Major Brokerages Unveil Stock Ratings and Investment Insights
In a series of recent analyst calls and reports, leading financial institutions including Nomura, UBS, Bernstein, JP Morgan, and Motilal Oswal have issued key ratings and target prices for several prominent Indian companies. These assessments provide a detailed outlook on strategic moves, growth trajectories, and market opportunities across sectors such as telecommunications, fintech, technology, and automotive.
Bharti Airtel: Strategic Investments and Progressive Policies
Nomura has assigned a buy rating to Bharti Airtel with a target price of Rs 2,300. Analysts who attended the company's investor call highlighted several critical takeaways. Bharti Airtel is committing Rs 20,000 crore into Airtel Money, with this investment to be phased gradually over the years, starting with 10-15% in the first year. Additionally, the company will adopt a progressive dividend policy as free cash flow generation accelerates.
Other strategic moves include Singtel potentially selling its 7% treasury shares in Bharti Airtel over the next few years as part of investment consolidation. Bharti Airtel is likely to increase its stake in Indus Towers from the current 51%, with board approval to purchase an additional 5%. The company clarified that the stake in British Telecom will remain with the promoter entity, with no plans for Bharti Airtel to acquire it. Furthermore, Bharti Airtel will consolidate its stake in Airtel Africa, currently at 63%, by buying a 16% stake from the promoter family.
Groww: Diversification Amid Slowing Growth
UBS initiated coverage of Billionbrains Garage Ventures, operating as Groww, with a neutral rating and a target price of Rs 185. Analysts believe the high-growth phase for Groww's broking business has concluded, projecting broking revenue to achieve a compounded annual growth rate of 17% from FY26 to FY28. To drive future growth, Groww is diversifying into non-broking segments such as Margin Trading Facility, wealth management, and credit by leveraging its platform.
The non-broking segment is expected to be a significant growth driver, with revenue forecasted to record a 59% CAGR during FY26-FY28. Analysts anticipate costs will normalize, enabling operating leverage and margin expansion in the coming years.
Eternal: Buying Opportunity After Correction
Bernstein has an outperform rating on Eternal with a target price of Rs 370. Analysts noted that heightened competitive intensity, slowing quick commerce growth, and AI-related questions on food delivery have led to a 20% price correction in recent weeks. This correction presents a favorable buying opportunity with a good risk-reward ratio over a 12-18 month period, as key risks are already priced in.
However, near-term growth and profit trajectory may retain some volatility over the next 2-3 quarters, depending on how competitive scenarios unfold in the market.
Dixon Technologies: PLI Scheme Impact on Margins
JP Morgan has an overweight rating on Dixon Technologies with a target price of Rs 13,700. Analysts highlighted that Mobile PLI 2.0 is expected to differ from the existing scheme. The market has assumed the PLI scheme would not be extended, potentially leading to a 50 basis points margin reduction in Dixon's mobile business from FY27. If the scheme is extended, Dixon could continue to enjoy a 50 basis points margin benefit, resulting in 12-16% earnings per share upgrades over FY27-FY28.
Hyundai Motors India: Growth Amid Margin Pressures
Motilal Oswal Securities maintained its buy rating on Hyundai Motors India with a target price of Rs 2,567. Analysts reported that the company's management indicated healthy retail demand across small cars and SUVs, with compact and micro-SUVs currently outperforming cars. Hyundai's new launch cycle is underway with the new Venue, and it plans to introduce 26 models by 2030.
Despite this growth, margins may face near-term pressure due to start-up costs associated with the Pune plant. Analysts believe improving product mix and localization will aid long-term expansion, expecting Hyundai Motor India to deliver an earnings CAGR of about 12% over FY25–FY28.
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