Brokerage Radar: Goldman Sachs raises Dr Reddy's target price, Jefferies cuts IFDC First target

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Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes ICICI Bank, Mphasis, Bandhan Bank and more.

ICICI Bank

CLSA On ICICI Bank
Outperform Call, Target Raised To `1,500/Sh
Delivered Balanced Q1, Loan Growth & Deposit Growth Were In Mid-Teens
NIM Moderated A Few Bps Sequentially
PPoP Grew Slightly Faster Than NII Due To Some Ops Leverage
Gross NPL Ratio Was Stable & Credit Costs Were Benign At 45 bps
Among Large Banks, ICICI Has Highest Standard Asset Provisioning
Fee Income Was SlightlyTepid, Growing 13% YoY

Bernstein On ICICI Bk
Market Perform, Target `1,250/sh
Reported A Solid Set With A Steady Sequential RoA At 2.36%
Strong Treasury Gains Offsetting A Marginal Drop In NIM
Normalisation Of Credit Costs From Ultra-Low Levels Seen In Last Qtr
Loan Growth & Deposit Growth Were Both Healthy
Loan & Deposit Growth Driving A Healthy +14% YoY EPS Growth

JPMorgan On ICICI Bk
Outperform Call, Target Raised To `1,375/Sh
Q1 PAT Was In-Line With Est, NII Was In-Line As Well
NIM Decline Along Expected Lines
Core PPoP Was Up 11% YoY With Overall Avg
Asset Growth At 16% YoY With NIMs Having Moderated 42 bps YoY
Opex Growth At 11% YoY Has Been Lagging Overall Asset Growth
Opex Growth Could Offset NIM Pressures To Support Operating Margins
Bank  Saw Seasonally Higher Slippages In Q1 On Account Of Its KCC Portfolio
Credit Costs Were However Benign With 13 bps Aid From AIF Provision Reversal

Bandhan Bank

CLSA On Bandhan Bank
Outperform Call, Target `240/Sh
Went Into Results With Muted Expectations On Asset Quality
Were Positively Surprised By Q1– Net Slippages Declined 50% YoY
Credit Costs Came In At 1.7% Vs 2.4% YoY
Q1 Is Generally Slow On Balance Sheet Growth & This Qtr Was No Exception
Mgmt Still Maintains Its 18-20% Loan Growth Tgt For The Year
See Loan Growth Largely Coming In The Second Half
NIM Was Stable & Opex Was In-Line
Raise PAT Est By 5-7% Driven Largely By 20 bps Lower Credit Costs

JPMorgan On Bandhan Bank
Overweight Call, Target `260/Sh
Q1 PAT Was Well Ahead Of Est, Driven By Higher NII & Lower Provisions
Non-II growth Was Aided By Release Of Provisions On SR Redemption
Non-II Growth Was Aided By Recovery From Written-Off Accounts
Asset Quality Performance Was Better Than Est In A Seasonally Weaker Q1
Overall, Gross Slippages Fell Below 3% After 14 Quarters
Net Flow Into 0+ MFI Book Was Contained At 3.4%

Cholamandalam Investment and Fin Co

Nomura On Chola Fin
Reduce Call, Target `1,150/Sh
Q1 Mixed Bag; Strong Growth But Worsened Asset Quality
Profitability Moderation Driven By Elevated Credit Costs
Healthy AUM & Disbursement Growth; NIM Contracts
Rich Valns Leave No Margin Of Safety

Jefferies On Chola Fin
Buy Call, Target `1,525/sh
Q1 CIFC's PAT 3% Beat Vs Our Est
Stronger NII, Lower Opex Offset Higher Provision.
AUM Grew 35% YoY As Expected, Auto Disbursement Growth Improved
NIM Rose 10 Bps QoQ Due To Higher Yield, Lower CoF
Credit Cost Was Up 19 Bps YYy At 1.5% Vs Est Of 1.35%

Mphasis

Citi On Mphasis
Sell Call, Target `2,235/Sh
Reported In-Line Q1, Revenues Were Largely Inline
Margins Were Slightly Lower
TTM Down 42% YoY In Q1
There Are Deals Won In FY24 To Be Converted To Revenues
Headcount Declined ~7% YoY In Q1
Mgmt Says, Discretionary Spends Trends Hasn’t Changed Vs Q4
Though There Are Some Green Shoots & Early Signs Of Recovery In Mortgage.

Ms On Mphasis
Equal-Weight Call, Target Raised To `2,900/Sh
Mgmt Commentary Continues To Be Constructive
BFS Vertical Has Been Witnessing Improving Trends
However, Execution Has Scope To Improve
Post The Run-Up Since End Of May, Valuations Are Not Cheap

MS On Punjab National Bank
Underweight Call, Target Raised To `80/Sh
NII Broadly In-line With Est & Led By Avg B/S Growth
Margins Moderated By 3 bps QoQ To 3.07%.
Asset Quality Trend Was Better Than Expected With Lower Slippage, Credit Cost
Mgmt Lowered FY25 Credit Cost Guidance To 50 bps Vs 100 bps Earlier
Recovery From W/Off Accounts Declined QoQ
Adjusted For Which, Net Credit Cost Was Just 2 bps Vs Negligible Last Qtr
SMA 1&2 Appears Elevated At 2.5% & Is Key To Watch

Bernstein On Indian Energy Exchange
Underperform Call, Target `110/Sh
Strong Qtr & Run-Rate For July Seems To Indicate An >25% Vol Growth
With Abundant Domestic Coal Availability
Un-Requisitioned Power & Renewable Plants Trying To Leverage Infirm Power Think Near-Term Tailwinds Are Supportive For Vols
On Regulatory Front Though, Next 3-6 Months Could Carry Some Uncertainty
Results Of Shadow Coupling Expected From Regulator

GS On Dr Reddy’s
Neutral Call, TP Raised To `6,625/Sh
Q1 Rev/EBITDA Above Est, Driven By Robust Performance In Core Markets
Margin Beat Primarily Driven By Better GMs
EBITDA Margin Partially Offset By Higher SG&A Spends
Raise FY25-27E EPS By 2%-12% To Factor In Q1 Beat
Higher Growth For India/US Business & Updated Biz Outlook

GS On IndiGo
Buy Call, Target `4,800/Sh
Q1 EPS Of `71 Was Above Est
Beat Driven Largely By Higher One-off Compensation Booking
Beat Partially Offset By Higher Costs
Yields And ASK/RPK Were Largely In-Line With Est
Passenger Fleet Size Increased To 379 Planes, With 8 From New Deliveries
Aircraft Groundings Were Stable At Mid-70s
Co Expects Groundings To Start Coming Down By End Of FY25
For Q2, Co Expects High-single Digit YoY ASK Growth

Jefferies On IDFC First Bk
Buy Call, Target Cut To `95/SH
Q1 Profit Missed Estimates Due To Higher Credit Losses In MFI Segment
Drag May Sustain In Q2-Q4 As Well
New Disclosure On Vintage Delinquency Of Other Retail Loans Is Encouraging
Deposit Growth Of 36% To Aid Loan Growth & Improvement In LDR (97% Now)
Op Efficiencies Are Evident And Will Aid Profits Over H2FY25-27
Lower Est For MFI Losses, But See RoA Rising To 1.4% In FY27

Jefferies On IglHold Call, TARGET `485/Sh
EBITDA Was 20% Ahead Of Est On Lower Gas Costs
Volumes Declined YoY And Were 2% Below
Expect Vol Growth To Remain Subdued Over Fy25-27e
Slowdown In Delhi (70% Of Vol) & Growing EV Risk
Rising APM Shortfall Puts A Lid On Margins
Recent Price Hikes May Not Compensate Fully For The Higher Reliance On LNG
Cut Earnings By 8%/1%, On Lower Margin Assumptions

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