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