Brokerage Radar: BofA cuts Hero MotoCorp's target price; analysts bullish on HAL, M&M

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Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Hero MotoCorp, Mahindra & Mahindra, Hindustan Aeronautics, Ola Electric and more.

Hero MotoCorp

Nomura On Hero Moto
Buy Call, Target `5,663/Sh
Rural Revival & Xtreme 125 Key Catalysts
Q1 Margin Lower, ICE Improves But EV Drags
EV Cost Reduction Should Address This In H2FY25
Trim Volume Growth Estimate To 6% For FY25/26F (7% Earlier)
Trim Revenue Growth By 2-3% On Lower ASPs

Goldman Sachs On Hero Motocorp
Sell Call, Target `4,150/Sh
Reported A Q1 Miss
Gross Margin Of 32.3% Was -50 bps Below BBG Cons
Management Indicated Spare Parts Decline In Revenue Share As A Reason
However, YoY ASP Trend Of +3% Trailed Peers Like Bajaj Auto & Eicher

BofA Sec On Hero Moto
Buy Call, Target Cut To `6,000/Sh
Margin Miss On Mix & EV Drag Mkt Share Recovery Is A Key Catalyst
Analyst Call: Rural + Xtreme 125 Ramp Key To Share Gains
Stock Valn (Adj For Ather & Captive Fin Co) At 17x FY26 PE Is Cheap Vs Peers

Morgan Stanley On Hero Motocorp
Underweight Call, Target `4,110/Sh
Hero's 1QF25 Was Weaker Than Estimates
Stronger ICE Margin Was Offset By EV Losses And Lower Sales Of Spares
Under-Representation In Faster-Growing Premium 2Ws And EVs

Jefferies On Hero Moto
Buy Call, Target `5,800/Sh
Q1 EBITDA Below Est Led By Lower-Than-Expected ASP & Margin
Believe Indian 2-Ws Are Poised For Strong Double-Digit Growth Over Next 3 Years
Co’s Market Share Decline In 2-Ws & Adverse Demand Profile Shifts Are Concerns
Cut FY25-27E EPS By 5-6% But Still See A 13% EPS CAGR Over FY24-27E

Mahindra & Mahindra

Nomura On M&M
Buy Call, Target `3,417/Sh
Thar Roxx Launched At `12.99 Lk Onwards; Potential To Redefine Urban SUVs
Appreciate Consistency With Which MM Has Come Out With Successful Launches
Every Single Launch, Even The Facelifts & Variants Show A Lot Of Effort
Not Merely An Extension Of The 3-Door Thar But Is Substantially Improved In Many Areas

Morgan Stanley On M&M
Overweight Call, Target `3,304/Sh
Co Has Shown Good Success In Its Past Launches
Found Thar Five-Door Package Also Impressive
Thar Three-Door Sales Stand At 5,900 Units/Month (Last Six Months' Average)
Expect Three- And Five-Door Variants To Collectively Clock 8,000-9,000 Unit Sales/Month
Maintain That M&M Will Be Fastest Growing PV Company
See A Strong Jump In Sales In Coming Months, Driven By Festive Demand

Hindustan Aeronautics

Jefferies On HAL
Buy Call, Target `5,725/Sh
Q1 Revenue Was 3% Above Expectations
EBITDA Was Lower As Margins Contracted 440 bps To 22.8%
Depreciation Was 27% Lower YoY And Contributed To The Profit Beat
Believe Strong Order Book Gives Confidence Of Double-Digit Growth For 3-5 Yrs
Volatile Margin Should Pick-Up In H2 With Revenue Delivery

UBS On HAL
Buy Call, Target `5,700/Sh
Q1 Operationally In Line; On Course For Robust Ordering Momentum
Expect HNAL To Receive Orders Of `1 Lk Cr In FY25
LCH Prachand, 240AL31 Engines & SU30 Upgrades Being Major Ones
Expect `2 Lk Cr To Be Awarded Over The FY25-26 Period

CLSA On HAL
Outperform Call, Target `4,731/Sh
Pipeline Intact & Q1 Weak Large Engine Orders Pushed To Q2 & Rest To H2FY25
1QFY25 EBITDA Down 6% But PAT Up 14% YoY
Orders Slowed On A Delay In Russia-Linked Programs To 2QFY25

HSBC On Ola Electric Mobility
Initiate Buy, Target `140/Sh
Despite Conservative View On EV Penetration In India Along With Other Uncertainties
Believe Ola Is Worth Investing In Given Sustained Regulatory Support
Ola’s Has The Ability To Reduce Costs, With +Ve Risk-Reward In Its Battery Venture
Slower Penetration Of e2-wheelers & Battery Plant Issues Are Key Downside Risks

Jefferies On GMR Infra
Buy Call, Target Raised To `106/Sh
Q1 EBITDA Ahead Of Est On 8% Growth In Pax Traffic
Q1 Saw Growth In Non-Aero And Subsidiary Rev
Co Recently Announced Completion Of Simplification Of Holding Structure
Co Recently Announced Re-Opening Of T1 At DIAL (New Terminal)
New Tariff At DIAL Is Expected By Q4FY25
Co Is Focussed On Growing Non-Aero Biz
With More Capacity, Non-aero Rev/Pax May See A Healthy Jump From Q3/4QFY25

Apollo Hospitals

HSBC On Apollo Hosp
Buy Call, Target `7,215/Sh
Q1 Hospitals (HCS) Revenue Growth Led By 11% Inpatient Volume Growth
Other Segments Also Grew Mid-Teens
HCS Outlook Intact For 24/7 To Achieve Cost Breakeven In 6-7 Quarters
HCS Gross Merchandise Value (GMV) Picking Up
Launch Of Insurance Service Via 24/7 Platform Will Be Key

MS On Apollo Hospitals
Overweight Call, Target `7,110/Sh
Cons EBITDA After 24x7 Cost Was `670 Cr, In-Line With Est & Consensus Est
Net Profit (After Minority Interests) Came In At `310 Cr

Max Financial Services

Nomura On Max Fin
Downgrade To Neutral, Target `1,130/Sh
VNB Growth To Lag Peers, Potential Upside Looks Limited
Mgmt Expects New SV Regulations To Impact VNB Margin By 100-200 bps
Believe Max Life Will Have To Deliver Much Higher VNB Growth To Meet Its Guidance

Jefferies On Max Fin
Buy Call, Target `1,270/Sh
Saw Weaker VNB Growth Of 3% YoY Despite 31% Rise In Premium
Weaker Mix Dragged Margins
Co Is Benefiting From Ramp-Up Of E-Com, Agency And Integration With Axis
Encouraged To See Mgt Indicate Limited Impact Of New SV Norms On Margin
Limited Impact Of SV Norms This Will Aid Mid-Teen Growth In VNB Over FY26-27

Nomura On IPCA Labs
Buy Call, Target Raised To `1,502/Sh
Earnings Ahead Of Estimates; International Revenues Weak
Low Costs & A Sustained EBITDA Recovery At Unichem Were Key Positives
International Sales Were Impacted By Technical & Supply Chain Issues
But, These Issues Should Be Addressed In Due Course
For FY25 Mgmt Now Expects Standalone Rev Growth A 9% (Previously 10.5-11%)
Projects EBITDA Margin At 18.5-19.5% (Previously 18.0-18.5%)
Forecast A 25% Earnings CAGR Over FY25-27
Raise FY25F/26 EPS By 6%/3% On Likely Declined Costs

HSBC On Rainbow Hospitals
Downgrade To Neutral, Target Cut To `1,290 From `1,500/Sh
Revenue Was In-Line In Q1; Costs For New Units Lowered EBITDA Margin
Expect Rangebound EBITDA Margin At 30-31%
Growth Drivers Priced In, In Our View

JPMorgan On DLF
Overweight Call, Target Raised To `1,000/Sh
Believe Co Will Surpass A Coveted $1bn Operating Cash Flow At Group Level In FY25
Co Riding A Strong Sales Cycle & Compounding Of Free Cash At Its Rental Business
This Opens Up Significant Strategic Flexibility At Group Level On Acquisitions
See Upside To Pre-Sales, Margin & Cash Flow In FY25

Jefferies On NazaraDowngrade To Underperform Call, Target `720/Sh
Q1 Results Missed Estimates Due To Continued Weakness In Most Segments
Unclear Success Rates On Recent Acquisitions, Adds To Execution Risks
Raise FY25/27 Revenue/EBITDA Ests By 24-36%
Cut Earnings By 6-29% To Factor Acquisitions

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