Brokerage Radar: Analysts show confidence in Gujarat Gas, Morgan Stanley assigns 'overweight' to RIL

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Gujarat Gas, RIL, cement stocks and more.

Gujarat Gas

Antique On Guj Gas
Buy Call, Target Raised To `726/Sh From `690/Sh
Believe Merger Of GSPL & GSPL Into Guj Gas Is Value Accretive
Merger Will Enable Co To Make Quick Use Of The `72,000 Cr Carry Forward Losses In GSPC
Trading Margin Charged By GSPC From Co Will Now Be Valued At Higher Multiple Of CGD Biz
There Is A Higher Intrinsic Value Of Both GSPC & GSPL's Biz (As Per Est) Than Being Assigned
Some Small Synergy Benefits Are Also Expected From Cost Savings & Lower Indirect Taxes

Equirus On Guj Gas
Upgrade To Add, Target `667/Sh
Merger, Demerger Plan Involving GSPC & GSPL Well Thought
Co Will Benefit From Its Position As 2nd Largest Gas Trading Company In India
Benefit Will Be From Rising Gas Consumption, Presence Across Value Chain
Its CGD/Trading Segment Will Benefit From Potential Entry Of Gas Into GST
Merger Is EPS Accretive With FY25E/26 Proforma EPS At `32/36 Due To Carried Losses
Proforma EPS Will Normalise To `29 In FY27

Jefferies On Guj Gas
Underperform Call, Target `450/Sh
Integration Of GSPC's Gas Trading Biz Will Improve Co’s Margin Profile
Earnings Volatility Will Rise, Implying A Lower Valuation Multiple
Once Scheme Takes Effect, Fair Value For Gujarat Gas Is `513 (15% Downside)

UBS On Axis Bank
Neutral Call, Target `1,250/Sh
Sectoral Headwinds And Weak Q1 Has Led To The Recent Underperformance
Structural Changes To Protect Metrics, However Weakness Likely In Near-term
Re-rating Requires Stable Credit Quality And Growth
Valuations Discount To Peers Has Increased And Appear Reasonable Currently
Due To Sectoral Headwinds, A Sharp Re-rating Is Less Likely In Near-term

Morgan Stanley On Reliance Industries
Overweight Call, Target `3,416/Sh
CMD Laid Out A Clear Path To Monetisation Across Verticals
Focus Will Be Keeping Balance Sheet Gearing Conservative
New Energy EBIDTA Targets, New Chemicals Invst & AI Datacenter Rollout Positive Surprises

Nomura On Torrent Pharma
Neutral Call, Target `3,018/Sh
Both Indrad & Dahej Now Cleared By US FDA With VAI Classification
Co Now Expects 5-10 New Product Approvals In FY25 And More In FY26
Have Factored Recovery In US Revenues For Torrent Pharma Into Estimates
Factor In $133 m/$153 m/$184 m In Sales For FY25/26/27 Vs Current Annualised Run-rate

Macquarie on Cement
Outperform Call On Dalmia, Target `2,176/Sh
Neutral Call On UltraTech, Shree Cement, Ambuja Cem, ACC & Ramco
Healthy Demand And Cost Moderation Offset By Muted Cement Prices
Expect Q2 And Q3 Earnings To Remain Subdued
Sector Consolidation Bodes Well For Medium-term Margins
Suggest Waiting For Better Entry Points On Better Earnings Visibility/Valuation

Citi On UltraTech Cement
Buy, Target `13,000/Sh
Current Downturn In Demand Was Expected Owing To Elections Followed By Monsoons
More Hikes Are Needed As Spot Prices Remain Below Q1 Average
Industry Consolidation Should Continue With Inorganic Opportunities

InCred On Bajaj Finance
Buy Call, Target `9,000/Sh
Prefer Bajaj Fin Amid Superior Growth, Conservative Underwriting & Top Notch Return Ratios
Believe Asset Quality Concerns Over Rural Distress For Co Are Overdone
Expect A Positive Surprise With A Better-than-expected Revival In Rural India
Listing Of Housing Arm & Comfortable Valuation, Have Added Co To High-Conviction List

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