Brokerage Radar: Petronet LNG gets mixed views, United Spirits sees upgrade in target price

Stock Market Trend

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Petronet LNG, United Spirits, Tata Motors, and other stocks.
Petronet LNG

Nomura On Petronet LNG
Upgrade To Buy, Target `405/Sh From `300/Sh
Robust Q1 Above Estimate Results On Higher Volumes & Margin
Q1 EBITDA Of `156 Cr Increased A Sharp 47% QoQ & 29% Above Estimates
Reported Margin On Spot Volumes Jumped To $7.4/mmBtu Vs Est Of $2.3/mmBtu
Spot Margin Was Still Above Estimates At $3/MmBtu
Dahej Terminal Expansion Project On Track To Complete In FY25
Raise FY25F/26 EPS By 5%/8%

CLSA On Petronet LNG
Underperform Call, Target `250/Sh
Q1 Profit Of 24% Above Est On Large Inventory Gain & Higher-than-expected Other Income
Volumes At Both Dahej & Kochi Missed But Higher Trading Gains Resulted In An In-line EBITDA
LNG Consumption In Q1 Rose 27% QoQ, Led By Jump In Heatwave-Driven Demand
Post Q1, Gas Demand From The Power Sector Has Come Off Notably
Even Inventory Gains Could See Reversal If International Gas Prices See A Cool-off Hereon
With This Seasonal Peak In LNG Demand Behind, Q1 May Prove To Be Interim Peak In Vol & Profit

United Spirits

I-SEC On USL
Add Call, Target Raised To `1,480/Sh
Q1 Revenue Growth Of 8% YoY With 3% YoY Volume Growth Was A Good Performance
Double-digit Rev Growth In P&A Segment While Popular Segment Declined By 3% YoY
Premiumisation Trend Continued Though At A Moderate Level
Management Maintained Its Guidance Of Double-digit Revenue Growth In FY25
Management Guided H2FY25 Growth To Be Better Than H1FY25
H2FY25 Growth To Be Driven By Improvement In Demand Environment
H2FY25 Growth To Be Driven By Scale-up Of Renovations And Innovations
Underlying Gross And Operating Margins Saw A Strong Expansion Led By Cost Savings

Nuvama On USL
Upgrade To Buy, Target Raised To `1,630/Sh
Margin OPF, Huge Headroom In New Prem Categories & Upcoming Wedding/Festive Season
Raise FY25E/26 EPS By 5.3%/6.5% & Target PE From 50x To 60x

MS On JSPL
Underweight Call, Target `655/Sh
Q1 Standalone EBITDA Slightly Above Est But Missed Consensus
Q1 Volumes Were Higher Than Expected
Adjusted For Volumes, EBITDA Was Lower Than Estimates
Realisations Were Weaker, Partially Offset By Better Show On ‘Other’ Opex
Some Postponement In Project Execution Timelines – Execution Is Key

MS On SRF
Equal-Weight Call, Target `2,115/Sh
Q1 Results Showed Co Had A Weak Start To Fiscal With Sustained Agrochemical Uncertainty
Q1 Showed Intensifying Competitive Pressures
Structural Changes To Refrigerant Gas Consumption Patterns Implies More Bumpiness
Specialty Chemicals Guidance Unchanged, But Not Without Downside Risks
Traction Witnessed In Recent Launches, Legacy Products Not Out Of The Woods
Customer Sentiment Across Specialty Chemicals Remains Subdued

Nomura On Tata Motors
Upgrade To Buy, Target Raised To `1,294/Sh
JLR’s Execution Can Lead To Significant Upsides; Demerger May Unlock Value For CVs
Raise Target Multiple For JLR To 3.5x EV/EBITDA (From 2.75x) Given Potential Upsides
EBIT Margin Can Rise 8.5% In FY25 (7.8% Earlier) To 10.1% By FY27
EBIT Margin Can Have Further Potential To Rise To 11- 12% By FY30
Growth Should Be Supported By The Rundown Of Jaguar ICE, Success Of New Jaguar EVs
Stock Is Currently Trading At 5.4x FY26 EV-EBITDA
Net Debt Of `1,600 Cr (Nearly 44/Sh) In FY24 May Move To Net Cash Of `57/`140/Sh By FY26/27
Key Downside Risks Are Sharp Drop In Demand In China/EU And Rising Incentives

Nomura On SBI Life
Buy Call, Target Raised To `1,835/Sh
Q1 Results Showed Stable Quarter
Q1 Total/Individual APE Growth Of 20%/23% YoY Vs 17%/9% In Q4
For Comparison, Total APE Growth For ICICI Pru/HDFC Life Was Higher At 34%/23% YoY
VNB Margin Declined Nearly 210 bps YoY, Leading To Lower VNB Growth Of 12% YoY

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