Brokerage Radar: Jefferies lowers target for Titan; Nomura cuts price aim on ABB India

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Titan, Dr Reddy's, GAIL and more.

Titan

Morgan Stanley On Titan
Equal-weight Call, Target `3,532/Sh
Q2 top-line growth was strong but big negative surprise on margins vs est
Buyer growth was strong owing to duty cut & per management
H2 demand is expected to be strong
FY25 Cons jewellery EBIT margin guidance lowered to 11-11.5%

Jefferies On Titan
Hold Call, Target Cut To `3,400/sh
Impact Of Custom Duty Weighed Negatively On Reported Margins
Adjusted Margin Also Weak Due To Inferior Product Mix (Lower Studded)
Overall, Q2 While Met Muted Expectation, Was Still Lower Than Consensus
Mgmt Commentary On Demand Was Reasonably Positive
Cut In Jewelry Margin Guidance Would Be Viewed -Ve On Weak Solitaire Demand
Cut EPS By 3-7%

Berger Paints

Nomura On Berger Paints
Reduce Call, Target `500/Sh
Weak Quarter; Embarking On New Initiatives To Improve Share
Q2 Below estimates; Volume/Sales Growth Below Estimates

Morgan Stanley On Berger Paints
Underweight Call, Target Price At `466/Sh
Q2 Missed Estimates On Topline And Margins
EBITDA Margin Was At The Lower End Of Management Guidance
Management Expects Topline Growth To Improve In H2
No Major Impact From Competition, So Far

GAIL

Morgan Stanley On GAIL
Overweight Call, Target Price At ` 258/Sh
Reported 19% integrated RoE For Gas Pipes, With Volume Growth Continuing To See Benefits
At 1.2x F26e P/B With Rising Domestic Gas Penetration, See Multiple Triggers For Stk To Re-Rate

Jefferies On GAIL
Upgrade to Buy Call, Target Price At `240/Sh
EBITDA Rose 7% YoY & Marginally Below Est On Better Gas Tax And Petchem
New Pipelines Driving Market Share Gains, See This Continuing
More Pipelines Are Commissioned By Mid-CY25
Trading Profitability Should Continue On Muted Henry Hub Price
Project 9% EBITDA CAGR Over FY24-27
20% Correction From Recent Peak Makes Risk Reward Favourable

Morgan Stanley On Manappuram Fin
Equal-weight Call, Target Price At `170/Sh
Trim F2026-27e EPS by 1-2% Mainly On Lower Loan Growth
F2025e EPS Increase 7% Owing To F2Q25 beat
Valuation Remains Cheap; However, Given RBI Ban On MFI Subsidiary
Think Investor Interest Could Take A While To Return

Morgan Stanley On PB Fintech
Equal-weight Call, Target Price At `1,375/Sh
Strong Rev Momentum Continued; Rev And Adjusted Ebitda Were Better Than Our Est
Adjusted EBITDA Margin Was Steady QoQ
Valuation Is Expensive
Good Rev Performance Could Support Stock In Near Term

Nomura On ABB
Neutral Call, Target Price Cut To `7,570/Sh
Cautious In Short Term, But Bullish Over Long Term
EPS Cut For CY24F/CY25F/CY26F by 4%/7%/7% On Slower Than Estimated Execution Rate
Witnessing An Uptick In Large Cycle Contracts

Jefferies On Dr Reddy’s
Underperform Call, Target `1,130/Sh
Q2 Was A Small Miss To Est On Weaker Product Mix & Higher R&D Spend
US Growth Was Subdued QoQ But Base Biz Growth In India Recovered To 9%
Acqn Of Nicotineel OTC Brands Has Been Completed
Nicotineel OTC Brands Synergies Will Be Realised In A Phased Manner
No Major Pdt Launches In US & Elevated SG&A Costs Mean No Near-Term Catalysts

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