Brokerage Radar: Analysts bullish on Torrent Pharma; CLSA assigns 'outperform' rating to Power Grid, Sun TV

Stock Market Trend

Check the brokerage calls and comments on the stocks in action. Today we cover Torrent Pharma, Divi's Lab, Ashok Leyland among others following their Q4 results.

Torrent Pharma

Jefferies On Torrent Pharma
Buy Call, Target `3,070/Sh
Q4 Revenue/EBITDA Were In-line
India's Revenue Grew 10% YoY While Brazil/Germany Witnessed Further Recovery
Sustained Margin Improvement In India & Intl Ops Should Drive 14% EBITDA CAGR Over FY24-26
Co’s Consistent Strong Operating Performance Should Allow Further Re-rating

Nomura On Torrent Pharma
Buy Call, Target `2,975/Sh
Q4 Below Est
Management Commentary Is Positive, As It Expects TRP To Grow Ahead Of The Broader Mkt In India
Management Expects By TRP To Grow Ahead Of The Broader Mkt In India 200-300 bps
Co Expects A Recovery Of US Revenue On The Back Of New Launches
Co Expects Mid-teens Growth In Brazil Led By Price Increases & New Product Launches
CO Expects Lowering Of Effective Tax Rate To 25% From 30% Currently In FY26

Jefferies On Divis Lab
Hold Call, Target Raised To `4,050/Sh
Q4 Ahead Of Estimates As Custom Synthesis Sales Surged By 47% YoY
Q4 EBITDA Margin Rises To A Multi-quarter High In Consequence
Custom Synthesis Benefited From Q4 Seasonality And Two Commercial Contracts
Co Looks Like It Is Set To Spring Back To Its Growth Path
See Co’s Growth Patch Factored Into Stock, Which Trades At 41x FY26 PE Valuation

MS On ManappuramFin
Overweight Call, Target `230/Sh
Q4 PBT Missed Estimate By 6%, Mainly From Higher Credit Costs In MFI Subsidiary
Standalone NIM Missed Estimate Owing To Lower Yields
Gold Loan Yields Were Stable QoQ
Management Reiterated Guidance Of 20% AUM Growth
Management Reiterated Guidance Of 20% RoE Despite Some NIM Compression
Co Expects Gold Loan Growth To Improve In FY25 Over FY24
Co Is Seeing A Gain In Its Gold Loans Business
Gain Expected In Gold Loans Biz As Smaller NBFCs Cope With `20,000 Cash Disbursements Limit
Co Has Taken Corrective Action In Problematic Geographies
Credit Costs At Asirvad Microfinance Are Likely To Remain Elevated In Near-term

Jefferies On Ashok Leyland
Hold Call, Target Raised To `205/Sh
Q4 EBITDA/PAT Grew 25-36% YoY & 9-14% Above Estimate
India's Truck Ind Growth Has Moderated From 45% CAGR Over FY21-23 To Flat In FY24
Expect A Capex-led Economic Cycle To Fuel Demand Growth Ahead
Like Co’s Improving Margin Trajectory
Believe Stock Will Be Rangebound Until Demand Visibility Improves
Stock Is Already At 5.2x FY25 PB On Consensus Vs Last Cycle Peak Of 5.8x

Jefferies On GMR Airports
Initiate Buy, Target `100/Sh
Co Is Evolving From Utility To A Retail Consumption Play
Co Is Slated To Benefit From Strong Air Traffic Growth Outlook
Co Is Slated To Benefit From Travel Retail Opportunity, Upward Reset In Aero Tariffs
Simplification Of Corp Structure, Improvement In Leverage Ratios Will Support Re-rating
Expect Co’s EBITDA CAGR Of 32% Over FY24-FY27

MS On NTPC
Overweight Call, Target `390/Sh
Co’s Parent Earnings Missed Estimates Due To Fixed Cost Under recoveries
Consolidated PAT Was A Miss Driven By Lower Profit Contributions From Subsidiaries
Co Has A Strong RE Portfolio Of 23.2 GW; RE IPO Possible By Oct/Nov-24

CLSA On Sun TV
Outperform Call, Target `720/Sh
IPL Revenue Up 130% YoY But Core Business Ad Revenue Declines 3% YoY
Despite IPL Boost, Shave CL25/FY26 Forecast By 1-3%
Expect A 10% Earnings CAGR In CL24-27

CLSA On Power Grid
Outperform Call, Target `345/Sh
FY24- A Year Of Market Share Gains
Capex Beat Estimates, Capitalisation Missed But Good FY25 Guidance
PAT Up 4% YoY Led By Dividend From Subsidiaries; Dividend Grew Despite Capex Beat

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.