Brokerage Radar: Nomura downgrades Mahanagar Gas, Goldman Sachs lowers IndiGo's target

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes ICICI Bank, Mahanagar Gas, Interglobe Aviation and more.

Mahanagar Gas

Jefferies On Mahanagar Gas
Buy Call, Target Cut To `1,740/Sh
Q2 EBITDA Was In-line With Estimate
Volumes Came In 3% Ahead Of Estimates And EBITDA Margin Slightly Below
Expect Strong Volume Growth To Continue On Accelerated RO Additions
Upgrade FY25/26 Volume Assumptions By 4-7%
Cut FY25/26 PAT 9%/13%, Lower Multiple To 15x PE

Nomura On Mahanagar Gas
Downgrade To Reduce, Target At `1,250/Sh
Q2 Below Estimates; Near-term Outlook Weak & Change In Policy A Concern
Q2 Missed Estimates On Lower Margins, While Volume Growth Sustains At A Strong Clip
Management Remains Optimistic On Healthy Volume Growth Of 10% In FY25

ICICI Bank

CLSA On ICICI Bank
Outperform Call, Target At `1,600/Sh
Delivered Yet Another Steady Quarter
Balance sheet Growth Remained In Mid-teens, While NIM Moderated 5-10 bps Sequentially
PpOP Grew Faster Than NII, Driven By Operating Leverage
NII Is Expected To Play Out Over Course Of Year
Gross NPL Ratio Was Stable & Credit Costs Were Benign
Among Private Sector Banks This Makes Co & HDFC Bank Stand Out This Quarter.
Among Large Banks, ICICI Bank Has Highest Standard Asset Provisioning
Bank’s LDR Of 85% Is Comfortable, Lower Than Peers
Only Fee Income Was A Bit Tepid, Growing 13% YoY

Motilal Oswal On ICICI Bank
Buy Call, Target At `1,500/Sh
All-Round Performance In Q2; Solidifies Its Leadership Position
Asset Quality Improves Slightly; Cost Control Impressive
Business Growth Robust; NIM Moderates
Increase EPS Estimate By 2.8%/1.8% For FY25/FY26 & Est RoA/RoE Of 2.19%/17.4% In FY26

Nomura On ICICI Bank
Buy Call, Target Raised To `1,575/Sh
Flawless Quarter; A Cut Above The Rest
Strong Loan And Deposits Growth; Robust Asset Quality Performance
Raise FY25-27 EPS Est. By 2-3%, Factoring In Lower Opex & Slightly Lower Credit Cost

Interglobe Aviation

Kotak Institutional Equities On IndiGo
Buy Call, Target At `5,200/Sh
Sharp Miss In Q2 PBT Led By Groundings, Related Compensation, & Unexpected Fuel Inflation
Overhang Was Heightened Seasonality In Context Of Sharp Uptick In Demand/Supply In Prior Yr
Overall Demand Trends Remain Healthy
Modest Decline In TRASK On High YoY Base For Q3
Lower FY27 Estimate By 10%

Goldman Sachs On IndiGo
Buy Call, Target Cut To `4,800/Sh
Q2 EPS & PBT (Ex-FX) Was Below Estimates
Q2 ASK/RPK Were Largely In-line
Yields Were 2.5% Above Estimates, Driving A Revenue Beat
CASK Were Higher Than Estimates Driven By Higher Fuel And Higher Lease Expenses
Aircraft Groundings Were Stable At Mid-70s And Improving

Motilal Oswal On IDFC First Bank
Neutral Call, Target At `73/Sh
Q2 PpOP In-line; Elevated Provisioning Drags Earnings
Credit Cost Guidance Raised To 2.2-2.25%
Deposits Growth Robust; Margin Moderates 4 bps QoQ
Cut Earnings By 18%/5% For FY25/26 & Estimate FY26 RoA/RoE Of 1.0%/11.0%

CLSA On REC
Outperform Call, Target At `680/Sh
Q2 Net Profit Was Ahead Of Estimate, Mainly Due To Negative Credit Costs
ECL Provision Coverage On Stage 3 Was Down 3.4%, Driving -0.1% (Annualised) Credit Cost
Last Quarter Management Had Indicated Nagai Power & TRN Energy Were Closest To Resolution
Loan Growth Was Healthy, Led By Renewables, Infrastructure And Discom Segments
Maintain Loan Growth Estimate Of 16-17% Over Next Three Years

CLSA On CreditAccess
Downgrade To Hold, Target Cut To `910/Sh From `1,800/Sh
Q2 Net Profit Halved YoY/QoQ, Dragged Down By An Elevated 6.5% (Annualised) Credit Cost.
Management Trimmed Its Loan Growth Guidance & Raised Its Credit Cost Guidance
Deterioration In Delinquency Bucket Since Implementation Of New Guard Rails Has Been Dramatic

Citi On HPCL
Buy Call, Target At `420/Sh
Reported A Subdued Q2 With EBITDA Was Below Estimates
Miss In Q2 Was On Account Of A Multitude Of Factors
All The Factors Leading To Miss In Q2 May Reverse Course In H2
Large Inventory Losses In Both Refining & Marketing Should Not Recur
Weak Core GRMs Already Showing Signs Of Bottoming Out
Lower-than-expected Marketing Margin & Volumes & Sustained LPG Under Recoveries
Debt Also Saw An Unexpected Jump In Q2, Which Too Had An Element Of One-offs As Per Mgmt

Kotak Institutional Equities On Shriram Finance
Buy Call, Target `3,700/Sh
Amid Asset Quality Noise In Rest Of Sector, Continued To Deliver A Steady Performance
Investment Thesis Of An Overall Growth Trajectory Of 20%
In Light Of Of Risk In Sector, High Growth In MSME, Followed By Tractors, Remains Monitorable
Asset Quality Not Showing Any Concerns Currently

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