Brokerage Radar | Morgan Stanley has 'Underperform' on Zinka Logistics, Investec bullish on KFin Tech

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes JSW Energy, IPCA Labs, Jyoti CNC Automation and more.

JPMorgan On Chola Invst
Overweight Call, Target At Rs 1,550/Sh
Recent Correction Offers A Favorable Long-term Risk Reward
Co Has Delivered Steady Long Cycle Growth Through Diversification
Pan-India Presence Alongside Diversified Product Suite To Deliver Steady Earnings Compounding
Est A 26% FY25-27 EPS CAGR Against Which The Valuations At 19x FY26 P/E Appear Reasonable

Investec On JSW Energy
Hold Call, Target At Rs 675/Sh
Acquisition Of O2 Power Is A Significant Step As It Enhances Its Renewable Energy Portfolio
The Recent Acquisition Secures Future Growth, Targeting A Capacity Of 25 GW By FY27/28
Deal May Incorporate 2.4 GW Of Operational Assets With A Run-Rate EBITDA Of `1,500 Cr

MOSL On JSW Energy
Buy Call, Target At Rs 810/Sh
O2 Power Acquisition Unlocks Value
Acquisition Of 4.7 GW Renewable Assets At 7x EV/EBITDA Unlocks `57/Sh In Value
Like Overall Quality Of Assets
Interest Cost For O2 Power At 8.8% Is Competitive And At Par With Co Itself
Like Diverse Nature Of Asset Portfolio Encompassing Solar, Wind, & Niche Segments

MOSL On Ipca Labs
Buy Call, Target At Rs 1,980/Sh
Co Is Well-Poised To Revive Its US Business Through New Product Launches & Stable Pricing
Business Is In A Strong Position, With A Better Outlook
There Are Enhanced Offerings In The Export Markets Such As Australia, New Zealand & Europe
Co’s Top 10 Therapies Experiencing Double-digit Growth Over MAT Nov’20-24

MOSL On KEI Ind
Buy Call, Target At Rs 5,150/Sh
Believe Co Benefits From Multiple Growth Drivers & Biz Strategies
There Is Strong Growth Potential In The C&W Industry Over The Long Term
Estimate Revenue/EBITDA/EPS CAGR At 17%/ 24%/22% Over FY25-27
Stock Is Trading At 49x/40x FY26/FY27 EPS, Which Remains Attractive

Equirus On Jyoti CNC Automation
Initiate Add Call, Target At Rs 1,450/Sh
Co Well-poised To Benefit From Multiple Sectoral Tailwinds – Both Domestically & Globally
Ahead Of The Curve, Co Is Developing Capabilities & Capacities To Tap Into Large Opportunities
There Is A Large Capex Plan, Including Commensurate Backward Integration
Est A 40%/47%/66% Sales/EBITDA/PAT CAGR Over FY24-FY27 With FY26 RoE At 27%

Investec On KFin Tech
Buy Call, Target At Rs 1,100/Sh
Issuers Solutions Progressing Well (13% Of FY24 Revenues)
Domestic MF AUM Growth May Be Sluggish For The Quarter (69% Of FY24 Revenues)
Potential Acquisition To Expand International Foray
Vision To Become A Global Fund Administrator

Investec On IT
Prefer Zensar & KPIT Tech
IT Stocks Trading At Peak Premiums Over Nifty Despite Lower Growth
FY25 Benefited From Execution Of Large Cost Takeout Deals Won In The Prior Year
Deal Wins Have Weakened
There Might Be Lower Scope For Growth In Near-term
A Recovery In Discretionary Spending Even More Important
Consensus & Expectations Already Build In A Recovery In Discretionary Spending
Revenue Headwinds From AI Are Possibly A Year Or Two Away In View
Believe Risk Reward Is Unfavourable As Continue To See Potential For Marginal Results Downgrade

GS On IT
Improving Visibility Into CY25; Earnings Recovery To Continue; Buy Call On Infosys
Forecast 7% YoY Revenue Growth For Coverage In FY26
Growth To Be Driven By Strength In US Economy Including Sectors Such As BFSI, Consumer
Recent Positive Commentary From US Banks Support Our Constructive Stance On The Sector
Guidance From Accenture & Improving IT Spend Outlook Support Stance On The Sector

MS On Zinka Logistics
Initiate Underweight Call, Target At Rs 450/Sh
Co Has Built Niche & Competitive Moats In A Large Fragmented Mkt With Multiple Offerings
Co Turned Profitable With A Rapidly Expanding Margin Profile
Find Risk-Reward Unattractive With Share Price Up 105% Since Nov’24 Listing
Expect Steady State Adjusted EBITDA Margin Of 38% With Incremental Margin Stabilising At 60% By FY27
Valuation At 34x FY27 Adj EBITDA Is At Higher End Of Relevant Peers