Macquarie On Trent
Initiate Outperform Call, Target Price Rs7,000/sh
Showstopper! – Leading fashion retailer
Trent India’s leading fashion retailer in the value to mid-premium space
Trent Leads Asian Peers On Growth, Return Profile & Inventory Turns
See This Sustaining As Integrated Back-end Allows Quicker Fashion-forward Style Drops & Part New Stores
Through Franchisee Route Aids Return Profile
Asia’s Best Retailing Metrics & A Play On India’s Rising Discretionary Spend In Fashion
DAM Cap on Aadhar Hsg
Initiate Buy – TP Rs 525
Best geographic granularity among affordable peers & more holistic mix of sourcing channels are 2 key areas where Aadhar scores better vs key peers
Stock trades at 2x on FY27e book & 13x on FY27e earnings
Growth target of 20-22% (not very high) would ensure calibrated use of its different sourcing channels & thereby ensure control over quality
Expect RoEs to be 16-17% over FY25-FY27 & could peak at 18% before next raise kicks-in
HSBC on Adani Ports
Buy Call, Target Price Rs1,600/sh
Adani Ports Reiterated Its EBITDA Guidance Of Rs18,800-18,900 Cr For FY25
Adani Ports Emphasised Its Ambition To Become An Integrated End-to-end Logistics Svc Provider
View Adani Ports As A Long-term Proxy For India’s Trade & Infrastructure Growth
Jefferies On JK Cement
Buy Call, Target Price Rs5,520/sh
Hosted JK Cement For Meetings In SG
Mgmt Highlighted Improving Outlook On Demand, Also Supporting Pricing
It Should Drive Healthy FY25 Exit On Profitability For Co/Industry
Mgmt Reiterated Its Plans On Steady Growth In Capacity From 24 MTPA To 30 MTPA By FY26 End & 50 MTPA By 2030
Co Is Amid Executing Cost Saving Projects Across Power/Fuel/ Freight Which Would Translate To Rs150/t Savings Over FY24-FY27
JK Cement Remains Top Mid Cap Pick
CLSA on Samvardhana Motherson
Outperfrom Call, Target Price Rs167/sh
Potential Doubler In Three Years
Steady Execution In Adverse Mkt & Subdued Valuation, Setting Up Base
Building In 11% Revenue CAGR In FY25-29 Vs 24% CAGR In FY22-24
Improving ROCE & Leaner Balance Sheet+ Better Market Outlook To Drive Re-rating
CLSA On L&T
Outperform Call, Target Price Rs4,151/sh
L&T Won Its Biggest Ever EPC Contract
$4 bn+ Offshore Gas Project From QatarEnergy LNG.
After Winning Large Indian Contracts In Q3, Driven By Modi 3.0, This Order Adds 6.6% To L&T’s Backlog
Should Drive A Beat Of It Is FY25
Order Inflow Guidance Of +10% YoY On A Lofty Base Of +39% YoY In FY24
Contract Clearly Takes L&T Into The Big Leagues Of Global EPC Handling Multi-billion $ Contracts.
Catalysts Include A Rise In Core E&C Inflow & Margin, As Well As Actions To Improve Return Ratios
BNP Paribas on L&T
Maintains Outperform, Cuts target price to ₹4,435 from ₹4,600.
Retains L&T as a top pick, with concerns over oil-linked slowdown in GCC tendering seen as overblown.
A deep dive suggests CY25 to be stronger than CY24, starting with a QatarEnergy order exceeding USD 4.0bn.
Saudi may open real estate for non-GCC residents, boosting private capex.
Despite oil price concerns, GCC capex in CY24 is expected to hit a record USD 270bn+.
Core FY26/27 EBITDA estimates remain largely intact, with a core P/E of 19x FY27E EPS.
MS on Wipro
Underweight Call, Tgt Price Rs265/sh
Announces A $650mn Strategic Deal
Should Support Expectations Of A Pick-up In Revenue Growth In FY26, Especially In A Volatile Macroenvironment
Expect This To Be Positive For Sentiment & Support Stock Price In Near-term
Nomura On Ashok Leyland
Buy Call, Target Price Rs250/sh
Switch India To Drive Growth, UK To Shut Down
With No Clear Visibility On The EV Bus Mkt In The UK, Cessation Of Ops Appears To Be A Step In The Right Direction
Management Mentioned That Current Loss Is GBP 2mn/month.
Besides This, Further Investments Will Not Be Required
Est. Total Cost Of Cessation Could Be Rs1,100-1,200 Cr
MS on Ashok Leyland
OW, TP Rs 284
Co ‘s move to close UK EV manufacturing & focus on its Indian supply base is a positive.
It reduces cash burn & will also bring economies of scale to India.
JPMorgan on HAL
Overweight Call, Target Price Rs4,958/sh
GE Aerospace Has Started Delivery Of F404-IN20 Engines For LCA Mk1A Fighter Aircrafts To HAL
Delayed Delivery Of Engines Has Been An Overhang On HAL
With The Delivery Now Starting, Overhang Has Been Lifted.
HAL Continues To Have A Large Opportunity Set & Enjoys Almost A Monopoly Status
Motilal Oswal On Five Star Finance
Buy Call, Target Price Rs900/sh
Near-term stabilisation to result in healthy growth ahead
Co may report near-term compression in NIM following a 200bp reduction in incremental lending yields since Nov’24.
4QFY25 will be first quarter in which full impact of lower yields will be visible on NIMs.
A combination of lower yields and increasing leverage on b/s will lead to some NIM moderation, which could be offset slightly by a gradual dip in its cost of borrowings in a declining rate environment
Project NIMs of 18.4%/17.1% in FY26/FY27 vs. 19.5% in FY25E.
Motilal Oswal On HDFC AMC
Buy Call, Target Price Rs14,800/sh
Equity AUM Is Projected To Grow By 55%, 12% & 18% In FY25, FY26 & FY27, Respectively
FY26 Is Anticipated To Start On A Weaker Note In Terms Of AUM Growth
Despite Adjustments In Commission Structures, We
Factor In A 1 bps Decline In Overall Yields For FY26 & FY27
Consequently, Estimate An Earnings CAGR Of 14% Over FY25-27
Bernstein on DMART
Maintains ‘Outperform’ With Target Price At ₹5,800
Co Marching Towards 1,000 Stores
Presence In 750+ Cities Needed To Capture Serviceable Addressable Market
Expects 60 New Stores For FY26 & 75 For FY27
Convinced That Co Will Get To 1,000 Stores By FY35
CITI on HDFC Bank
Maintains ‘Buy’ With Target Price Of ₹2,200
Opens 90-Day Positive Catalyst Watch
Expects Advances Growth To Have Bottomed Out In Q3
See Lower NIM Pressure Through The Cycle
Expect Over 7% Growth In Q4 Deposits (QoQ)
Processes/infra Readiness, Digital Capabilities To Aid Targeted System Average Growth By Q4 FY26
Expanded Distribution, Augmented Customer Base To Aid Targeted System Average Growth By Q4 FY26
With Levers In Place, NIMs Should Trend Relatively Better And Remain Range Bound
No Unusual Stress In Any Segments And Credit Cost Expected To Be Contained
JPMorgan on Tata Steel
Maintain Overweight with target price of Rs 180
Broad investor view on the stock is neutral-to-slightly positive after the sharp rally
Several investors agree that European tailwinds could be tangible
