Brokerage Radar: MGL, IEX, Kalyan Jewellers, and Chola Investment see target price upgrades

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Mahanagar Gas, Tata Steel, Ola Electric and more.

Morgan Stanley On PNB Housing Finance
Overweight Call, Target Raised To `1,500/Sh From `1,025/Sh
After Balancesheet Repair & Franchise Rebuilding, Assess That Co Can Deliver Loan Growth
See Re-rating Up To 2.5x FY27 P/B Over 12-18 Months As Loan Growth, RoA & RoE Expand
Following A Sharp Rally, Profit Taking, Stock Supply & Rate Cuts Could Be Headwinds
But See Profit Taking, Stock Supply & Rate Cuts As Transient
Focus More On Structural Re-rating

Jefferies On Mahanagar Gas
Buy Call, Target Raised To `2,120/Sh
Volume Growth Outlook Is Improving On Accelerating RO Additions & Healthy I/C Vol Growth
Falling APM Gas Allocation Is A Structural Headwind For CGDs
Co’s Margin Defense Is Stronger Compared To Peers On Lower Reliance On Expensive Spot LNG
Raise Volume Growth Estimate For FY25; Preferred CGD Pick

Jefferies On Cholamandalam Investment
Buy Call, Target Raised To `1,800/Sh
See Loan Growth Holding Up At 27% In FY25 Despite Softer Trends In Select Auto Segments
See Multiple Tailwinds To NIMs
With 43% Of Borrowings Linked To T-Bills, Gains From Easing Rates Should Be More Upfront Vs Peers
As Operational Leverage Unfolds, New Biz RoA Can Rise 100 bps Lifting Group RoA By 22 bps
EPS Should Grow At 29% CAGR In FY24-27

HSBC On Kalyan Jewellers
Buy Call, Target Raised To `810/Sh From `600/Sh
The Stock Has Risen 8x In Past 2 Yrs & Think It Is Still Midway Into Its Value Creation Journey
Capital Light Expansion Continues At Pace
Continued Exponential Growth Will Likely Prevent Any Multiple De-rating
See Several Long-range Catalysts & Titan’s Journey As A Useful Guide

HSBC On Ola Electric
Buy Call, Target `140/Sh
Recent Market Share Loss Is Worrying To Us
Recent Market Share Loss Could Be Due To The Ramp-Up Of Low Cost Variants From Competition
If Current Mkt Share Trend Sustains, It Would Mean 15-20% Downside Risk To Vol Est For FY25/26

MS On Bharat Electronics
Overweight Call, Target `364/Sh
Co Has Secured An Order Worth `850 Cr From Cochin Shipyard
BEL Has Also Secured Orders Worth `300 Cr For Navigational Complex Systems
Total Order Inflows For BEL In FY25 YTD Stand At `7,070 Cr (28% Of FY25 Guidance)

Morgan Stanley On Tata Steel
Underweight Call, Target `135/Sh
Believe Signing Of £500 m Grant Funding Agreement With UK Govt Is A Positive Development
There Is Limited Clarity On Renewed Discussions With The UK Government
Await Clarity On Whether There Is Any Additional Financial Support For Affected Employees
No Additional Project Cost Should Be Viewed As Incrementally Positive

Antique On Indian Energy Exchange
Buy Call, Target Raised To `262/Sh From `219/Sh
Co’s Double-Digit Volume Increase Has Continued In August’24 And YTD
Volume Growth Is Supported By Softness In Exchange Prices With DAM Market Price
Raised EPS By 5%/ 6%/ 7% For FY25/26/27 & Multiples To 45x From 40x
Coupling Risk Could Fade In Time To Come Given Practical Difficulties In Its Implementation
No Major Benefits Seen So Far
Before Coupling Risks Emerged, IEX's Peak PER Valuation Was +50x

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