Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Asian Paints, Eicher Motors and Bajaj Auto along with gold financiers.
Asian Paints
Jefferies On Asian Paints
Underperform Call, Target Cut To Rs 2,100/Sh
Co Started FY25 On Weak Footing With Q1 Sharply Below Est On Revenue & Margins
Mgmt Clarified That This Performance Has Nothing To Do With Rise In Competition
Mgmt Clarified Higher Cost Was Due To A Mix Of Higher Raw Material Prices
Higher Cost Was Due To Increase In Staff/Opex To Improve Service Levels
Multi-Quarter Low EBITDA Margin Translated Into A 20% YoY Decline In EBITDA
JPMorgan On Asian Paints
Neutral Call, Target Rs 2,800/Sh
Q1 Earnings Miss On Weak Margin Print & Tepid Revenue Growth
Poor Mix And Subdued Demand Weigh On Revenue
Price Hikes, Rural To Aid Better Growth Q2 Onwards
Lower FY25-27 EPS By 3-5% By Further Lowering Margin Assumptions
Marginal Tweak Down In Revenue Growth
GS On Asian Paints
Neutral Call, Target Rs 2,750/Sh
EBITDA Decline Of 20% YoY In Q1, Demonstrates Increasing Headwinds
Sharp Growth Slowdown, Management Expects A Modest Recovery Ahead
EBITDA Margin Impacted By Increase In Staff Costs And Advertising
Impact Of Increased Competitive Intensity Likely To Create Further Pressure Going Forward
Eicher Motors
Nomura On Eicher Motors
Reduce Call, Target Rs 4,119/Sh
Royal Enfield Guerrilla 450 Launched At A Starting Price Of Rs 2.39 Lk
Segment Above 400cc Has Not Seen Much Increase In Its Share Despite Interesting Products
Believe Reason For No Rise Could Be That Large Section Of Customers Use Bikes For Commuting
These Bikes Are Not Only Expensive, But More Difficult To Ride In Traffic As They Tend To Heat Up
Despite The Launch, Do Not Expect Much Improvement In Overall Growth For Royal Enfield
CLSA On Eicher Motors
Underperform Call, Target Rs 4,157/Sh
Launched Guerrilla 450, Priced Between Rs 2.39 Lk-2.54 Lk In India
Bookings Have Commenced In India, With Test Rides & Retail Sales Scheduled To Begin On Aug 1
Royal Enfield Holds Mkt-leading Position In Premium Motorcycle Segment With 29.5% Market Share
Royal Enfield Dominates >250cc Motorcycle Segment With 88.3% Market Share In FY24
Royal Enfield Is Losing Market Share In The Segment As Competitors Continue To Scale Up
Maintain Underperform Call On Expensive Valuations
Bajaj Auto
Macquarie On Bajaj Auto
Neutral call, Target Rs 9,655/Sh
Q1 PLI Accrual Drives Headline Gross Margin Beat
Multiple Growth Drivers Including CNG Motorcycle
Growth Drivers Include Expansion Of E2W Portfolio With Launch Of Less Than `1 Lk Model
Growth Drivers Include Manufacturing Footprint In LATAM
Ramp Of E3W Volumes & Distribution For EVs & Prem Motorcycle Should Lend Growth Support
UBS On Bajaj Auto
Sell Call, Target Rs 6,250/Sh
PLI Incentives & Spares Aid 20% Margin In Q1
Mix Moderation Ahead, Margin Tailwinds Behind
Believe Market Is Assigning 25x P/E To 3W Business
Market Also Seems To Be Ignoring Muted Response To Triumph Moderating 3W Volumes
Market Also Seems To Be Ignoring Slippage In 2W Mkt Sh Despite Launch Of Multiple Models
Nomura On LTIMindtree
Reduce Call, Target Rs 4,670/Sh
Q1FY25 Saw Modest Beat At Topline, Miss At Margin
Margin Improvement In FY25 Unlikely
Near-term Growth Visibility Driven By Short-cycle Projects From Clients
Margin Recovery To Be Slow, Significant Improvement Needs Sharp Growth Revival
Jefferies On Gold Financiers
Initiate Buy Call On Muthoot Fin, Target Rs 2,200/Sh
Initiate Buy Call On Manappuram Fin, Target Rs 270/Sh
Gold NBFCs Offer Leverage To Higher Gold Prices
Gold NBFCs Should Gain From Stabilising Competition & Diversification
Stabilising Competition & Diversification Should Support Stronger Loan Growth Vs Past 3 Yrs
Loan Growth Of 17-19% EPS CAGR (3-8% FY21-24) & 18%+ RoE Over FY24-27 For Muthoot & Manappuram
Asset Quality Risk In Gold Is Low
RoEs Are Superior Vs Most NBFCs & Valuations Seem Reasonable In This Context
Prefer Muthoot Fin (Gold 82% Of AUM) On Better Gold Price Leverage
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