Axis Cap On City Gas Co
Initiate Buy On Mahanagar Gas, Target Rs1,580/sh
Initiate Reduce On Gujarat Gas, Target Rs390/sh
Upgrade IGL To Buy, Target Rs224/sh
City Gas Distribution (CGD) Sector Should Benefit From Aggressive Expansion
Favorable CNG Economics Vs Petrol/Diesel
New Cng Model Launches Expanding Addressable Mkt To Approx 55% Of PV Industry Volume
Supportive Government Policies Prefer Cos With Higher Exposure To CNG Which Should See The Fastest Growth In The Value Chain
Price Hikes: None Since Q3; To Focus On Profit Expansion Through Value Engineering
MS On Voltas
Overweight Call, Target Rs1,556/sh
Room AC Biz Has Been Strong So Far In Q4 (Not Quantified)
Commercial AC: 15-18% Medium-Term CAGR
Q4 > Q3 For Commercial Refrigerators
Strong Momentum For Air Coolers
Strategy To Capture Higher Mkt Share Across Channels With Addition Of In-Shop Demonstrators
CLSA On Voltas
Hold Call, Target Rs1,375/sh
Co Indicated Encouraging Secondary Sales Ahead Of Peak Summer Season On A High Base
Mkt Share Losses Early This CY Have Been More Due To Seasonality & Geographical Presence
Co Expects To Continue To Grow Ahead Of The Industry
Focus Remains On Absolute Profit Growth Over Profitability
Expects To Maintain High, Single-digit Margin & To Absorb Cost Inflation Through Value Engg
Co Believes Compressor Availability Is Unlikely To Be A Challenge With Moderate Growth This Year
However, Resolution Of Certification Issues And Domestic Capacity Build-Up Will Be Crucial Going Ahead
Jefferies On IndiGo
Buy Call, Target Rs5,700/sh
IndiGo, During The Analyst Meet, Alluded To Strong Q4 On Pricing/PAX Growth
For FY26, Co Expects Early Double-digit Cap Growth, Similar To FY25
Expansion On Int’l Routes Is A Key Growth Driver Ahead
Co Eyes Tapping Growing Int’l Leisure/Corporate Demand
With Ballooning FCF, Mgmt Tgts Prudent Allocation To Maintain Balance Between Growth & External Risks
Nuvama On IndiGo
Hold Call;, Target Rs4,768/sh
Industry Pax Traffic To Double By FY30 To 510 m (242 m In FY25)
Indigo Expects Its Pax Traffic & Capacity To Grow In Early-Double Digits In FY26
Q4FY25 Is Likely To Be Better Than Earlier Guidance Due To Higher PRASK
Share Of International Askm Is Anticipated At 40% In FY30 (28% In FY25)
Co Boasts Among The Lowest Cask Globally Ex Fuel-And-Forex Of $337 (Oct’23–Sep’24)
Raising FY25–27 EPS By 8–13% On Positive Guidance
HSBC On PI Ind
Hold Call, Target Cut To Rs3,500 From Rs3,700/sh
Difficult Phase Continues As Exports Remain Muted
Sustained Weakness A Downside Risk To Valuation Multiples
Co Has Entered A Zone Of Uncertainty As Core Biz Remains Muted
New Businesses Take Time To Scale Up
Maintain Hold Amid Lack Of Triggers
Nomura On DLF
Neutral Call, Tgt Rs700/sh
Ready For Another Strong Year But Wait For A Better Entry Point
Expect Pre-Sales To Reach +Rs20,000 Cr In FY26 (+16% YoY)
Annuity Income At 12% CAGR & OCF At 15% CAGR Between FY25-FY27
Target Of Rs700 Is Based On SOTP, Valuing DLF’s medium Term Pipeline At Rs27,200 Cr
Unutilised Land Bank At Rs75,200 Cr
Rental Assets In DLF Dev Co & DLF’s Share In Rental Arm DCCDL At A Cumulative Rs43,600 Cr
Key Downside Risk: Slowdown In The NCR Market/ NRI Demand
Key Upside Risk: Stronger Than Expected Launches Or Price Appreciation
Nomura On Bajaj FInserv
Buy Call, Target Rs2,000/sh
Change In Shareholding Pattern Following The Exit Of Allianz
Mgmt Mentioned That Acqn Would Be Self-Funded Without External Borrowings
With Complete Control, Bajaj Finserv Plans To Streamline Decision-Making
Bajaj Finserv Plans To Enhance Branding, & Pursue New Growth Areas Such As Pensions
CLSA On ZEE Ent
Outperform Call, Target Rs170/sh
Stock At Rock Bottom 8x PE
Believe Advertising Revenue-led Growth Will Rerate Stock
Zee Is India’s No 2 TV Network & Is Ramping Up OTT/Zee5
Zee’s EBITDA Margin Has Widened By 9% From Lows & It Has Zero Debt/Rs1,700cr Cash
Even Assuming 6% YoY Ad Growth, It Would Deliver 22-33% EBITDA/Pat CAGRS In FY26-27
Zee’s Mkt Cap/Sales Of 1x Is At A 60-80% Discount To Reliance Disney JV & Sun TV
Believe Zee’s Stock Could Double Over Next 12-24 Months
Jefferies On Paytm
Hold Call, Target Rs850/sh
For FY25, Govt’s Incentives Of Rs1,500 Cr For Low-value UPI P2M Transaction Are Half Of Last Yr’s
Implies Incentives Falling From 20 bps To 6 bps
If Co’s Incentives Fall Proportionately, Adj EBITDA For FY25 May Be 50% Below Est
FY26-27 May Be 20-30% Lower; PBT Could Be 15% Lower In FY25
Will Watch Out For Switch To MDR-Based Charges For Large Merchants
Switch To MDR-Based Charges May Lift Profits & Improve Predictability
UBS on Consumer Durables
Adani Enterprises announced JV to enter into metal products, cables and wires
Competitive intensity for C&W sector continues to rise, second large serious player has entered C&W space
Capex plans for Adani in C&W are not known yet
This is negative sentiment-wise for incumbents in C&W segment (Polycab, KEI, Havells)
Macquarie on Uno Minda
O-P, TP Rs 1157
Has diversified revenue mix & wide-ranging components portfolio, which are medium-term +ves.
See upside rev potential from deeper OEM relationships, including opportunity with Korean PV OEMs & new products with existing OEMs
CLSA on Jubilant Food
Turkish Lira Depreciation Potential Risk For Co
Arm DP Eurasia Operates In Turkey, Azerbaijan & Georgia
Arm DP Eurasia Contributed 31% Group Sales In Q3
Debt Is At ₹1,230 Cr As Of Sept 2024
Estimate About 80% Debt To Be Payable From Turkish Cashflow
Lira Depreciation Would Lead To Additional Interest Cost Burden
YTD Turkish Lira Depreciation Of 8.5% Could Have 3.5-4% Impact On FY25 Consolidated PAT
Depreciation In Turkish Lira Could Also Impact Dividend Payments By DP Eurasia
