Buy, sell, hold: 7 stocks analysts are watching out

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Jubilant Foodworks

With maintaining outperform rating on Jubilant Foodworks, with a target price at Rs 1,150, Credit Suisse says a 3.3 percent decline in same store sales growth was better than estimates and focus on closing non-performing stores is a positive move.

JPMorgan says focus on profitability is a welcome step, but in near-term uncertainty in demand remains. The brokerage house is overweight on the stock, with a target price at Rs 1,140.

Deutsche Bank has reiterated buy rating on the stock, with a target price at Rs 1,400 as same-store-sales growth trajectory is improving and new product pipeline is strong. Closure of underperforming stores is the practical approach, it feels. Margin is likely to have bottomed out, according to the brokerage house.

CLSA also retained its buy call on the stock with increased target price at Rs 1,250 (from Rs 1,100) as company seems to have changed track from ‘growth’ to ‘profitable growth’ and closure of six stores highlights management’s focus. It feels pause in price hikes to offer value is also a welcome step. Jubilant's Q3 was better than its subdued forecast but same-store-sales-growth of negative 3.3 percent is disappointing in the context of the 5 percent of Westlife, it says.

Morgan Stanley also says earnings are ahead of estimates and there was impressive cost control. It is best placed to capitalise on urban consumption recovery, it feels. The research firm is overweight on the Stock, with a target price at Rs 1,230.

However, Nomura feels challenges continue to remain for the company. Jubilant Foodworks is taking steps in the right direction but will take time before results show, it says while maintaining neutral rating on the stock, with a target price at Rs 855.

Citi advised selling the stock but revised target upward to Rs 810 from Rs 790. It feels there will be downside risks to FY17 forecasts. "Revenue forecasts have been pared 1-4 percent over FY17-19 and EPS estimates for FY17/18 have been pared 2-3 percent," it says.

ACC, Ambuja Cements

CLSA says consolidation of both companies will drive savings & help both firms. Merger is long overdue and makes economic sense, it feels.

ACC should merge into Ambuja Cements. He does not see any anti-trust hurdle. Merged entity could easily see around 10 percent EBITDA upgrade, according to CLSA.

Pharma

Credit Suisse says Dr Reddy's Labs and Lupin could have high impact of border tax while Cipla is the least impacted. Risk could be high in near-term, it feels.

For Dr Reddy's Labs, more than 25 percent of FY18 profits are at risk and for Lupin, 20 percent of FY18 profits are at risk, it says.

The research firm feels Cipla would have the lowest impact at 7 percent of profits and Sun Pharma's profits could be impacted by 12 percent.