Brokerage Radar: Price targets raised for Infosys; Dalmia Bharat, Havells see neutral calls

Stock Market Trend

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Infosys, Dalmia Bharat, Havells and L&T Technology Services.

Infosys

Nomura On Infosys
Buy Call, Target Raised To Rs 1,950/Sh
Q1FY25 Was An All-round Beat
Surprise Revenue Guidance Driven By Strong Start, Deal Wins, & Acquisition Integration
Project Maximus’ Impact On Margin Continues To Play Out
Raise Our FY25-26 EPS By Nearly 2-3 percent, Reiterate As Top Pick

Jefferies On Infosys
Buy Call, Target Raised To  Rs 2,040/Sh
Q1 Beat Estimates, Driven By Strong Revenue Growth Of 3.6 percent QoQ
Co Has Raised Its FY25 Growth Guidance Which Seems Conservative In Context Of Strong Deal Wins
Initial Signs Of Recovery In BFSI, Strong Deal Wins Suggest The Worst Is Behind
All-Round Improvement In Operating Performance Suggest The Worst Is Behind
Raise Estimates By 3-4 percent & Expect Co To Deliver 10 percent EPS CAGR Over FY24-27

Bernstein On Infosys
Outperform Call, Target Raised To Rs  2,100/Sh
Delivered Its Strongest Beat In 10 Quarters In Q1 Across Revenue, Margin & EPS
FY 25 Revenue Guidance Was Raised To 3 percent To 4 percent YoY CC (From 1 percent To 3 percent)
Deal Momentum Was Strong At $4.1 Bn TCV With Net New Of 57
See Beginning Of An Upcycle Trend As Growth Recovers, BFSI Inflects & AI Deals Scale Up

Dalmia Bharat

MS On Dalmia Bharat
Equal-Weight Call, Target Rs 1,900/Sh
Small EBITDA Beat In Q1 While Key Positive Was Better Realisations
Opex/t Was Broadly In-line With Estimate
Weak Volumes, However, Were A Key Negative

Nomura On Dalmia Bharat
Reduce Call, Target Rs 1,700/Sh
Stable Realisations Drive Significant EBITDA/t Beat
EBITDA/t Of Rs 904/t Came In 33 percent Above Estimates
Expansion Projects On Track
Co Poised To Achieve 50 mt Cement Capacity By FY26 Through Organic Route
Stock Currently Trades At 11.5x 1-Yr Fwd EV/EBITDA

Havells

Nomura On Havells
Neutral Call, Target Rs 1,900/Sh
Q1 Margin Miss On Weaker Mix
Maintain 20 percent/17 percent Revenue Growth For FY25/26 (18 percent/14 percent Ex-Lloyd)
Price Hikes & Stable Commodity Should Support Margin
Stock Trades At 54x FY26 EPS, Which Believe Factors In Expected Earnings Recovery

Jefferies On Havells
Hold Call, Target Rs 1,880/Sh
Q1 Was In-line With Estimates
Strong Sale (+20 percent YoY) Was Driven By Good Offtake In Summer Products
Strong Sale Was Driven B2B Offtake, Albeit With Interim Election Impact
Lloyd Posted EBIT Margin At +3.5 percent In Q1 (+2.8 percent In Q4FY24)
Strong Capex Housing Cycles - C&W, Switchgears & Lighting Sales Declined By 11-15 percent QoQ
Cut FY25-27 EPS By 1-2 percent

MS On L&T Tech
Underweight Call, Target Rs 4,300/Sh
Despite The Miss, Co Has Strong Deal Pipeline & Maintained Revenue & Margin Guidance For FY25
Ask Rate To Meet Rev Guidance Is High, & Continued Estimate Cuts Could Limit Positive Triggers

GS On Tata Tech
Sell Call, Target Cut To Rs 950/Sh
Q1FY25 Was A Miss With Revenue/EBITDA -2.5 percent/-8 percent QoQ & Were -5 percent/-9 percent Below Consensus
Softness Was Due To Phasing Of Customer Business In The Smaller Technology Solutions Segment
Softness Was Due To Vinfast Customer Related QoQ Moderation In Rev In Core Svcs (Auto) Biz
Going Forward, Mgmt Expects A Return To Sequential Growth In The Business In Q2-Q3-Q4 Of FY25

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