Several stocks are in focus today, March 24, 2025, following fresh updates and ratings from leading brokerages:
ICICI Bank is in the spotlight after Citi reiterated its Buy rating with a target price of ₹1,600 per share. Citi anticipates a positive NIM bias in Q4, though a potential 50 bps rate cut could impact FY26 margins by 20–25 bps. The brokerage noted that unsecured stress is stabilising and credit cost normalisation may begin in FY26, supported by chunky corporate recoveries. Citi also highlighted the bank’s efforts to optimise personal loan sourcing, boost credit card usage, and strengthen deposit mobilisation.
Petronet LNG and other gas stocks gained attention after CLSA reported that amendments to gas transmission tariff regulations have been proposed and are currently under public consultation. The open house discussion is expected by mid-April, with formalisation likely by the June 2025 quarter. CLSA suggests that these changes could lower opex for IGL and MGL, while enabling higher tariffs for GSPL and GAIL. However, industrial customers like GGas may see slight cost increases.
Manappuram Finance received coverage from Morgan Stanley, which maintained an Equal Weight rating and raised the target price to ₹220 from ₹180. MS stated that Bain Capital’s proposed entry as promoter could bring long-term strategic clarity. While EPS estimates for FY25-27 remain unchanged, MS expects valuation reassessments in the near term.
REC remains a high-conviction Outperform pick for CLSA, with a target price of ₹525. CLSA noted that the Ministry of Power has given additional CMD charge to Parminder Chopra. Given REC’s history of external top-level appointments transitioning to key government roles, CLSA believes any management-related risk is operational and short-term. The financial outlook remains intact.
DLF came under coverage from Morgan Stanley, which kept an Equal Weight rating with a ₹910 target. MS highlighted the company’s focus on growing its IP business through capex while maintaining caution in its DP segment. Despite the high investments, DLF is expected to double PAT and cash flows by FY30, with rental income targeted to reach ₹1,000 crore by then.
Jindal Stainless was covered by Nuvama, which maintained a Buy call but cut the target price to ₹723. The brokerage pointed to weak export demand and high imports, prompting management to issue a conservative FY26 outlook. With Q4FY25 EBITDA/t guided at ₹16,000, JSL is diverting volumes to lower-margin segments and has delayed its downstream Jajpur expansion by 8–9 months. Nuvama revised down EBITDA estimates for FY25-27 by up to 13%.
Other key sector insights:
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Jefferies hosted six financial firms at its Asia Forum. HDFC Bank remains confident in deposit and loan growth, while IDFC Bank noted stress in MFI. HDFC Life and ICICI Pru Life await clarity on distribution regulations. Paytm sounded positive on its merchant business and retail loans outlook.
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Morgan Stanley highlighted weak paint demand in Q4 from 24 surveyed dealers. While rural demand may recover in April/May, urban recovery is expected later.
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HSBC reported that power demand picked up in February and continues rising through March, with negligible shortages. Government extended Section 11 in anticipation of a 270GW+ peak this summer.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks, and readers should conduct their own research or consult a financial advisor before making any investment decisions.
