Brokerage Reports: Mindspace REIT, Prestige, Sobha, DLF, Godrej Prop, Oberoi Realty, Macrotech, Embassy REIT, Sunteck Realty, Nippon AMC, HDFC AMC, KFin Tech, Max Financial, BSE, Tata Motors

HSBC’s Strategy for India:

– FII inflows into Indian equities reached $21 billion by the end of 2023, with expectations for further growth. Target remains optimistic.
– Large caps are poised for growth due to strong FII inflows, offering a favorable risk-reward profile. Target growth expected.
– Financials are highlighted for their growth potential at attractive valuations. Target valuations look promising.
– A risk-on stance may favor sectors like IT in 2024, given their underperformance in 2023. IT sector target remains under observation.
– HSBC favors India over its regional peers, particularly banks, healthcare, and energy. Target set higher for these sectors.

Jefferies’ Real Estate Outlook:

– Mindspace REIT’s rating is upgraded to “Buy” with a target price of Rs 365.
– Prestige is downgraded to “Underperform” but sees an increased target price of Rs 1,000.
– Sobha’s rating shifts to “Hold” with a target price of Rs 1,265.
– DLF is recommended as a “Buy” with a target price of Rs 875.
– Godrej Prop remains a “Buy” with a new target of Rs 2,635.
– Oberoi Realty is suggested as “Hold” with a target of Rs 1,375.
– Macrotech maintains a “Buy” stance with a target price of Rs 1,290.
– Embassy REIT is retained as “Buy” with a target of Rs 394.
– Sunteck Realty remains a “Buy” with a target price of Rs 555.

Emkay on Zee Entertainment:

– Sony India appears set to withdraw from the merger with Zee Entertainment by 20-Jan-24. Zee’s target price may be impacted.
– Potential merger breakdown could affect both Sony and Zee negatively, given their past growth trends. Targets revised downward due to uncertainty.
– A final decision on the merger is expected soon. If canceled, Zee’s stock could see a significant drop.

JPMorgan on Tata Motors:

– JPMorgan maintains an “Overweight” stance on Tata Motors with a target price of Rs 925.
– Sales trends are positive, but North America lags. Targets are set with cautious optimism.
– Q3 forecasts indicate strong profitability across JLR and India businesses, with targets reflecting this optimism.
– Management’s approach to free cash flow and debt reduction will be closely watched, potentially impacting the stock’s target price.

Jefferies’ on Financials Stock

– Nippon AMC: Maintained as a “Buy” with a target price raised to Rs 540 from Rs 440.
– HDFC AMC: Retained as a “Buy” with a target price increased to Rs 3,890 from Rs 3,230.
– KFin Tech: Kept at “Buy” with a target price elevated to Rs 660 from Rs 570.
– Max Financial: Maintained as “Buy” with a target price adjusted to Rs 1,200 from Rs 1,070.
– BSE: Remains a “Buy” with a target price set at Rs 3,000, up from Rs 2,700.

– Life Insurers: Steady growth observed but with concerns over weaker margins. Targets set with caution.
– General Insurers: Positioned well in the market, with target prices indicating positive growth prospects.
– Fintechs: Seen as potential rebound stories, with target prices reflecting optimistic recovery.
– Asset Managers: Benefiting from favorable market conditions, with target prices set at higher levels.
– Exchanges: Capitalizing on market digitization trends, with target prices reflecting growth opportunities.

Morgan Stanley’s Insights on Q4 Earnings:

– Profit growth driven by margin improvements.
– Domestically-focused sectors lead in broad growth.
– Anticipate 60% of Morgan Stanley’s coverage to see margin growth.
– Expect subdued top-line expansion.
– India remains within a positive earnings cycle.
– Preference for financials, consumer discretionary, and industrials; caution towards sectors reliant on external markets.
– Predict 8% revenue growth and 11% net profit growth for Sensex in Q3FY24.
– Nifty projected at 5% revenue growth and 12% net profit growth for the same period.

Citi Research on India’s Mutual Funds Sector:
– December 2023 records equity inflows of Rs 17,000 crore, sustaining growth.
– Anticipate a notable decline in lumpsum net flows compared to the last four months.
– Anticipated rise in NFOs might reduce inflows into current schemes.

Citi Research on Page Industries:
– Target set at 35,400.
– Concerns over near-term revenue and profitability.
– Challenges in athleisure and active wear demand.
– MBO expansion rate decelerating, particularly in kids wear.
– Potential strategy shifts due to recent management alterations.

Citi Research on Bata:
– Target set at 1340.
– Revenue and profitability at risk due to a sluggish discretionary demand environment.
– Slowing expansion of stores and distribution.
– Potential de-rating due to revenue growth lagging peers.

Jefferies on India’s Agribusiness Sector:

– ‘Buy’ recommendation for PI Industries with a target of Rs 4,290.
– SRF downgraded to ‘Underperform’ with a target of Rs 2,140.
– Neutral stance on Navin Fluorine, awaiting new Managing Director’s impact.
– Predicted lag in SRF business recovery despite recent stock performance.
– Growth expected to revert to historical averages by the end of CY24.

HSBC on Nykaa:
– Target price set at 250.
– Nykaa poised to leverage its scale and leadership in the BPC sector.
– Predicted CAGR of 20-30% for the BPC e-commerce market over the next decade.
– Revenue projected to double biennially over the subsequent five years.

Morgan Stanley on India’s Auto, Airlines, and Hospitals:

– Auto sector nearing peak volume growth.
– Top preferences: Tata Motors, Ashok Leyland, Mahindra, Maruti, Bajaj Auto.
– In airlines, Interglobe Aviation (Indigo) stands out due to industry consolidation.
– Indian healthcare sector has untapped potential in infrastructure and medical expenditure.
– Apollo hospitals focusing on capex, growth, and margin enhancement.

Sector-wise Q3 Results Preview:

– Nirmal Bang: Chemicals – Revival potential, but timing uncertain.
– Prabhudas Lilladher: Oil & Gas – Anticipate subdued operating outcomes.
– Prabhudas Lilladher: Travel & Tourism – Modest demand for luggage but optimistic about hotels.
– ICICI Securities: Automobiles – Earnings growth catalysts waning.
– Motilal Oswal: Q3 FY24 – Domestic cyclical sectors expected to boost earnings.
– Prabhudas Lilladher: Banks – Sequential decline in core profitability anticipated.
– ICICI Securities: Metals – Positive for miners, but ferrous segment drags.
– Prabhudas Lilladher: Healthcare – Pharma set for robust Ebitda growth, especially in U.S. markets.