Brokerage Radar: CLSA raises DLF's target, Jefferies rates Piramal Enterprises as 'Underperform'

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes LIC Housing, DLF, Piramal Enterprises and more.

UBS On Autos
December Industry Retails On Track To Post Decline Led By Hero & Bajaj
TVS & Honda Gain Big On YoY & MoM Market Share; Hero Loses The Most
Looking At Mid-month Vahan Data, Expect Ind To Post 7-9% YoY Decline In Retails For Month
See Hero Motocorp & Bajaj Auto Clocking 15% Retail Decline
TVS Motor & Eicher Motors Are On Track To Post Growth
EVs Continue To Gain Traction Even As Mkt Leaders See Significant Volume Erosion

Citi On LIC Hsg Fin
Buy Call, Target At `851/Sh
Temporary Hitch In Hyderabad/Bangalore Adversely Impacts Disbursements Growth
Hyderabad/Bangalore Constitute More Than One-Fourth Of Its Disbursements
Seasonally Robust Traction In Q3 Might Not Be Evident This Yr, Though Should Course Correct In Q4
Tight Liquidity Pressurises Borrowing Cost And Will Offset Favorable Yield Levers
NIM To Sustain At Lower End Of Guidance At 2.7%
Resolution Through Arc Sale For Cash Consideration Of `250 Cr To Release Provisions

Citi On M&M Fin
Neutral Call, Target At `300/Sh
Looking Forward To Nuanced Scale Up Of Mortgages, Ramp Up SME Lending/Lap
Looking Forward To Build Payments, Partnership, Leasing Businesses
Co Guides For 5-7% Disbursements And High-teens AUM Growth For FY25
Branch Has Profitability Targets Through Desired IRR Levels
Opex/Assets At 2.7% With 10 bps Upward Bias As Will Aggressively Expand Footprint
Evaluate Equity Raise In H2FY25

CLSA On DLF
Outperform Call, Target Raised To `975/Sh
Following Up On Last Channel Check On ‘The Dahlias’ Project, Find That Co Has Sold 130-150 Units
Estimate Total Sales To Be Worth `10,000-11,000 Cr In ‘The Dahlias’ Project So Far
Such Demand Is Positively Surprising, Especially Considering The Uber-Luxury Product
Sales So Far Are Likely Higher Than Assumptions For FY25

Jefferies On Piramal Ent
Underperform Call, Target At `820/Sh
Retail AUM Growth Will Moderate But Stay Near 25-30% In FY25
RoA Can Improve Slowly Due To Unwinding Of Legacy Book, Lower Opex & Higher Fee Income
Expect Co To See Some NIM Pressure, Higher Credit Costs Near Term
Contrary To Market Optimism, RoA Improvement Should Be Gradual (Est RoA <1.5% FY25-27)

MOSL On CIE India
Buy Call, Target At `575/Sh
Indian Business To Remain The Growth Driver, Europe Biz Unlikely To Recover Soon
Management Aims To Sustain Margin Of European Biz At Current Levels
Co Targetting To Expand Margin Of Indian Business To 19% Over The Next 2-3 Years
Have Lowered Est For CY25-26 By 4%/5% Due To Continued Weakness In Europe’s Auto Demand

Nuvama On Paints
Reckon Asian Paints Shall Grow Slower Than Berger Paints & Indigo Paints In H2FY25
Slower Growth Expected For Asian Paints Due To Higher Indexation To Big Cities
Higher Indexation Borne The Brunt Of Urban Slowdown Due To Food Inflation & Other Reasons
Being A Pan-India Player, Asian Paints Gets Affected The Most Initially By New Competition
Birla Opus’ Entry In Big Cities Has Limited Initial Impact On Berger Paints And Indigo Paints
Berger Paints & Indigo Paints Preferred Picks (Both Buy)
Continue To Prefer Pidilite Over Paints Players

Nuvama On City Gas
IGL, MGL & Guj Gas Rebounded 22%, 10% & 12%, Respectively, From Nov Lows Post-Twin APM De-Allocation
Argue Fundamentals Are Unsupportive As Mkt Is Pricing In Elusive GST Rollout For Natural Gas
Reckon 9–11% Upside Potential To CGDs’ FY26 EBITDA If GST On CNG Is Rolled Out At 12%
Administrative Impasse Is Proving To Be Insurmountable Though
Anti-profiteering Rules Imply Benefits Must Be Passed On
Expect Q3FY25 EBITDA Margin/scm To Plunge 17–44% QoQ
Expect Plunge In Q3 EBITDA Margin As 1% Realisation Uptick Falls Short Of 4–11% Weighted Avg Gas Cost Hike
Reiterate ‘Reduce’ On IGL And MGL, & ‘Hold’ On Guj Gas

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