Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes PFC, Tata Power, Suzlon Energy, LIC Housing Finance, among others.
PFC
CLSA on PFC
Outperform Call, Target Rs 610/Sh
Q1 Net Profit Was Up 24% YoY, & 5% Ahead Of Estimates Primarily Due To Forex Gains
Loan Growth Was Slow At 10% YoY
Mgmt Indicated It Is Undergoing Transformation Projects, Which Should Settle Down Soon
FY25 Growth Guidance Of 12-15% Remains Unchanged
On Asset Quality, Co Has Neither Seen New NPA Formation Nor Any New Resolutions In Q1
One State Utility Has Slipped To Stage 2, Thus Provision Coverage Has Inched Up QoQ
Bernstein On PFC
Outperform Call, Target Rs 620/Sh
A Disappointing Quarter With Decline In Loan Book QoQ, But Mgmt Retained Their Guidance
Confident In Loan Book Growth Coming In & See This Quarter As A Temporary Blip
Visibility On Reversal Of Provisions Is Also Improving With A Good Bid Received For KSK Plant
Co’s Strategy To Hedge 100% Of Yen Borrowings As Of End Of Q1 Seems To Have Worked In Its Favor
Tata Power
CLSA On Tata Power
Underperform Call, Target Rs 297/Sh
Key Message From Q1 Was That Worst Of Mundra IPP Losses May Be On Weak Coal & Govt Advisory
Renewable Energy Independent Power Producers A Key Catalyst That Investors Look For
Continue To See Declines In PAT Due To Drops In Wind Utilisation Rates
Coal Profit Fell 69% YoY On A Decline In Seaborne Coal Prices
RE IPP Business Saw 12% Decline In Ex-treasury PAT On Lower Wind Utilisation Rates
RE EPC Business Did Well Due To Benign Solar Cell Prices
Stock Remains Expensive At A 35x CL25 PE
Jefferies On Tata Power
Underperform Call, Target Rs 325/Sh
Q1 PAT 13% Below Est Due To Lower Coal Mine Profitability
Mgmt Guidance Of `2,000 Cr Capex In FY25 Is At Higher End Of Earlier Plans In Renewables, T&D & Storage
Maintain Estimates As Solar Rooftop And EPC Can See Recovery Ahead
Remain Concerned On Execution Delays & Mundra Plant Issues
Morgan Stanley On LIC Housing Finance
Downgrade To Underweight, Target Rs 550/Sh
Expect PpOP To Decline 7% YoY In FY25 & Rise 4% YoY In FY26
There Is Downside Risks From Interest Rate Cuts
Headline P/E Is Less Than 7x
As Structural Pressures & Earnings Volatility Become Increasingly Evident, P/E Could De-rate Further
View NIM & Loan Spread Expansion To Multi-yr High Levels That Co Saw In FY24 Is Unsustainable
Morgan Stanley On Suzlon Energy
Overweight Call, Target Rs 73.4/Sh
Renom Energy Services Acquisition: Strategic Entry Into Multibrand OMS
Renom Is A Market Leader With 2.5GW Of Contracted Capacity
Presence In Seven Windy States & Experience Of Maintaining Turbines Of 14 Different Makes
Implied Valuation Of 4x Price To Sales, Cheaper Than Its Listed Peer
Morgan Stanley On PB Fintech
Equal-Weight Call, Target Rs 1,125/Sh
Q1 Adjusted EBITDA Beat Estimates
Core Business Profitability Was Strong, Despite Weak Disbursement Growth
Adjusted EBITDA Loss At New Business Initiatives Narrowed
Investor Focus Will Be On The Sustainability Of Premium Momentum & A Pickup In Credit Biz
Nomura On Shree Cement
Buy Call, Target Rs 33,400/Sh
Q1 Lower-than-expected Blended Realisation Leads To EBITDA Miss
Adjusted For Merchant Power Sales, Cement EBITDA Should Be Around `904/t
Capacity Expansion: On Track To Reach 74 mt By FY26
Stock Is Currently Trading At 17.5x 1-Yr-Fwd EV/EBITDA
Nomura On Lupin
Buy Call, Target Rs 1,952/Sh
Q1 Showed Healthy Growth Across Markets; Expansion Of EBITDA Margin
Q1 Sales/EBITDA/PAT 4%/9%/19% Higher Than Estimates
EBITDA Margin Up 527 bps YoY, 120 bps Higher Than Estimates
Adjusted For Glumetza Settlement Charges, EBITDA Margin Was 24.7% (Vs Reported 23.3%)
Co Now Has Net Cash Of `19 Cr Vs `48 Cr Debt In Q4, & `130 Cr Debt As At End Q1FY24
TVS Motors
Jefferies On TVS Motors
Buy Call, Target Raised To Rs 3,000/Sh
Q1 EBITDA & Recurring PAT Grew 26-31% YoY To New Highs
Q1 EBITDA & Recurring PAT In-line With Est; EBITDA Margin Rose 10 bps QoQ To 11.5%
Co Should Be A Key Beneficiary Of 2W Demand Revival In Both Domestic And Export Markets
An Improving Franchise Should Also Drive Continued Margin Expansion
Co Has 3 Product Launches In India In H2CY24; Norton Launches Will Start By End-CY25
Expect EPS To More Than Double Over FY24-27
Macquarie On TVS Motors
Outperform Call, Target at Rs 2,783/Sh
Q1 Gross Margin Surprises Positively
EBITDA Margin Improved To 11.5% — Highest Ever; However, In Line With Estimates
Multiple New Launches For H2FY25
Investment In Subsidiaries Key To Track From A Free-Cash-Flow Standpoint
Nomura On Gland Pharma
Downgrade To Reduce, Target at Rs 1,819/Sh
Q1 Was A Weak Quarter
Break In Momentum Post Recovery In Past 4 Quarters
1Q Sales/EBITDA/PAT Missed Estimates By 12%/32%/32%
Ex-Cenexi, Revenues Missed Est By 18%
Lower Revenues & Milestone Income Led To Contraction In EBITDA Margin
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