Brokerage Radar: Nomura initiates 'Buy' call on Tata Power, JSW Energy; CLSA upgrades M&M

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Nykaa, Tata Motors, Mahindra & Mahindra and more.

FSN E-Commerce Ventures (Nykaa)

Citi On Nykaa
Sell Call, Target At `165/Sh
Co Reported Strong Growth Trends In BPC Vertical With Revenue Growth In “Mid-twenties”
Revenue Growth Indicates Slight QoQ Acceleration Likely Aided By Uptick In Marketing Spends
Fashion Vertical Continues To See Sluggish Trends (In-line With The Broader Fashion Industry)
Based On Mgmt Commentary, Expect Revenue Growth At 25% YoY
Expect Contribution/EBITDA Growth At 25%/47% YoY, With EBITDA Margin Up 100 bps QoQ To 6.3%

Nomura On Nykaa
Neutral Call, Target At `203/Sh
Q2 Business Update Shows Growth Improvement On Track, Led By BPC
For Q2 Results, Expect Cons Revenue Growth Of 26% YoY & EBITDA Margin At 6%, Up 50 bps QoQ
Q2 Results Expectations Are Still Lower Compared To FY25 Expectation Of 29% YoY Revenue

Nomura On Power Utilities
Initiate Buy Call On Tata Power, Target `560/Sh
Expect Tata Power To Deliver A Robust 16% EBITDA CAGR Over FY24-27
EBITDA CAGR To Be Driven By A 2x Increase In RE Capacity, Robust Delivery On Solar EPC Orderbook
Initiate Buy Call On JSW Energy, Target `885/Sh
Expect JSW Energy To Deliver Solid 38% EBITDA CAGR Over FY24-27
JSW Energy’s EBITDA CAGR To Be Underpinned By Over 2x Increase In Operational Capacity
See Significant Opportunities Across Entire Energy Value Chain
Expect India’s Energy Demand To Register A 7% CAGR Over FY24-FY30
7% CAGR Over FY24-FY30 Is Higher Than Its Historical Demand CAGR Of 5%
Expect Upside To Estimates Underpinned By Developments In Data Centers & EV Penetration

Nomura On Tata Motors
Buy Call, Target At `1,303/Sh
JLR Reports 3%/10% YoY Decrease In Retail & Wholesales Volumes For Q2FY25
Estimate Annual Sales Of 4.03 Lakh (Flat YoY) For JLR In FY25
Annual Sales Estimates Imply 3% YoY Growth In H2
Estimate JLR’s Q2 EBIT Margin At 5.8% Vs Reported EBIT Margin Of 8.9% (QoQ)
Est JLR’s EBIT Margin At 8.3% For FY25 Vs Guidance Of =>8.5%

HSBC On Cable & Wire OEMs
Retain Buy Call On Polycab, Target Raised To `7,800/Sh
Retain Hold Call On KEI Industries, Target Raised To `4,350/Sh
Retain Hold Call On R R Kabel, Target At `1,900/Sh
C&W Demand Continues To Be Strong With Growth Tailwinds Across The Segments
High Base & Copper Volatility To Impact EBITDA Margin Of Polycab & R R Kabel Respectively

HSBC On Zomato
Buy Call, Target Raised To `330/Sh From `260/Sh
Fast Delivery Competitive Intensity Seems To Be Stabilising
Co Has Scope To Improve Take Rates
In Quick Commerce, Swiggy Is Struggling To Keep Pace With BlinkIt
Swiggy Has Significant Scope To Expand Take Rates And Margins
Raise Estimates For Quick Commerce & Reflect Zomato’s Plan For Its Going Out Biz

CLSA On M&M
Upgrade To Outperform, Target `3,400/Sh
Profitable Growth In SUVs And Rising RoE To Drive Sustainable Re-rating
Led By XUV 3X0, Thar Roxx, And Upcoming EV Models, Expect Co To Spruce Up Its SUV Scale
Segmental EBIT Margin To Remain At 9% For FY26-27, Leaving Scope For Consensus Upgrades
Expect Domestic Tractor Ind To Revive From FY26, With Favourable Reservoir Levels Being Key Driver
With RoE At 20%+ Since FY24, Co Is Trading At 3% FY26 FCF Yield, Despite Capex At `7,000 Cr P.A.
Raise FY25-26 EPS By 5% Each

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