Brokerage Radar: Bernstein has 'outperform' call on HDFC Bank, Jefferies has 'hold' rating on Kotak Mahindra

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes HDFC Bank, Kotak Mahindra Bank, Tech Mahindra and more.

Outperform Call, Target At `2,100/Sh

Q2 Results Bore Resemblances To Co’s (Pre-2020) Past When Earnings Delivered Nearly No Surprises

Bank Almost Appeared Immune To The Troubles Of Its Peers (NIM Declines, Rising Credit Costs)

Bank Has A Big Gap To Bridge On Both RoA And Growth But Co Seems To Be Moving Along Steadily

Buy Call, Target At `2,156/Sh

Q2 Had In-line Core Operating Profits & A Slight Beat On PAT With Better Visibility Of Earnings

Core PpOP RoA Of 2.7% Marked Second Consecutive Quarter With An Improvement

PpOP Was 2% Ahead Of Consensus & In Line With Est Driven By Lower Operating Expenses

Provisions 10% Lower Than Consensus, PAT Beat Street Estimates By 10%, In-line With Estimates

This Was The First Quarter After Merger With HDFC Ltd With An RoA Expansion To 1.9%

Neutral Call, Target At `1,750/Sh

Q2 PAT Was 3% Ahead Of Estimates Aided By Reversal Of AIF Related Provisions

NIM Were Flat QoQ With Improvement In Loan And Liability Mix

Asset Quality Was Better With Net Slippage Contained At 0.7%

Buy Call, Target At `2,286/Sh

Miss In Its Q2 By 5% Vs Est And 2% On VA Consensus Due To A Lower Fee

5% Miss In Q2 Due To Higher Loan-Losses Coupled With Slower Loan Growth

Q2 Results Indicate Multiple Headwinds Including Impact Of RBI’s Embargo & Poor Macro

Main Feature In Q2 Was Disappointing Trends In Asset Quality

Asset Quality Was In-line With Sector-wide Trend Of Increasing Delinquencies In Unsecured Lending

MFI Loans As Both Slippages And Credit Costs Higher Than Estimates

Positively, Loan Growth & Core PpOP Growth Still Remained Healthy Outpacing Peers

Overweight Call, Target At `2,030/Sh

Q2 Net Income Was 2% Below Estimates On Higher Provisions And A Marginal Miss At Core PpOP

Asset Quality Showed Strain With Net Slippages At 1.2% Driven By Pressures On Cards & MFI

CASA Growth Remains Muted At 4% YoY With Total Deposit Growth At 15% YoY

Loan Growth Slowed Down At Margin With Advances Growth Of 15% YoY

Hold Call, Target At `2,080/Sh

For Q2, Profit Was Largely In-line With Est, With Higher Other Income

NIM Continues To Underperform Peers Due To Rise In COF & Fall In Share Of Unsecured Loan

Slippage Rose From Credit Cards & MFI Loans May Slip In Next 2 Quarters

Positives: Deposit Growth Of 15%, And LDR Of 87%

Clarity On RBI Embargo & NBFC Circular Is Key

Buy Call, Target At `1,900/Sh

Steady Progress Towards Medium-term Goals

Q2 Was A Beat On Most Parameters

Growth In Communications Was Healthy

Growth In Enterprises Vertical Was Healthy In The Hi-Tech, Retail & Banking Vertical

EBIT Margin At 9.6% Was Ahead Of Consensus Estimate Of 9.2%

Underperform Call, Target At `1,440/Sh

Q2 Revenue Beat Estimates Led By Growth In Vertical & Fx Tailwinds

Normalised Profits Missed Estimates

Order Bookings Were Down YoY & Mgmt Highlighted That Demand Environment Remains Unchanged

While Q2 Revenue Beat Was Encouraging, Still See Its Aspiration Of 15% Margin By FY27 As Optimistic

Valuation At 26x FY26 PE Looks Rich, Raise FY25 By 4%

Reduction In Supply Of Legacy Gas Will Test Pricing Power For City Gas Stocks

The Allocation Cut Has Clear Risks & See 15-25% Cuts In Fair Value Of IGL & MGL

Find Up To 12% Upside For IGL, MGL After Recent Nosedive In Stock Prices

Delay In Price Hikes Or Gradual Price Hikes May Keep Uncertainty Alive

Pricing Decision By City Gas Players Will Be A Key Focus Over Coming Months For IGL & MGL

Impact On Volume Will Be A Key Focus Over Coming Months For IGL And MGL

Upgrade To Outperform, Target Raised To `170/Sh From `150/Sh

Q2 Consolidated Revenue Was Below Estimates With Movies -44% QoQ & Advertising -1% QoQ

Q2 Margin Jumped To 16% And EBITDA Came In 20% Above Estimate

PAT Was Also Ahead Of Estimate

With Miss In Q2 & Softness In Macro Ad Environment, Cut FY25/27 Revenue Estimates 7%

Retain Our EBITDA/PAT Forecasts

Underweight Call, Target At `3,245/Sh

Adjusted EBITDA Beat Estimates BY 1%

PAT Missed Estimates Due To Voluntary SGF Contribution & Provisions Towards Regulatory Matters

Stronger Other Income Led To A 2% Beat On Revenues

Think Key Topics On The Call Will Be Regulatory Risks And Timeline Of Joining Of New CEO

Neutral Call, Target Cut To `225/Sh From `270/Sh

Q2 PAT Was Below Estimates, Led By Sharp Rise In Provisioning From Higher Unsecured Delinquencies

Bank Noted Higher Stress On Its Credit Cards & MFI Book

Advances Growth Has Come Off To 15%, Driven By Slowdown In Unsecured Lending

Expect Growth To Remain Below Guidance In FY25 Given Uncertain Credit Environment

Improving RoA Profile For Wholesale & Secured Retail Businesses Were Key Positives

Positives Were Overshadowed By Weakness In Unsecured Driving Decline In RoA To 0.64%

Valuations Are Cheap At 8x FY26 P/E But See Limited Re-rating Scope In Current Environment

Buy Call, Target Raised To `8,600/Sh

Wires & Cables Margin Was Impacted Due To Higher Competition In Wires

Demand Is Expected To Further Pick-up In H2

H2 Margin Tend To Be Accretive Vs H1 & Management Expects The Same Trend To Continue

EPC Revenue Contribution Will Remain Elevated, Pick-up In Exports Will Aid In Recouping Margin

Overweight Call, Target Cut To `1,273/Sh

Organic Business Revenue Growth Was Weak, At 5%, With Volume Decline In Tea

Growth Businesses' Organic Growth Was Weaker, At 15%

Non-Branded/International Continued To Do Well

Market Share Over Margins Is The Key Focus

Rural Is Recovering Gradually, And Urban Demand Has Softened

Downgrade To Underperform From Buy, Target Cut To `2,540/Sh

Co Delivered In-line Q2 Results

Softness Continues In Subscriber Adds

Softness In Subscribers Led To Collections Growth Moderating To 5% YoY, Key Negative From Q2

Collections Growth Is Likely To Range Between 10-15% Unless Subscriber Adds Pick Up

Cut Estimates By 4-12%

Continued Surge In Subscriber Churn Despite Multiple Interventions By Mgmt Has Surprised Negatively

India Cement Sector Looks Set For Consolidation With Larger Players Turning Aggressive

Urbanisation And Infrastructure Projects Should Boost Medium-term Demand

Utilisation Should Remain Stable, Despite New Capacity

Industry Should Recover From Recent Weakness As Government Capex Grows 40% YoY, Post Monsoon

Industry Should Recover From Recent Weakness As Cos Try To Cut Costs

Initiate Overweight Call On Ultratech, Target At `13,750/Sh

Initiate Neutral Call On ACC, Target At `590/Sh

Initiate Overweight Call On ACC, Target At `3,020/Sh

Initiate Neutral Call On Shree Cement, Target At `25,175/Sh

Initiate Underweight Call On Dalmia Bharat, Target At `1,550/Sh

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