Brokerage Radar: Apollo Hospitals gets a downgrade; Bansal Wire, Emcure Pharma get 'buy' tags

Stock Market Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Reliance Industries, Apollo Hospitals, Zydus Life, Emcure Pharma and Bansal Wires, along with views on sectors such as information technology and oil marketing companies.

Reliance Industries

Jefferies On Reliance Industries

Maintain Add, Target Cut To Rs 3,200 From Rs 3,300/Sh

50% Decline In Retail Capex A Key Positive Of FY24 Annual Report

Cons Capex Declines Only by 7% In FY24

Telecom Capex Remaining High & Other Segments See 5x Rise

Optimistic Of Further Decline In Capex & Net Debt As Telecom Capex Moderates

Pace Of Invst In New Energy Remained Slow With FY24 Invst Of $1-1.2 Bn

Have Further Moderated Our Retail & O2C Earnings For FY25

Kotak Instl Eq On Reliance Industries

Maintain Add, Target Cut To Rs 3,200 From Rs 3,300/Sh

50% Decline In Retail Capex A Key Positive Of FY24 Annual Report

Cons Capex Declines Only by 7% In FY24

Telecom Capex Remaining High & Other Segments See 5x Rise

Optimistic Of Further Decline In Capex & Net Debt As Telecom Capex Moderates

Pace Of Invst In New Energy Remained Slow With FY24 Invst Of $1-1.2 Bn

Have Further Moderated Our Retail & O2C Earnings For FY25

CLSA On Reliance Industries

Outperform Call, Target At Rs 3,300/Sh

Third Year Of New Energy Brought Co’s New Venture Closer To Reality

Co Planning To Launch Its Solar PV Giga-factory By The End Of 2024

FY24 Financials Reveal Capex Of $1 Bn For Solar Mfg Business

Upcoming AGM Should Provide More Granularity

Citi On Zydus Life

Sell Call, Target At Rs 890/Sh

Asacol HD Generic Finally Has A Generic Competition

Teva Receives US FDA Nod For Asacol HD, Gets 180-day Exclusivity

Asacol HD Likely To Have Contributed $140-160 m Of Sales In FY24

With Teva’s Launch, Sales Of The Product May Fall By 40-50% From Current Level

Impact Of Competition In This Product Should Also Reflect In The Valuations

Jefferies On IT

Nifty IT Has Outperformed Nifty In CY23/CY24 YTD By 4%/2% Despite EPS Cuts

Large Caps Have Outperformed CYTD Due To Smaller Cuts To EPS Estimates

Recent Upmove In IT May Be Led More By Technical Factors

Like TCS/Infosys Given Lower Risks To EPS Cuts & Valuation Comfort

Nomura On Apollo Hospitals

Downgrade To Neutral From Buy, Target Raised To Rs 6,856 From Rs 6,724/Sh

Rise In Hospital Profitability To Be Gradual Hereon

Digital Segment Growth Underwhelming

Valuations Are At A Premium To Most Industry Peers

Limited Opportunities To Expand Capacity In Existing Hospitals

Expect The Expansion To Be A Drag On EBITDA Margin In Near Term

Investec On Bansal wire

Initiate With A Buy Call, Target At Rs 440/Sh

Created A Niche For Itself In Commoditised Steel/Stainless Steel Wire Market

Offering The Widest Product Range And Reducing Customer/Industry Concentration

Undertaking Two Initiatives That Are Sharply More Profitable

Foraying Into Steel Cords & Backward Integration In Stainless Steel Rods

See 40%+ EBITDA CAGR Over FY24-27E, With High Teens Post-tax RoCE

Valuations At 24x FY26e PE/ 17x FY27e PE Look Undemanding

HSBC On Oil Mktg Cos

Maintain Buy On HPCL, BPCL & IOC

Target For IOC Raised To Rs 200/Sh From Rs 180/Sh

Target For BPC Cut To Rs 460 From Rs 470/Sh

Target For HPCL Raised To Rs 480/Sh From Rs 440/Sh

Downward Orientation Of Global Oil Prices Is Positive

Expect Low Government Interference In Pump Prices

Strong Marketing Margin Offsets Weakness In GRMs

Jefferies On Emcure Pharma

Initiate With A Buy Call, Target At Rs 1,600/Sh

Have Strong Chemistry Skills In Developing Complex Molecules

No Exposure To Volatile US Market A Key Differentiator

High Growth In India & Canada, Op Leverage & Debt Reduction Should Benefit

See 11% Rev CAGR From Mkt Share Gains In India & New Launches In Exports

See Profit CAGR Of 29% Over FY24-27.