Brokerage Radar: Analysts positive about Zomato, Morgan Stanley cuts M&M Financial’s target price
Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes ICICI Prudential Life, M&M Financial Services, Zomato and more.
Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes ICICI Prudential Life, M&M Financial Services, Zomato and more.
ICICI Prudential Life Insurance Company
HSBC On ICICI Pru Life
Buy Call, Target At `850/Sh
Q2 VNB Was Higher Than Estimates
VNB Growth Has Bottomed And Should Grow At A Healthy +25% YoY In H2
Over Medium-term, Co Can Deliver Healthy Sustainable VNB Growth By Balancing Margin & Prem Growth
Jefferies On ICICI Pru Life
Buy Call, Target At `860/Sh
Q2 VNB Was Tad Below Estimates, Partly Due To Lagged Repricing Ahead Of Change In Surrender Norms
Premium Growth Of 21% Was Led By ULIPs And Annuity; Most Channels Grew Well
With Base Of Margin Normalising, VNB Growth Should Improve From Q3
See Limited Impact Of New Surrender Norms
EV Grew By 19% YoY, But Includes MTM Gains As Well
Mahindra and Mahindra Financial Services
Jefferies On M&M Fin
Hold Call, Target At `315/Sh
Q2 Profit Grew 57% YoY, Well Below Estimates Due To Higher Provision
Loan Growth Moderated
NIM Disappointed Due To Lower Yield, But Higher Fee Income Partly Cushioned Topline
Expect Loan Growth To Moderate To 17% In FY25 And NIM To Stay Rangebound
Drop In ECL Cover In H2 Can Help Co Lower Credit Cost & Lift RoA In FY25
Credit Costs Can Inch Up In FY26-27 And Cap RoA
Morgan Stanley On M&M Fin
Equal-Weight Call, Target Cut To `285/Sh
Q2 Profit Missed Estimates (Conservative) By 2% But Consensus By >20%
RoA Guidance Has Been Cut To 1.8-2% From An Aspirational 2.5% & Later A Plausible 2.2%
Risk-Adjusted Return Emergence Remains An Issue
Valuation Looks Full, H2FY25 Should See Seasonal Strength
Zomato
HSBC On Zomato
Buy Call, Target At `330/Sh
Q2 Food Numbers Were In-line, While Quick Commerce Performed Was Better-than-expectations
Margin Was Largely Stable QoQ, Due To Continued Invst In Quick Comm Capacity & Brand Building
Fund Raise To Provide Resources So Co Can Remain Aggressive In A Highly Competitive Market
Nomura On Zomato
Buy Call, Target At `320/Sh
Quick Commerce Remains On Fast Growth Lane
Food Delivery Business Maintains Steady Growth Path
To Prioritise Growth In Quick Commerce While Ensuring Neutral EBITDA In The Near-term
One 97 Communications
Jefferies On Paytm
Hold Call, Target At `700/Sh
Q2 EBITDA Losses Declined On Continued Cost Reduction (-13% QoQ) & A Recovering Topline
In-line With Mkt Practices, Paytm Has Begun DLG-Based Lending
Disbursal Ramp-up Could Accelerate EBITDA Breakeven
Risk Has Meaningfully Reduced With NPCI TPAP Approval
Maintain Hold Call, Valuations (3.1x Sep’26 EV/Sales) Capture Near-term Optimism
Bernstein On Paytm
Outperform Call, Target At `600/Sh
Q2 GMV & Merchant Loan Disbursals Were Key Positives
A Continued Decline In MTUs & Sequential Fall In Personal Loan Disbursals Were Key Negatives
Effort On Cost Control Was Also Visible With Indirect Expenses Registering Sharp Decline
Overall, See Q2 Numbers Decent, Showing Clear Improvement From Bottom Witnessed In Last Qtr
Nomura On Persistent Systems
Neutral Call, Target At `5,200/Sh
Q2 Saw Resilient Growth Driven By Strong Execution
Deal Wins Were Healthy
Q2 Revenue Growth Ahead Of Expectations
Margin To Improve In H2FY25 & Still Aiming For 200-300 bps Improvement In Long-term
Co Trading At 35.7x FY27 EPS
Nomura On Ambuja Cement
Buy Call, Target At `760/Sh
Co To Acquire 46.8% Stake In Orient Cement At Implied EV Of $114/t
Ambuja Further Strengthens Its Position In South; Plans To Double Acquired Capacity
Orient Cement Provides >250 mt Limestone Reserves In South India With >30 Years Life
Co Is Moving At A Rapid Pace Towards 140 mt Target
Negative For The Industry/South Market In The Mid-term; Prices To Remain Under Pressure
Jefferies On Can Fin Homes
Buy Call, Target At `1,020/Sh
Q2 Profit Was In-line With Est As Beat In NII (+7% Yoy) Was Offset By Tad Higher Opex
Loans Rose 10% YoY, In-line With Estimates, Led By 18% Disbursement Growth
Gross NPA Was Steady & Credit Cost Was In-Line With Estimates
HSBC On Varun Beverages
Buy Call, Target At `770/Sh
Reported Strong Q3 Operating Performance Driven By Volume Growth & Cost Efficiencies
Capacity Expansion, M&A & Debt Reduction Were Top Priorities For Capital Deployment Via Equity Issuance
Jefferies On SRF
Underperform Call, Target At `2,070/Sh
Very Weak Print In Q2 With Chemical Segment Driving The Miss
Mgmt Flagging Inventory Destocking Impacted Offtake Of Few Key Molecules In Specialty Chemicals
While Mgmt Guides For A Better H2, Note It Is The Seasonally Stronger Half
Refgas Remain Impacted By Elevated US Inventory And Falling Prices
Packaging Was Also Muted, Valuation Remains Stretched
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