Nomura | Business Upturn

Havells share price: Buy, Sell or Hold? What brokerages say after Q4 earnings beat

News Desk — Wed, 23 Apr 2025 02:35:17 +0000

Havells India delivered a strong Q4FY25 performance, posting a 20.2% YoY jump in revenue to ₹6,543 crore and a 15.7% rise in net profit to ₹517 crore. Earnings per share also improved to ₹8.26 from ₹7.13 YoY. The robust performance was driven by healthy growth in Lloyd and cables & wires segments, prompting a range of reactions from brokerages — spanning from ‘Neutral’ to ‘Buy’ — depending on the outlook for margins and demand recovery.

Morgan Stanley on Havells share price (Overweight | Target Price: ₹1,942)

Morgan Stanley maintained its Overweight stance, noting a 4% revenue beat led by Lloyd’s 40% YoY growth and a 20% YoY rise in emerging categories. EBIT margins outperformed expectations across all segments, especially in ECD, Lloyd, and others, while Switchgear, Lighting & Cables saw some decline. Revenue (ex-Lloyd) grew 14% YoY, with EBIT margins (ex-Lloyd) at 13.9%, still better than the 12.8% estimate.

Nomura on Havells share price (Buy | Target Price: ₹1,873)

Nomura reiterated a Buy call, stating that Q4 margins were ahead of estimates and highlighted demand tailwinds in Cables & Wires (C&W) and Lloyd. It expects 15-16% revenue growth (ex-Lloyd) over FY26-27 driven by operating leverage. The brokerage sees current valuations at 44x FY27F EPS as attractive considering the positive outlook.

JP Morgan on Havells share price (Neutral | Target Price: ₹1,700)

JP Morgan remains Neutral, saying the margin-led Q4 beat was slightly offset by a cautious near-term demand narrative. It noted better-than-expected revenue growth in Cables (+21%) and Lloyd (+39%). EBIT margin improvements in Switchgear (+750bps q/q), ECD (+120bps y/y) and Lloyd (+340bps y/y) were significant, though management stayed non-committal on medium-term guidance.

Jefferies on Havells share price (Hold | Target Price: ₹1,800)

Jefferies maintained a Hold, pointing to strong Q4 performance driven by C&W (+21%) and Lloyd (+40%), which boosted operating leverage and PAT. However, it warned of headwinds from urban inflation and commodity volatility. The high valuation — 60x FY26e PE, 30% above the 10-year average — also prompted caution.

CLSA on Havells share price (Outperform | Target Price: ₹1,915)

CLSA sees Havells as a solid performer, rating it Outperform. Q4 revenue/EBITDA growth stood at 20%, with Lloyd and C&W leading the way. The brokerage acknowledged strong primary offtake for Lloyd but highlighted weakness in secondary sales due to a delayed summer. It cut the target multiple to 55x (from 60x) due to rising competition in C&W.

Nuvama on Havells share price (Buy | Target Price: ₹1,890)

Nuvama is bullish, citing a strong all-round beat in Q4. Revenue rose 20% YoY, exceeding estimates by 16%, led by C&W (+21%) and Lloyd (+40%). EBIT margins improved by 230bps YoY, supported by performance in Switchgear and Lloyd. That said, it noted concern over secondary RAC sales, particularly in southern India during March and April.

Disclaimer: The above views are of the brokerages and not of the publication or author. Investors are advised to consult their financial advisors before making any investment decisions.

Why is Nomura bullish on Anant Raj stock? Check details and target price

Aditya Bhagchandani — Mon, 10 Feb 2025 06:51:12 +0000

Nomura has initiated coverage on Anant Raj Ltd with a ‘buy’ rating and a target price of ₹750. The brokerage firm highlighted that the company is well-positioned to execute its medium-term data centre and cloud expansion targets. Anant Raj also enjoys a favorable financial standing with its net debt and equity levels, as noted by the brokerage.

Nomura emphasized the growing demand in Anant Raj’s global cluster, particularly in early recovery data, which is expected to enhance the residential segment’s cash flow generation capabilities. The company is on track to launch two to three projects in the upcoming year and an additional three projects by FY26, adding momentum to its growth trajectory.

Risk-Reward Analysis
The brokerage observed that the share’s risk-reward balance leans heavily towards ‘reward’ after the stock’s recent correction of around 30% in the past month, significantly underperforming the Nifty 50 index, which only saw a 1% decline. Nomura attributed the correction to a broader sell-off in technology stocks, driven by concerns over emerging low-cost AI models.

Robust Residential Segment and Data Centre Expansion
A significant portion of Anant Raj’s cash flow is expected to come from the residential projects, especially the upcoming project in Sector 63A, Gurugram, which will be developed on a legacy land parcel already acquired by the company. The brokerage also pointed out that half of the capital expenditure for these projects can be funded through internal accruals.

Nomura downplayed concerns over pricing risks in the data centre segment, arguing that India remains an under-penetrated market in this space. Policies like the Digital Personal Data Protection Act, 2023, are expected to bolster the demand for locally based data centres and cloud services, thus supporting Anant Raj’s long-term growth outlook.

Stock Performance
Anant Raj shares gained 1.70% today, trading at ₹629.00, up by ₹10.50 from its previous close of ₹618.50. The stock recorded a day’s range of ₹610.45 to ₹635.00 with a market capitalization of ₹214.84 billion. The company’s P/E ratio stands at 55.00, and its dividend yield is 0.12%, reflecting its promising growth trajectory.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Nomura maintains ‘Buy’ call on Crompton Consumer, sees 12.8% upside

News Desk — Thu, 26 Sep 2024 03:15:12 +0000

Nomura has reiterated its ‘Buy’ call on Crompton Consumer Electricals, setting a target price of ₹498/share, which implies a potential upside of 12.8% from the current market price of ₹441.55/share. Following an analyst meeting with the management, Nomura remains confident in the company’s strategic initiatives and long-term growth outlook.

The company emphasized that its premiumisation focus across segments is on track, with multiple initiatives continuing to push this strategy. In the fans segment, Crompton expects to benefit from stricter government regulations on efficiency norms with the introduction of BEE 2.0 norms in FY26 and BIS quality checks, which are likely to drive market share gains for organized players.

Crompton is also focusing on expanding alternate channels like modern trade and e-commerce, which it believes will support its premiumisation drive.

On Butterfly Gandhimathi Appliances, which Crompton acquired, the management stated that the restructuring phase is largely complete and that revenue growth should become more visible in the second half of FY25.

Nomura noted that while Q1FY25 was boosted by a strong summer season, growth in non-summer categories has remained steady and is expected to continue similarly in Q2FY25. Despite trimming FY25-27 estimates by 1-3%, Nomura remains positive, projecting a revenue/EBITDA/PAT CAGR of 13%/22%/27% over FY24-27E.

Nomura initiates Buy call on Macrotech Developers, expects 29.2% upside in the stock price

News Desk — Mon, 16 Sep 2024 03:08:30 +0000

Nomura has initiated coverage on Macrotech Developers with a “buy” rating and a target price of Rs 1,600. The firm highlighted the company’s solid earnings visibility supported by well-structured capital-allocation strategies and visible rerating triggers. Nomura expects Macrotech’s pre-sales to grow at a 20% CAGR over FY25-26F.

The company also has significant potential to exceed its business development (BD) goals, ensuring sustained future growth. Additionally, Macrotech’s Palava project is on the verge of major infrastructure upgrades, which are expected to drive both volume and price growth.

Currently, the stock trades at 32x its forecasted 2025 EV/EBITDA. However, Nomura identified key risks, including a potential slowdown in the Indian residential market or delays in the planned infrastructure upgrades around Palava.

Nomura raises target price for Lupin shares, expects stock to rally 10%

Arunika Jain — Fri, 30 Aug 2024 02:38:32 +0000

Nomura has issued a “Buy” rating on Lupin, raising its target price to Rs 2,427, reflecting strong confidence in the company’s growth and profitability prospects across key markets. The brokerage emphasizes that Lupin is likely to attract a premium compared to its peers due to several favorable factors.

Key Drivers of Growth

1. US Generics Support: The US generics market is expected to provide robust support to Lupin’s near-term earnings, bolstered by a strong pipeline of products.

2. Complex Injectable Filings: Lupin has gained traction with several complex injectable filings, which are anticipated to be commercialized over the next two years. This could significantly enhance revenue streams.

3. Litigation-Dependent Upsides: The company has specific litigation-dependent opportunities that may further bolster its earnings in the near term.

4. Revenue Contributions: Nomura has factored in higher revenue contributions from products like Mirabegron in FY25 and Tolvaptan in FY26/27, revising its earnings per share (EPS) estimates upwards by 28% for FY25 and 54% for FY26.

The narrative surrounding Lupin’s US prospects is expected to dominate discussions, particularly concerning potential downside risks related to specific products such as Albuterol MDI. Overall, Nomura’s optimistic outlook highlights Lupin’s strong position in the pharmaceutical market, indicating a promising trajectory for both growth and profitability.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Nomura predicts boost in FII flows, infra & manufacturing sectors if NDA forms stable government

News Desk — Mon, 03 Jun 2024 03:28:18 +0000

As the nation eagerly awaits the official election results, exit polls are strongly indicating a victory for the Bharatiya Janata Party (BJP) over the INDIA alliance. This anticipated outcome has caught the attention of financial institutions and market analysts, who are closely monitoring the potential impact on the economy and various sectors.

Nomura, a leading global financial services group, has shared its insights on the exit polls and their implications for the equity market. According to Nomura, if the actual results align with the predictions of the exit polls, the equity market is expected to react positively. This optimistic outlook is based on the assumption that a stable government led by the National Democratic Alliance (NDA) will be formed, as suggested by the exit poll results.

The potential formation of a stable NDA government is expected to boost foreign institutional investor (FII) flows into the country. FIIs play a crucial role in the Indian equity market, and their increased participation can lead to a surge in market activity and investment. Nomura believes that the improved political stability and policy continuity associated with an NDA government will attract more foreign investment, thereby strengthening the overall market sentiment.

Furthermore, Nomura anticipates that certain sectors will outperform in the near term, particularly those related to infrastructure, manufacturing, and capital expenditure (capex). These sectors are likely to benefit from the BJP’s focus on economic growth, development, and the government’s push for infrastructure projects and initiatives such as “Make in India” and “Atmanirbhar Bharat” (self-reliant India).

While the exit poll results provide an initial indication of the election outcome, it is important to note that the actual results may differ. Market participants and investors will closely monitor the official election results to assess the potential impact on the economy and specific sectors. The formation of a stable government and the implementation of growth-oriented policies will be key factors in determining the long-term trajectory of the Indian equity market.

The exit polls suggesting a BJP victory have generated optimism in the financial markets. If the actual results align with these predictions and the NDA forms a stable government, the equity market is expected to react positively, with increased FII flows and outperformance in sectors such as infrastructure, manufacturing, and capex. However, the actual election results will provide a clearer picture of the political landscape and its implications for the economy and market sentiment.

Nomura upgrades Vodafone Idea, increases target price sharply

Markets Desk — Tue, 21 May 2024 01:38:27 +0000

Brokerage firm Nomura in its latest note has upgraded the telecom player Vodafone Idea to Neutral and has increased its target price for Vodafone Idea stock to Rs 15 against Rs 6.5 earlier. The brokerage believes that the outlook for the overall industry has improved considerably.

All players aligned on the need for ARPU hikes and the industry setting into a 3-private player market. The three private players currently are Jio, Bharti Airtel and Vodafone Idea. As said by the management of Airtel in their Q4 earnings call, Nomura also expects a 15% hike in tariffs post the conclusion of Lok Sabha elections 2024. Tariff hike also remains a key trigger for the Vodafone Idea stock, Nomura added. Furthermore, it expects the government to offer some form of relief to the company when payments in FY25 come up.

“A long journey remains to be traversed, but the tempest has largely passed and VIL is gearing up to meet clear skies ahead,” said Nomura.

Executive Sales Head of Nomura Arrested for Smuggling Watches

Sidharth Badlani — Sun, 30 Jul 2023 04:11:01 +0000

According to a person with knowledge of the situation, Samir Sheth, head of executive sales at Nomura Financial Advisory and Securities (India), has been detained for allegedly attempting to sneak in expensive watches.

When questioned about the arrest, the company did not confirm or deny it.

A Mumbai citizen was detained by the Directorate of Revenue Intelligence (DRI) last week at the Kolkata airport for bringing a Greubel Forsey watch into the country without declaring it to customs officials. Over 36% in customs duty is applied to these timepieces.

34 of these high-end watches were found during a search of his home in an affluent complex in Kolata; some reports estimated their value to be above Rs 30 crore.

The Mumbai Zonal Unit of DRI stated in a release that watches from upscale foreign brands, including Greubel Forsey, Purnell, Louis Vuitton, MB and F, Mad, Rolex, Audemars Piguet, and Richard Mille, were discovered in the home.

Greubel Forsey was listed as one of the top independent watchmakers to know by Christie’s, an art and luxury enterprise.

As “sculptors of time, choreographers of the passing hours, and architects of watch movement – with a screwdriver for a brush, a propelling-pencil for a quill, and steel or gold as our support,” the Swiss high-end watch firm, founded in 2004, describes itself.

Nomura initiates coverage of Zomato, sets target price and 19% downside

Yakita Somani — Mon, 22 Aug 2022 08:54:46 +0000

Foreign brokerage Nomura started following Zomato and set a target price of Rs. 50 and a “Reduce” rating. The target indicates a potential 18.56% decline from the closing price of Rs. 61.40 on Friday.

Nomura India stated that achieving a double-digit contribution margin in the food delivery (FD) industry is a difficult task and that it anticipates Zomato’s food delivery business to reach profitability by Q1FY24, excluding Blinkit, at the adjusted Ebitda level. It claimed that in a market with a duopoly, disciplined execution would drive this.

Zomato reported earlier this month that its food delivery service had achieved profitability. By March 2023, the food aggregator, based in Gurugram, hopes to achieve overall break-even.

Zomato’s long-term goal of achieving a double-digit contribution margin “depends on a rise in commissions from restaurants (we expect it to rise from 15% in FY22 to nearly 17.5% in FY31F) and charging higher customer delivery fees (we believe this would be difficult, and expect it to remain steady at 6%),” it said.

The brokerage anticipates a contribution peak of 7.5% margin overall. In markets where online FD is more established and consumers are more willing to pay for convenience, it anticipates a 4.5% adjusted Ebitda margin on gross order volumes (GOV) by FY31 compared to global FD companies’ long-term targets of 4-8%.

Vikas Lifecare multibagger penny stock: Forbes EMF, Nomura Singapore Ltd invest

Dipankar Ray — Tue, 07 Jun 2022 06:52:58 +0000

Reports confirm that Nomura Singapore Limited, Forbes EMF, and AG Dynamic Funds are the companies that have taken an interest in the multi-bagger penny stocks of Vikas Lifecare. The board of directors of the company had made it clear about the allotment of 12,50,00,000 shares to the company. As per reports, the board has allotted 5,40,00,000 to Forbes EMF, another 4,40,00,000 shares to Nomura Singapore Limited and a total of 2,70,00,000 to AG Dynamic Funds.

Vikas Lifecare is a leading company in the rade of industry-standard rubber and polymer compounds. The shares have given a stellar return to all its shareholders this past year. In the last month, the company’s shares have apprised from 4.60 to 5.40 a piece delivering over 15 per cent of return to all its shareholders.

Vikas Lifecare receives investments

In the year-to-date time, the penny stock in question has given around a 25 per cent increase in returns but the last 6 months have increased the returns to about 60 per cent.

The company Vikas Lifecare informed about the development in an exchange communication citing, “In furtherance to our earlier intimations dated May 25, 2022. And June 2, 2022, with respect to the aforesaid issue. Which was opened on May 25, 2022, and closed on June 2, 2022. We are pleased to inform you that the Fund Raising Committee of the Board of Directors. Of the Company (the “Committee”), at its meeting held today i.e. June 2, 2022. (Which commenced at 8:30 P.M. And concluded at 9:00 P.M.). Has inter alia approved the issuance. And allotment of 12,50,00,000 equity shares to qualified institutional buyers. In present tranche at the issue price of ₹4.00 per equity share (including a premium of ₹3.00 per Equity Share). Aggregating to ₹50,00,00,000 (Rupees Fifty Crore only).”

The increase in the stock price predictions of Vikas lifecare and its growth was also confirmed by Anuj Gupta. Who is the Founder of the IIFL Securities has confirmed that the stock has breached its consolidation zone. As well as has been able to sustain at this level even with the market. However, not up to the mark and. Therefore confirms that the stock may give a sharp upside from short to medium term.

China is currently in its cheapest state as compared with India: HSBC

Cheryll Jain — Tue, 26 Oct 2021 12:54:22 +0000

Analysts at Europe’s biggest bank HSBC stated that China has never been this cheap in comparison to India. HSBC is one of the few investment firms that have optimistic expectations regarding the Chinese market, asserting that the worst of the regulatory storm in Beijing has passed and the country is now on a road to recovery.

Keeping in line with its stance, HSBC on Tuesday, October 26 upgraded its weightage of the Chinese equities from ‘neutral’ to ‘overweight.’ Few other investment firms such as UBS, Nomura and Jefferies have also expressed their bullish expectations for Chinese equities, stating that the market crunch in Beijing is easing.

While commenting on the attractive valuation that the Chinese market currently offers, HSBC stated that China is not that expensive on a price-to-earnings (P/E) basis. It is trading at a 12 month forward P/E of 12.9 times, a decline from the beginning of the year when it was trading 17 times high.

Meanwhile, FTSE India is now trading at a premium of 95 percent to China, a feat HSBC strategist led by Herald van der Linde has termed as a record high. This prompted the HSBC analysts to state that “China has never been this cheap versus India.”

Comparing the benchmark indices of the two countries, China’s benchmark SSE Composite index saw an increase of only 3.6 percent this year. Compared to this, India’s benchmark Nifty 50 index grew 30 percent.

Moreover, an analysis done by investment firm Nomura revealed that the 12-month forward P/E and price-to-book (P/B) of only 40 percent of Chinese stocks on the MSCI indices are currently above the level of December 2019. However, the percentage for India was reported to be double for India, with 80 percent of stocks currently above December 2019 levels.

This year MSCI’s China index has fallen close to 12 percent compared to a 15 percent rise in MSCI’s world stocks index. The reason for beaten share prices is spread across the crackdowns affecting the technology sector’s performance to property borrowing.

However, HSBC remains hopeful, stating that “investors are too bearish about China stocks.” It also assured that even blue-chip stocks in the country are now trading at attractive valuations despite the increasing value of the USD and slow growth pace in the country.

“As growth is slowing, we expect Beijing to introduce more targeted easing measures in the coming months,” said the HSBC analysts.