurobindo’s API unit 2 after a recent US FDA inspection. The plant received 10 observations related to shared equipment, inadequate training, and insufficient quality reviews. UBS expects the impact to weigh on performance if integrity issues are confirmed.
Disclaimer: The above information is a summary of brokerage reports and should not be considered as the opinion of the author or the publication. The target prices, ratings, and opinions expressed in these reports are those of the respective brokerage firms and do not reflect the views of the author or this publication. Investors are advised to perform their own research and consult with their financial advisors before making any investment decisions. Neither the author nor the publication is responsible for any losses incurred based on the information provided.
