Vodafone Idea remained in focus as several brokerages released mixed views post the company’s Q4 earnings.
Macquarie maintained an Underperform call with a target price of Rs 6.5 per share, citing a soft Q4 that missed estimates due to continued subscriber erosion and higher interest burden. It highlighted that the ongoing erosion of the subscriber base reflects no quick fix to the company’s fundamental challenges and sees challenges in further equity infusion despite the government being the largest shareholder.
JP Morgan has a Neutral call with a target of Rs 8 per share, noting that Q4 was broadly in-line on revenues and EBITDA. It flagged that while capex rose to Rs 4,230 crore from Rs 3,210 crore in Q3, it remained below the estimate of Rs 5,000 crore. The board has approved an equity fundraise of Rs 20,000 crore, and the company is in talks with banks for debt funding.
UBS maintained a Buy call with a target of Rs 12.10 per share, though it noted that Q4 was short of expectations with market share loss continuing. Revenue was down 1% QoQ, while ARPU rose 0.6% QoQ to Rs 164 versus an estimate of Rs 167. UBS will closely watch fundraise updates, capex plans, and 5G rollout progress.
Bharti Airtel attracted positive commentary from Jefferies, which reiterated a Buy call and raised its target to Rs 2,370 per share (implying 12x EV/EBITDA). The brokerage said valuations can re-rate by 30%+, driven by subscriber premiumization. Jefferies also expects a 30% fall in capex intensity given that there are no spectrum renewals required till 2030. The firm projected 14%/17% CAGR in consolidated/India mobile revenues, highlighting a unique mix of growth and rerating potential for Airtel.
IPCA Labs was on radar after Nomura retained a Buy call with a target of Rs 1,590 per share. The brokerage noted that Q4 sales were marginally ahead, though gross and EBITDA margins missed estimates. FY26 guidance was lowered versus previous expectations, but Nomura remains constructive on medium-term earnings growth, supported by margin improvement in the Unichem business.
Apollo Hospitals saw mixed commentary. Nomura kept a Neutral call with a target of Rs 6,856 per share, stating that Q4 revenue was in line, with EBITDA ahead of estimates and PAT 19% above estimates aided by higher other income and lower tax rate.
Morgan Stanley retained an Overweight call but cut its target to Rs 8,058 per share. It liked Apollo’s integrated and tech-driven healthcare ecosystem, citing positive developments such as 24×7 breakeven and the Keimed addition. It expects 3,500+ new beds to drive strong shareholder returns.
Citi remained Buy rated with a higher target of Rs 8,260 per share, noting that Q4 was largely in line with 13% revenue and 20% EBITDA growth YoY. Offline pharmacies performed well, though higher ESOP charges impacted online profitability.
Amara Raja Energy was under watch after Nomura maintained a Neutral call with a target of Rs 1,136 per share. The Q4 margin missed estimates, but the brokerage expects recovery led by price hikes and benefits from the new tubular plant and smelter, though falling imported battery cell prices remain a concern.
In the cement sector, Nomura highlighted that significant price hikes in South India overshadowed moderation elsewhere. Pan-India trade prices are up Rs 2 per bag MoM in June, with Southern region prices rising Rs 19 per bag MoM and Rs 36 per bag QoQ in Q1.
Sun TV came under review after CLSA reiterated a Hold call with a target of Rs 655 per share. FY25 revenue was below estimates, with a 4% YoY decline in ad revenue. The domestic subscription base grew 1% YoY. IPL revenues were reported at Rs 640 crore for FY25, down 3% YoY. CLSA cut FY26/27 revenue, EBITDA, and net profit estimates by 3-6% but still expects a 9% earnings CAGR over FY25-28.
Nykaa was under the spotlight as HSBC downgraded the stock to Hold and cut its target to Rs 200 per share, citing limited clarity on the company’s previous guidance to achieve break-even in the fashion business by FY26.
Citi maintained a Sell call with a target of Rs 160 per share, stating that Q4 EBITDA was in-line at 6.5%. Beauty & Personal Care (BPC) continued broad-based growth, but the fashion segment remains weak, and risks to margin improvement expectations remain.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
