Brokerage Radar: Gold financiers get bullish upgrades, muted calls for Grasim, Eicher Motors

Brokerage Views for February 11.

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Eicher Motors, Grasim Industries, FSN E-Commerce, Rainbow Medicare and Apollo Hospitals among others.

CLSA On Gold Financiers

Upgrade Muthoot To Outperform From Hold, Target Raised To Rs 2,400/sh

Outperform Call On Manappuram Fin, Target Raised To Rs 225/sh

Momentum In Gold Loan Segment In 9MFY25 Has Remained Robust

Bks Have Reported 70% YoY Growth Here As Of Dec 2024, Led By SBI

Muthoot Fin & Manappuram Fin Have Also Gained From Momentum/Restriction On Peers

Hindalco

Citi On Hindalco

Buy Call, Target Rs 725/sh

Novelis’ Q3 Adj EBITDA Fell 19% YoY, Hurt By Higher Aluminum Scrap Prices

EBITDA Also Fell On Unfavorable Product Mix

Novelis Expects 4QFY25 to Be Stronger & More In-line With Q2FY25

Novelis Expects Higher Seasonal Volumes, More Favorable Product Mix In Q4

Novelis Is Diversifying/Expanding Scrap Inputs

Novelis Working On Ops & Cost Efficiency To Offset Pressures From Rising Scrap Prices

Believe Most Concerns Are Likely Priced In

Stk Trades At Sub-5x (Adjusting For Capital Work In Progress)

Jefferies On Hindalco

Buy Call, Target Rs 800/sh

Novelis' Q3 EBITDA Fell 19% YoY(6% Miss); Volumes Declined 1% YoY

EBITDA/t Fell 17% QoQ To $406 On Higher Scrap Prices And Adverse Mix

Novelis Expects Q4 Margin To Rise QoQ To Near-Q2 Level Boosted By New Contract Pricing

Aluminum Costs Are A Pass Through For Novelis, US Import Tariffs Could Pose Some Risk

Grasim Industries

Jefferies On Grasim

Buy Call, Target Rs 3,150/sh

Q3 EBITDA Below Est, Largely Led By Lower VSF Profitability

New Biz Revenues Jumped 52% QoQ & EBITDA Loss Shrinks To Rs 325 Cr Vs Rs 350 Cr Loss QoQ

Paint Segment Rev Improved, B2B eCom Revenue Also Grew

Net Debt Increased As Paint Capex Touches 90% Of Target

MS On Grasim

Equal-weight Call, Target Rs 2,950/sh

Q3 EBITDA Missed, But Good Traction In Paints

CSF+CFY Volumes Were Flat YoY & 2% Below Est

Caustic Soda Sales Volumes Grew 1% YoY, 4% Above Est

Production Is Steadily Ramping Up –Co Has Further Expanded Its Product Portfolio

MS On Eicher Motors

Underweight Call, Target Rs 3,855/sh

Q3 EBITDA Missed Est Owing To Weaker Mix Plus Higher Promotional & Launch Expenses

Growth Over Margins Is Right Strategy

Stock Pricing In High Growth & High Margins, Achieving Both Will Be Tough

Lower FY25-27 EBITDA Margin Est

MS On Apollo Hospitals

Overweight Call, Target Rs 8,159/sh

Cons Revenue Led By 15% YoY Growth In AHLL & Apollo Healthco

13% YoY Growth In HC Services Segment

Consolidated EBITDA Was Up 24% YoY, In-Line With Estimates

Working With Microsoft To Advance Healthcare Ai With Focus On Disease Progression & Genomics

24/7 Cash Losses Reduce QoQ But GMV Growth Has Also Moderated

Retail Insurance Sourcing To Start In Q4FY25

MS On Nykaa 

Overweight Call, Target Rs 200/sh

Both Revenue Growth & EBITDA Margins Saw A Strong Beat

Like Consistent Topline Delivery In Beauty Over Last Few Qtrs In Weak Demand Environment

View Cos As A Consumer Business With A Technology Edge

Overall Build In A 29% Top-Line CAGR Over FY24-27, Led By 29% Growth For Beauty Biz

HSBC On Rainbow Medicare

Buy Call, Target Rs 1,720/sh

Cost Control Led Beat In EBITDA Margins In Q3FY25; Revenue Was In Line With Est

Expect EBITDA Margins Of 31-32% Over FY25-27

Scale-up In Recent Units To Offset Costs Related To New Beds

Key Catalyst Will Be Start Of Construction Of The Gurugram Facilities