Nomura On Reliance Ind
Buy Call, Target Rs 3,600
Focused On Growth; Co To Double In The Next 5-7 Years
Launch Of Jio Brain And Jio Cloud To Lead The AI Integration Journey
See Robust Growth Across Segments Driving 3-year EBITDA CAGR Of 13%
EBITDA CAGR Will Further Be Boosted By A Sharp Increase In FCF Generation
EBITDA CAGR Will Further Be Boosted By Sharp Decline In Net Debt Levels
Jefferies on Reliance Ind
Buy Call, Target Rs 3,500
AGM Focused On Jio, With Traction In Airfiber, Foray Into Data Center
Co Expects Retail To Emerge From Tough Patch To Deliver Doubling Of Rev/EBITDA In 3-4 Yrs
Doubling Of Rev/EBITDA In 3-4 Yrs For Retail Is Ahead Of Our Estimate
New Energy Commissioning Could See Delays That Push Out Value Discovery To FY27
Board Will Consider A Bonus Issue
CLSA on Reliance Ind
Outperform Call, Target Rs 3,300
Co Targets To Double Its Size In The Next Six Years; No Hints About IPO For Jio Or Retail
Jio Aims To Add 1 m Airfiber Subscribers Every Month
Prioritising Investment Across O2C And New Energy Verticals
Macquarie on Reliance Ind
Neutral Call, Target Rs 2,750
New Energy The New Growth Engine, AI, Disney+, Bonus Shares
New Energy Division To Deliver Cash Flows That Are Less Cyclical
Potential Earning Capacity In Next 5-7 Yrs Similar To Existing O2C Business
Jio & Retail Targetting To Double Revenue And EBITDA In Next 3-4 Years
Jio Cinema Growth To Be Enhanced By Merger With Disney+ Hotstar
JioMart Hyperlocal Delivery With 1,300 Smart Points Noted As A Competitive Edge
Citi on Bharti Hexacom
Initiate Buy, Target Rs 1,405
Pure-Play Regional Telecom Operator With Healthy Balancesheet
Forecast A 3-Yr EBITDA CAGR Of 26% Vs 20%/22% For Bharti’s India/Mobile Ops & 24% For Voda Idea
See Net Debt/EBITDA Declining To 0.9/0.3x By FY26/27
Declining Net Debt/EBITDA Led By Strong FCF Generation
Declining Net Debt/EBITDA Opens Up Room For Upside To Payouts
Nomura on Lupin
Buy Call, Target Raised To Rs 2,427
Expect Improvement In Growth & Profitability Across Key Mkts, Likely To Attract Premium To Peers
US Generics Present Strong Support To Near-term Earnings
Co Has Gained Traction With A Few Complex Injectable Filings
Few Complex Injectable Filings Likely To Be Commercialised Over Next Two Years
There Are Specific Litigation-Dependent Upsides That Can Further Support Near-Term Earnings
Expect Narrative On US Prospects To Dominate Downside Risk In Specific Products Like Albuterol MDI
Factor In Higher Rev Contribution From Mirabegron In FY25 & Tolvaptan In FY26/27 Vs Earlier Est
Revise FY25/26 EPS Upwards By 28%/54%
MS on OMCs
Overweight Call On IOC, Target Raised To Rs 205/Sh
Overweight Call On BPCL, Target Raised To Rs 410/Sh
Overweight Call On HPCL, Target Raised To Rs 506/Sh
Global Tailwinds From Oversupplied Oil Markets Point To The Next Leg Of Outperformance
Gas Taking Market Share From Diesel In China Points To The Next Leg Of Outperformance
Domestic Tailwinds Of Strong Fuel Demand, Improving FCF Point To Next Leg Of Outperformance
HPCL Is Key Overweight, As It Exits An Investment Cycle, Followed By BPCL
Bernstein on Telecom
Outperform Call On Bharti Airtel
Target Raised To Rs 1,740 From 1,600
Telecom Has Seen A Favorable Market Structure Led By Consolidation Over Years
Strong Players – Jio & Bharti Airtel Continue To Gain Share With Jio (45%) & Bharti (37%) Rev Sh
Expect Market To Consolidate Further, As VI (Not Covered) Subscriber Churn Remains High
Jio Is On Path To Reach Nearly 500 Million Subscribers And A 50% Share
CITI on UPL
Buy, TP Rs 640
Co’s guidance of 4-8% rev growth & >50% EBITDA growth in FY25 does not factor in any improvement in pricing vs 4QFY24 level
With global destocking nearing completion, gross/contribution margins off trough believe a rerating is likely
Jefferies on Real Estate
Transient volume weakness
Resi markets slowed in June-July 2024 after a strong April-May; though vols in top 7 cities are still +5% FYTD.
Low inventory levels suggest that overall market remains healthy
Prefer Lodha, GPL, DLF, Sunteck
Macquarie on 2Ws
Growth on fast track, TVS top pick
Teens 2W industry volume growth in FY25E.
TVS’ diversified segment exposure, new E2W launches, & margin upside pose upside earnings risk
Macquarie on USL
U-P, TP Rs 1100
United Spirits saw another qtr of stronger YoY sales growth in prestige segment vs Pernod India albeit weaker than local peer, Radico Khaitan
While USL market share gains are encouraging, guided moderation in sales momentum in 2Q makes us cautious
HSBC on Maruti
Buy, TP Rs 14500
PV demand weakness is visible in increased inventory & discounting across OEMs and models
Not very optimistic for festive season this year & hence cut FY25/26 volume estimates for MSIL
However, stay Buy due to undemanding vals