BoFA Sec on Autos<\/p>\n
Drivers in place for auto upcycle: Cost of ownership, Credit, Crude. See vol growth at 8% CAGR over F25-28E, 0.8x nominal GDP<\/p>\n
2W: Upgrader market given high HH penetration, rising financing & aspiration. Cycle & rural to benefit Eicher & TVS. Buy EIM<\/p>\n
PV: Growth shift from premiumization to penetration. Buy: MSIL proxy to cycle & SUV launches, MM\u2019s prdt strength class apart<\/p>\n
Raise POs to factor improved growth outlook. Preferred picks in sector are Maruti, Eicher and Mahindra<\/p>\n
Eicher \u2013 Rating Buy, TP up from \u20b96,300 to \u20b97,500<\/p>\n
MSIL \u2013 Rating Buy, TP up from \u20b914,000 to \u20b917,000<\/p>\n
M&M \u2013 Rating Buy, TP up from \u20b93,750 to \u20b94,000<\/p>\n
Bajaj Auto \u2013 Rating Neutral, TP up from \u20b98,850 to \u20b99,600<\/p>\n
Hero Moto \u2013 Rating Neutral, TP up from \u20b94,800 to \u20b95,650<\/p>\n
TVS Motors \u2013 Rating Neutral, TP up from \u20b92,900 to \u20b93,725<\/p>\n
Hyundai \u2013 Rating Neutral, TP up from \u20b92,200 to \u20b92,700<\/p>\n
Ola \u2013 Rating Underperform, TP up from \u20b945 to \u20b948<\/p>\n
GS on Ola Electric<\/p>\n
Buy, TP Rs 72<\/p>\n
Believes that its Gen 3 scooter platform and improving service infrastructure should support its steady state market share goal of 30%-35% in India\u2019s still young Electric 2W mkt<\/p>\n
Co is committed to in-house cell production, but is now more focused on 5 GWh rather than 20 GWh of capacity.<\/p>\n
EBITDA breakeven on the Auto business is expected during the course of FY26.<\/p>\n
MS on Steel<\/p>\n
Turn constructive on steel spreads expansion<\/p>\n
Expect domestic steel prices to expand as demand improves<\/p>\n
China anti-involution theme is also gaining traction<\/p>\n
Global macro factors also turning favorable.<\/p>\n
Raise steel prices est. by 3% each for F2027\/28<\/p>\n
Expect select steel stocks to outperform overall India Materials space over next few months<\/p>\n
Upgrade JSW to OW, TP Raised to Rs 1300<\/p>\n
Upgrade Tata Steel to OW, TP raised to Rs 200<\/p>\n
Upgrade SAIL to EW, TP raised to Rs 140<\/p>\n
Maintain EW on Jindal Steel, TP raised to Rs 1150<\/p>\n
Nomura on Ceat<\/p>\n
Buy, TP Rs 4037<\/p>\n
Camso benefits to be visible by FY27-28F<\/p>\n
Focus on integration challenges in near term; long term potential intact<\/p>\n
Following GST cut, Ceat remains a potential key beneficiary of OE demand uptick in PV\/2W (44% of revenue) & high replacement exposure (48% of revenue) driving margin tailwinds<\/p>\n
Nuvama on Ceat<\/p>\n
Upgrade to Buy, TP Rs 3900<\/p>\n
Attended conference call on completion of the Camso buyout. Highlights:<\/p>\n
Revenue run rate is USD130\u2013150mn, and utilisation 50%.<\/p>\n
EBITDA margin is in low teens, but can increase to 20% over medium term.<\/p>\n
Of the acquisition amount of USD225mn, USD138mn has been paid, USD43mn shall be paid in FY27E and the remaining USD44mn would be paid in FY29E<\/p>\n
CITI on Vedanta<\/p>\n
Buy, TP Rs 500<\/p>\n
Vedanta has emerged as highest bidder for JPA – total bid of Rs161bn, NPV at Rs125bn – staggered payment plan.<\/p>\n
Assets: real estate, cement, power, fertilizer, hospitality, E&C.<\/p>\n
At this point there are various uncertainties<\/p>\n
Vedanta\u2019s net debt\/EBITDA ex HZL would be 2x as of Mar26.<\/p>\n
Uncertainty around this news could create an overhang on stock<\/p>\n
JPM on Amber Ent<\/p>\n
Neutral, TP Rs 8150<\/p>\n
Announced that its subsidiary ILJIN Electronics will be raising Rs12bn through an issue of equity shares & compulsory convertible preference shares to multiple investors (Chryscapital, Two Infinity Partners, Raptor Investments, Incred).<\/p>\n
Fund raise will be for organic & inorganic opportunities<\/p>\n
Believe funds raised could be used to fund capex on bare PCB – multi-layer PCBs through Ascent Circuits, where it will invest Rs9.9bn, & HDI PCBs through Korea Circuit JV, where it will invest Rs32bn<\/p>\n
CITI On Indus Tower<\/p>\n
Buy, TP Rs 460<\/p>\n
Bharti Airtel has increased its stake by 0.26% through open-market purchases over Aug 25 \u2013 Sep 1<\/p>\n
Amid concerns of Indus deferring payouts, which has led to a sharp correction in stock in last 2 mths, believe stake hike by Bharti sends a +ve signal of confidence<\/p>\n
Nomura on Swiggy<\/p>\n
Initiate Buy, TP Rs 550<\/p>\n
Food Delivery business on steady profitability path & a key cash generator<\/p>\n
Quick commerce \u2014 challenger position remains but profitability likely to improve<\/p>\n
Well funded for scaling QC further, risk of dilution is low<\/p>\n
Macro slowdown could also pose a risk to growth assumptions for online FD business<\/p>\n
Nomura on Eternal<\/p>\n
Buy, TP Rs 370<\/p>\n
Food Delivery on steady growth path and improving profitability<\/p>\n
Quick Com \u2014 CM bottoming out; inventory-led model to aid margin expansion<\/p>\n
Key risk slowdown in FD & competition in QC<\/p>\n
Assign 40x FY28F EV\/EBITDA to FD business & a 1.2x EV\/GOV to QC biz<\/p>\n
Jefferies on Samvardhana Motherson<\/p>\n
Buy, TP Rs 110<\/p>\n
Outlined an ambitious gross revenue target of $108bn by FY30 (5x FY25 gross revenues) with 25-33% expected from non-auto (FY25 4.5%).<\/p>\n
More than the absolute number, what stands out to us is SAMIL\u2019s huge growth appetite and a strategic pivot from autos to a broader manufacturing ambition spanning sectors including electronics & aerospace.<\/p>\n
Like SAMIL\u2019s strong manufacturing capabilities and its expanding addressable market.<\/p>\n
Jefferies on TBO Tek<\/p>\n
Buy, TP Raised to Rs 1800<\/p>\n
Announced acquisition of Classic Vacations, a premium US-based luxury travel wholesaler, for $125M (11x EV\/EBITDA).<\/p>\n
1st material acquisition after Jumbonline (in Europe) in 2023, & in line with roll up strategy of incubating new source markets<\/p>\n
Deal strengthens CO\u2019s presence in premium outbound market, especially in North America (currently 5% of overall GTV)<\/p>\n
Nuvama on Spicejet<\/p>\n
Hold, TP Rs 40<\/p>\n
Posted Q1FY26 EBITDAR of Rs 123m vs Rs 2.8bn in Q1FY25 on lower ASKM (-28%), PLFs (-736bp) and higher CASK (+8%).<\/p>\n
Highlights:<\/p>\n
i) ASKM crashed 28% YoY due to operational fleet reduction<\/p>\n
ii) Q1 yields inched up 2% YoY (IndiGo: -5% YoY).<\/p>\n
iii) Operational fleet expansion likely delayed due to no material change in fleet post Rs 30bn QIP & resulting restructuring of lessors\u2019 dues.<\/p>\n
iv) Read-through from IndiGo management for Q2FY26 indicates a stable revenue environment; SJ\u2019s scheduled flights were flat YoY in Q2.<\/p>\n
v) Revival likely to be gradual post-QIP with turnaround a key monitorable<\/p>\n
Cutting FY26E\/27E EBITDAR by 14% each<\/p>\n
IIFL Cap Upgrades Britannia<\/p>\n
Believe that the market is under-appreciating the GST rate cut benefit to Britannia\u00a0<\/p>\n
Over half of the portfolio in price pointed packs (PPP), the extra volume fill to pass on GST benefit will result in a 6% volume\/sales uplift and nearly 10% EPS benefit factoring in operating leverage benefits.\u00a0<\/p>\n
We expect Britannia to clock ~10%\/~15%\/~18% sales\/Ebitda\/EPS growth for the next 4 quarters, pushing up PE multiples in addition to an EPS upgrade (we upgrade 4%\/6%\/ 6% after factoring in a cut for recent palm oil inflation) and value at 55x Sep 2027 to arrive at a target price of Rs7200, a 18% upside.\u00a0<\/p>\n
We upgrade from ADD to BUY.<\/p>\n
JM Financial on IT Tariff News<\/p>\n
There is no alternative (TINA), Our base case is Services will be spared.\u00a0<\/p>\n
Technical factors aside, no other country has the scale and skill that India brings in IT Services.\u00a0<\/p>\n
Unlike factories for goods, replacing software engineers at this scale in a short span is unfathomable.\u00a0<\/p>\n
Even if there is a potential increase through taxes, IT Services players, if willing, can pass those on to end-clients.<\/p>\n
JM Financial IC on Angel One<\/p>\n
Initiate coverage on Angel One with a BUY rating and target price of INR 2,700<\/p>\n
Valuing the company at 19x FY27e EPS of INR 141<\/p>\n
The company is amongst the largest retail brokers in India, with over 32mn clients, of which 9mn+ are NSE active.<\/p>\n","protected":false},"excerpt":{"rendered":"BoFA Sec on Autos Drivers in place for auto upcycle: Cost of ownership, Credit, Crude. See vol growth…\n","protected":false},"author":3,"featured_media":209369,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[13094,23208,17333,23209,64,23205,23204,21762,135,23212,17324,23206,23203,17321,23202,10748,21763,23201,10747,19469,23207,23213,23214,23210,23211,67,132,68],"class_list":{"0":"post-209368","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-asian-markets","9":"tag-asian-shares","10":"tag-bank-nifty","11":"tag-brokers-call","12":"tag-business","13":"tag-buzzing-stocks","14":"tag-commodity-calls","15":"tag-gold-prices-today","16":"tag-markets","17":"tag-nifty-technical","18":"tag-nifty-today","19":"tag-opening-bell","20":"tag-rupee-trade","21":"tag-sensex-today","22":"tag-share-market-live-updates","23":"tag-share-market-today","24":"tag-silver-prices-today","25":"tag-stock-market-live-updates","26":"tag-stock-market-today","27":"tag-stock-recommendations","28":"tag-stock-to-buy-today","29":"tag-top-gainers-today","30":"tag-top-losers-today","31":"tag-trading-guide-for-today","32":"tag-trending-stocks","33":"tag-united-states","34":"tag-unitedstates","35":"tag-us"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/209368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=209368"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/209368\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/209369"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=209368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=209368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=209368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}