Brokerage Radar: SBI gets mixed views, ITC bags overweight ratings, experts reiterate bullishness on Bharti Airtel

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Bharti Airtel, ITC, Ramco Cements and more.

UBS On Aurobindo Pharma
Sell Call, Target `1,333/sh
US Oral Revenues Now Close To $300 m A Quarter
Q3 In-Line On Growth & Margin; Outlook Key For Penicillin Ramp-Up
Net Debt Reduced Sequentially From $133 m To $84 m
On CMO Capacity For Merck, Co Has Started Civil Work
Co Plans To Commission CMO Capacity In 2026, First Supplies Expected In 2028
On Biosimilars, Three Product Launches Are Planned In July Quarter
Two More Product Submissions Are Planned In 2025

Citi On Indus Tower
Buy Call, Target `490/sh
Acquires 16.1k Towers From Airtel & Hexacom For UP To `2.1m/Tower)
View Transaction Favourably
Acquisition Would Help Improve Co’s Capital Structure
Acquisition Would Optimise Its B/S Given Negligible Net Debt As Of Dec’24
Believe This Is Prudent Allocation Of Cap, Being Within Co’s Core Area Of Ops
Should Not Have Any Implications For Potential Dividend Payout
Acquisition Will Be Entirely Debt-Funded
Continue To Forecast `18/Sh Dividend With 4q Results
Prima Facie, Implied Valuation Of 6.5x EV/EBITDA Does Not Appear Expensive

Jefferies On BSE
Hold Call, Target `5,250/sh
Settlement Guarantee Fund Drags Earnings
BSE's Q3 Ops EBITDA Expanded Led By Top-Line Growth
Improvement In Margins Led By Higher Options Segment Margin & Lower Opex
SGF Contribution Dragged Earnings & Mgmt Expects Inc Demand To Be Lower
Higher Than Expected Options ADTO Offsets SGF Impact
Cut Est By 3-6%

GS On BSE
Neutral Call, Target `5,650/sh
Q3 EPS Below Est On Materially Higher Contribution To Settlement Guarantee Fund
Higher contribution was triggered by an updated regulatory assessment
Rev 7% ahead of Est led by higher-than-expected transaction charges, listing fee
Mgmt Focus Largely Was On Raised Settlement Fund Contribution

HSBC On SBI
Hold Call, Target Cut To `800 From `880/sh
Q3 Miss On Loan Growth, NIMs & Cost Ratios
Asset Quality Performance Was Healthy
See Muted EPS Growth Over FY25-27 As Higher NIM Pressure Continues
Cut FY25-27 EPS Est By 1.5-5.2%

MS On SBI
Equal-weight Call, Target `865/sh
Asset Quality Remains Strong
Core PPoP Margin Progression Remains Under Pressure
NIMs Declined By 13 bps QoQ & Drove 3% NII Miss
Credit Growth Remains Strong At 14% YoY
Credit Continues To Grow Faster Than Deposits Given Better Liquidity Starting Point

Nomura On SBI
Buy Call, Target `1,000/sh
Mixed Quarter, Soft NIMs, Robust Loan Growth & Asset Quality
Strong RoE Outlook, Valuations Attractive
Soft NIMs & Fee Income Led To Core-PPoP Miss; Lower Credit Costs Aids PAT

Bernstein On SBI
Market Perform, Target `900/sh
Margin Pressure Drives Down RoA To 1% Despite Stable Asset Quality
Loan Growth Was Healthy At 14%
Deposit Growth Remained Weak & Driven By Term Deposits
Asset Quality Improves Further
NIM Declines While NOI Normalises

CLSA On SBI
Outperform Call, Target `1,050/sh
Good Performance On Asset Quality But NIM Compressed
Loan Growth Moderates In-line With System
Decline In NIM Slightly Disappointing But Asset Quality Remains Intact
Deposit Growth Of 10% Was Not Bad But Is Uninspiring
Mgmt Tgts 10-11% YoY Deposit Growth In FY25
It Lowered Deposit Growth Tgt From 11-12% in Q2FY25

MS On Britannia
Equal-weight Call, Target `5,157/sh
Q3 Beat On Volume Growth & In-line Top Line
EBITDA Margin Beat Was A Result Of Lower Employee & Other Expenses
Focus States Grew 2.6x, Outperforming Other Regions
Dairy Drinks, Croissants & Wafers Saw Double-Digit Growth

MS On Bharti Airtel
Equal-weight Call, Target `1,650/sh
India Biz Revenue (Excluding Passive Infrastructure) Was In-line With Est
EBITDA Beat Est By 2%
India Net Debt (Excluding Lease Liabilities & Indus Towers) Narrowed By Almost $1bn QoQ
This Reflected Solid FCF Generation In Q3FY25
Steady Growth In Subscribers
ARPU In India Mobile Biz, Along With Sharp Margin Improvement QoQ

HSBC On Bharti Airtel
Buy Call, Target `1,940/sh
Growth Levers Are Intact
Rising Mobile ARPU, Expanding Home Broadband Subs, Rising FCF, & Growth In Dividends

CLSA On Bharti AirtelOutperform Call, Target `1,860/sh
Q3 India Mobile Revenue/EBITDA Up 21%-30% YoY & Indus Consolidation
ARPU Was Up 5% QoQ & 18% YoY & Now 21% Higher Than Reliance Jio’s
Bharti Even Gained 4.9 M Subscribers Versus A 2.9 M Loss Previous Quarter.
Bharti’s Q3 Consolidated FCF After Leases/Capex Were Strong

Nomura On Ramco Cement
Buy Call, Target `1,000/sh
Q3 Lower-than-expected Volume Growth Leads To EBITDA Miss
Blended EBITDA/t Of Down 8% QoQ, Missed Est By 20%
FY26 Capex Guidance Maintained At `1,200 Cr
Management Confident To Reach 30mt By FY26
Net Debt/EBITDA Deteriorated To 3.6x Vs 3.2x In Q2FY25

Jefferies On Ramco Cement
Hold Call, Target `845/sh
Q3 EBITDA Below On Weak Pricing, Even As Co Reported Vol Beat At 9% YoY Growth
Net Debt Moderated QoQ
Believe Region Px Will Continue To Remain Impacted As Acquired Capacities Ramp
Has Also Weighed On Co’s RoC\E Profile/Profitability
Trim Fy25 Ebitda EstBy 4%

CLSA On Ramco Cement
Underperform Call, Target Cut To `795 From `855/sh
Q3 EBITDA Was Below Est, On Weak ASP & Higher Costs
Unlike Its Peers, Its Volumes Fell Attributed To Monsoons
EBITDA/t Fell 8% QoQ, Dragged By Higher RM Costs And Weaker Prices
Net Debt Reduction Was Aided By Monetisation Of Non-Core Assets
Co Intends To Get To 30 mt Capacity By End-FY26

MS On ITC
Overweight Call, Target `578/sh
Topline Was Better Across Segments, Barring Agri
EBITDA Was Weak Across With The Exception Of Agri
Good Growth In Cigarettes Was A Key Positive Surprise
Acquisition Announced In The Fresh & Chilled Deli Meats & Ready To Cook Category

JPMorgan On ITC
Overweight Call, Target `505/sh
Mixed Q3, In-line Revenue But Margins A Tad Soft
Expanding Food Play With Prasuma Acquisition
Valuations Remain Accommodative, At 25x FY26 P/E & 3%+ Dividend Yield
Cigarettes -Volume Led Revenue Growth; RM Inflation Weighs On Margins
Other FMCG-Subdued Margins; Mixed Revenue Performance
Hotels & Agri Do Well; Paper Margin Hit A New Low

Jefferies On Trent
Hold Call, Target `5,800/sh
For Second Qtr In A Row, Co Reported Just In-Line Earnings, Revenues Missed Est
Fashion LFL Was At HSD Even As Co Continues To Expand Stores Smartly
Despite Some Investor Concerns, Reported EBITDA Margin Were Largely Maintained
Stock Surprisingly Corrected 8% Post Results
Stk Corrected Probably As Earning Upgrade Cycle Seems To Have Paused & Valn Is Not Cheap

MS On Trent
Overweight Call, Target `8,032/sh
Slight Topline Miss Was Led By Slightly Weak Fashion Topline
Fashion LFL Growth Was High Single-digit
On A Five-Year CAGR Basis, Revenue Increased 39% In Vs 38% QoQ

Bernstein On Trent
Outperform Call, Target Cut To `6,900 From `8,100/sh
Q3 A Mixed Bag; Stk Down By 8% Yesterday , Think This Is An Over-Reaction
Store Addition Pick-up Is Key Positive
Revenue Growth & Margins Are Positive
Same-store-sales growth Key Disappointment & Debate

Citi On Trent
Buy Call, Target Cut To `7,800 From `9,350/sh
Q3 Operational Performance Remained Strong
Q3 Witnessed Pick-Up In Pace Of Store Expansion
LFL Growth Moderated To High-Single-Digits
LFL Moderation Is Led By Further Slowdown In Discretionary Consumption
Trading at 42x FY27E EV/EBITDA vs Titan/DMart at 36x

MS On Apollo Tyres
Equal-weight Call, Target `515/sh
Consolidated EBITDA Was Broadly In-Line
EU Revenue Of Was 14% Above Estimate
EBIT Was Ahead Of Est, Standalone Biz EBITDA Below Est

HSBC On Power Grid
Reduce Call, Target `270/sh
Reported Profit Was Disappointing
Capex Guidance Increased & New Wins Continue At Expected Pace
Risk Of Overestimation Of Capex Intensity, Commissioning Timelines
Risk Of Poor Project Profitability Yet To Play Out

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