Brokerage Recommendations and Targets Overview: Tata Power, Apollo Hospitals, Hero Motocorp, PB Fintech, ONGC, BIOCON, LIC, United Breweries, Emami, Divi’s Lab, Bandhan Bank

CLSA on Tata Power
• Target: 249
• Recommendation: Sell
  – U.S. $5.6 billion growth premium already baked in
  – Stock seen ahead of fundamentals on retail frenzy
  – Key positives: Odisha Discoms and pump storage
  – Key risk: Weak coal prices impacting EPS

Citi Research on Tata Power
• Sell Rating
• Target: 295
• Earlier Target: 253
  – Project wins in transmission and renewables
  – Solar EPC business gains traction
  – Valuations considered expensive
  – Renewables generation capacity at 4261MW

Nuvama on Apollo Hospitals
• Target: 7,500
• Recommendation: Buy
  – Q3 revenue/EBITDA in line with estimates
  – Strong growth driven by hospitals and offline pharmacy
  – Bed expansion plan expected to add momentum from FY25 onwards
  – Hospitals’ revenue/EBITDA CAGR projected at 14%/17% over FY23-26

Citi Research on Apollo Hospitals
• Target: 7,670
  – Q3 results largely in line with expectations
  – EBITDA margins impacted by seasonality, cyclone impact, and investments
  – Management maintains 200bps margin expansion guidance
  – Hospital revenue growth expected to accelerate in the coming years

Nuvama on Hero Motocorp
• Target: 5,600
• Earlier Target: 5,000
• Recommendation: Buy
  – EBITDA & PAT surge in line with estimates
  – Geared up to benefit from 2W industry upcycle and new products
  – Forecast revenue/earnings CAGR of 10%/23% over FY23-26E

Jefferies on Hero Motocorp
• Target: 5,650
• Earlier Target: 5,325
• Recommendation: Buy
  – PAT and EBITDA growth 5-7% above expectations
  – 2W industry poised for strong cyclical recovery
  – Expect success in premium bikes and EVs to enhance growth outlook

Nomura on Hero Motocorp
• Target: 5,305
• Recommendation: Neutral
  – Revenue and EBITDA in line with estimates
  – Xtreme 125 R expected to address a key gap in 125cc segment
  – EVs and Harley noted as key monitorables

Jefferies on PB Fintech
• Target: 1,150
• Recommendation: Buy
  – Expect 30% CAGR in premiums over FY25-27E
  – Expect revenue moderation to 22% CAGR over FY24-27E
  – Expect 5x jump in EBITDA over FY23-27E
  – Key risks: Regulations and strong competition from Jio

Citi Research on Oil And Natural Gas Corp
• Target: 285
• Recommendation: Buy
  – Ebitda 5% below estimate on softer oil & gas production trends
  – Benefits of KG production ramp-up expected in Q4
  – Positive view on high earnings visibility, attractive dividend yield, fair valuations

• Maintain Buy; Cut target price to Rs 310 from Rs 325
• Wading through the one-offs in Q3
• BBL – Traction in existing portfolio but need margins
• Believe effort to de-leverage will be another key trigger for the stock

• Upgrade to Overweight from Neutral; Hike target price to Rs 1340 from Rs 690
• Upgrade following strong Q3 NBV growth
• Growing market interest on the relative valuation merit of PSU over Be private players
• Relatively minor business implications related to potential surrender value increase

Citi Research on United Breweries
• Target: 1,600
• Earlier Target: 1,500
• Recommendation: Sell
  – Cuts FY24E earnings estimates by 8%
  – Lower-than-expected pace of recovery
  – Risks from upcoming elections and increased taxes
  – Profitability could be volatile

Citi Research on Emami
• Target: 600
• Earlier Target: 620
• Recommendation: Buy
  – Self-help initiatives expected to drive growth
  – EBITDA margin expansion anticipated due to input cost moderation
  – Strong growth with estimated 14% EPS CAGR over FY23-26E
  – Cuts FY24-26E earnings estimates by 5-7%

Nuvama on Divi’s Lab
• Target: 3,200
• Earlier Target: 3,070
• Recommendation: Reduce
  – Revenue disappoints; no meaningful margin recovery
  – Pressure in generics & higher opex led to EBITDA margin miss
  – Generics pricing pressure & logistics disruption to weigh on profits
  – Kakinada expansion expected to fuel future growth, but uncertainty around it

• Maintain Neutral with target price of Rs 225
• Asset quality continues to disappoint
• PAT miss due to lower other income and higher credit costs
• What we didn’t like – EEB stress pool continues to increase

• Maintain Sell with target price of Rs 3025
• Weakness in generic APIs continues to weigh on overall print
• Some CSM traction after a lengthy lean patch
• Bake in ample optimism in FY25/26 estimates; valuations stay rich

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