CITI’s outlook on India’s Cement and Metals & Mining sectors highlights optimism in demand but cautions on stock selection due to increased supply. UltraTech is the favored pick, with Dalmia and Ambuja also showing positive interest.
In the Metals sector, investors are not anticipating significant China stimulus. Steel views range from bearish to neutral, with a preference for iron ore, especially with NMDC. Divergent opinions exist on Coal India.
Moving to Utilities, UBS recommends a BUY on NTPC with a target price of Rs 330, citing its leading position, fundraising potential, and equal participation in bidding.
Conversely, they suggest selling Power Grid with a target price of Rs 205 due to slower transmission capex progress and stiff private sector competition.
Kotak Institutional Equity initiates a Buy on Eureka Forbes with a target price of Rs 650. The company is positioned to capitalize on India’s growing water purifier market, fueled by high demand, low penetration rates, and renewed management focus. Expecting robust margins, ROCE, and a 34% CAGR in pre-ESOP EBITDA from FY2023-26. While valuations aren’t low, strong FCF and growth prospects provide support.
In the Aviation sector, MOSL adopts a neutral stance on Interglobe Aviation, setting a target price of Rs 2800. Despite international expansion prospects, the company faces near-term challenges from P&W engine issues and rising domestic competition. Demand remains robust but not yet peaked.
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