Brokerage Views: Nuvama On Inox Wind, Nomura On Oil India And More

Brokerages from Nuvama to Citi have companies like Inox Wind Ltd., and Balkrishna Industries Ltd. on their radar following the release of their first quarter results. Emkay initiated coverage on Adani Green Energy, and downgraded Birla Corp.

Inox Wind swung to profit in the first quarter of fiscal 2025, while operating profit and margin saw growth as well. Tyre-maker Balkrishna Industries Ltd.’s consolidated net profit rose 47.5% in the April-June period.

NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Monday.

Nuvama On Inox Wind

• Nuvama maintained 'buy' with a target price of Rs 201 per share, implying a 15.5% upside from the previous close.

• First quarter margins expanded to 21.3% on operating leverage from execution ramp-up.

• Management expects margins to moderate to 16-17%.

• First-quarter execution ramped up to 140 megawatt, driving an 83% YoY surge in top line.

• A robust order book of 2.9 GW gives revenue visibility over 24 months.

• The brokerage tweaked the FY25-27 margins upwards.

Inox Wind Wins 201 MW Order For Latest 3 MW Turbine Generators

Emkay Initiates 'Buy' On Adani Green

• The brokerage initiated coverage with a target price of Rs 2,550 per share, which implies an upside of 43% from the previous close.

• Expects firm's renewable energy capacity to see 30% compound annual growth rate during fiscals 2024-2030.

• Improving capacity utilisation factor to drive power sales compound annual growth rate during fiscals 2024-2030, it said.

• Expects Ebitda and adjacent net profit compound annual growth rate of 38% and 61% during fiscals 2024-2030.

• Net debt to Ebitda ratio estimated to fall from 7.4 times to 3.6 times.

• Concentrated development in high-yield assets to help with capex-opex efficiency, boosting cost leadership.

Stock Market Live: Nifty, Sensex Off High As RIL, NTPC Drag

Nomura On Oil India

• Nomura maintained 'neutral' at a price target of Rs 417 per share, implying a 31% downside from the previous close.

• Expect volume CAGR of 6% for oil, 12% for gas over fiscals 2024-2026.

• Management maintains 4 million tonnes of oil production and 5 billion cubic meter of gas production guidance by fiscal 2026.

• The first quarter results were a tad below brokerage estimates on higher operating expenses.

• Lower Ebitda, net income on sharp decline in profitability for Numaligarh Refinery, refining margins.

Citi On Balkrishna Industries

• The brokerage maintained 'sell' and revised its target price to Rs 2,150 per share from Rs 2,300 earlier. This implies a downside of 29% from the previous close.

• Management outlook is cautious that year-on-year volume growth would be minor in FY25.

• Challenges remain on demand due to weak macro in North America, and geopolitical disruptions in key global markets.

• Cost inflation is also likely to impede margins.

• Raw material costs and freight costs are expected to rise.

• First quarter volume beat could also reflect some increase in channel inventory.

• It cut the earnings estimates by 5-10% over FY25-27E.

Balkrishna Industries Q1 Result: Profit Up Nearly 48%, Board Declares Rs 4 Dividend

Motilal Oswal On Siemens

• The brokerage maintained 'buy' with a revised target price of Rs 7,800 per share from Rs 8,600 apiece earlier.

• Third quarter results weaker than estimates on revenue, Ebitda and profit.

• Performance impacted due to slower-than-expected execution.

• Weak margins in mobility and digital industries weighed in.

• The brokerage cut estimates to factor in lower execution and margins.

Nuvama On Calcutta Electric Supply Corp.

• Nuvama maintained 'reduce' at a price target of Rs 154 per share, implying a 12.5% downside from the previous close.

• First quarter net profit in-line with brokerage estimates.

• The stock has rallied two times since November 2023 on 3.25 gigawatt capex plans, and 10,500-tonne green hydrogen plans.

• Generation businesses were strong in first quarter with high plant load factors.

• Muted distribution business growth; Noida, Rajasthan distribution companies registered fall in profits.

• Finds 4% downside to bull case.

Emkay On Birla Corp.

• Emkay downgraded to 'add' at a price target of Rs 1,550 per share, implying a 14.2% upside from the previous close.

• Ebitda for the quarter ended June stood 27-28% lower than estimates.

• Expects volumes CAGR of 4.5% over fiscals 2024 to 2027.

• Cut Ebitda estimates of fiscal 2026 by 19%-30%.

• Earnings missed estimates on lower-than-expected blended realisations.

• Management expects cement prices to remain subdued till the third quarter of the fiscal.

• Expects company to lose market share with high utilisation and limited incremental capacity additions.

Birla Corp Recommends Dividend Of Rs 10 Per Share

Goldman Sachs On CE Infosystems

• Goldman Sachs maintained 'buy' at a price target of Rs 2,900 per share, implying a 31% upside from the previous close.

• Internet of Things business saw a slow start to the current fiscal, due to pre election deferral of fleet business to the second to fourth quarters.

• Historically, one of the four quarters is soft, and analysts expect softness to even out as demand deferrals would filter in the course of the fiscal.

• Catalysts include pickup in the IoT led business, Hyundai/Kia deal win and EV led N CASE adoption.

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