Brokerage Views: Morgan Stanley On RIL, Citi On Indian Chemicals And More

Top brokerages, from Citi Research to Morgan Stanley, have taken various stock calls on various stocks and sectors. The benchmark indices kicked off the week by surging to a fresh record closing level on Monday, led by gains in the automobile stocks. The market cap of BSE-listed firms crossed the Rs 400-lakh-crore mark, and the Bank Nifty also recorded the highest closing level of 48,581.7.

The NSE Nifty 50 ended 147.25 points, or 0.65%, higher at 22,660.95, and the S&P BSE Sensex rose 494.28 points, or 0.67%, to close at 74,742.5.

NDTV Profit is tracking what brokerages are putting out on specific stocks. Here are all the top calls you need to know about on Tuesday.

Morgan Stanley On Reliance Industries

Morgan Stanley retains 'overweight' rating on Reliance Industries Ltd. with target price Rs 3,046 apiece, implying a potential upside of 2.5 % from the previous close.
Multiple areas of multiple re-rating will take centre stage.
Investments slow, global fuel demand picks up, long-term concerns unwind.
Potential for re-rating across verticals — new energy, refining, chemicals and telecom.
Net debt and slower capital-expenditure intensity to be supportive of valuations in the current financial year.
New energy investments should be monetised from the end of 2024.
Telecom seen relative underperformance in revenue growth vs Bharti Airtel Ltd.
Estimates oil-to-chemical Ebitda to reach peak level, chemical Ebitda/tonne to rise 3–4% quarter-on-quarter.
Estimates 11% year-on-year Ebitda growth in telecom vertical, 11.5-million subscriber addition.

Citi Research on Indian Chemicals Sector

Expects most agrochemical producers to report year-on-year revenue decline in the fourth quarter, led by global destocking.
Revenue to improve quarter-on-quarter, in part aided by seasonality.
Expects UPL Ltd.'s March-quarter revenues to be down about 27% year-on-year.
Ebitda margin for UPL expected to improve to 9% vs nil in the third quarter.
Expects SRF Ltd.'s revenues to be down 8% due to lower refrigerant gas pricing.
Management guidance in PI Industries Ltd. for high-teen growth in the new financial year can be a positive trigger.

Nuvama on Transformers and Rectifiers

Nuvama Research retains 'buy' on Transformers and Rectifiers (India) Ltd. with a target price of Rs 575 per share.
Reported 3.5 times profit-after-tax growth with 18% sales growth and 640-basis-point margin expansion.
Order backlog at Rs 2,580 crore and order pipeline at Rs 17,000 crore.
Management guides for revenue of over Rs 2,000 crore and margins of 12.5–13%.
Expects 25% compound annual growth rate in new orders during fiscal 2024–27.
Valuations based on 25 times the fiscal 2027 earnings-per-share estimates, discounted to fiscal 2026.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On April 9

Jefferies Initiates Coverage on India Wealth Managers

Initiate coverage on 360 ONE and Nuvama with a 'buy' rating.
Wealth managers are well-placed to ride on economic growth and the financialisation of savings.
Leading players to benefit from strong inflows and operating efficiencies
Expect a 20–22% profit CAGR over FY24–27E.
The rise in share of trail fees (70–75% by FY27E) improves earning visibility.
Key risks are market cyclicity and adverse regulations.

Jefferies On Nuvama Wealth

Jefferies initiates coverage with 'buy' on Nuvama Wealth, with a price target of Rs 6,000 apiece, implying a potential upside of 18.8%.
The platform boasts diversification and a growing wealth franchise.
Management is investing in wealth franchise build-out (RM network to double over FY23–27E).
Expect an AUM and PBT CAGR of 22% and 20%, respectively, over FY24-27E.
A high base of IB can drag consolidated earnings (17% CAGR).
The valuation discount is driven by a lower mix of wealth / ARR.
Expect steady improvement in the business mix to drive re-rating over the medium term
Near-term upside can be limited after the recent run-up.p

Citi on Colgate Palmolive

Maintains a 'sell' rating and raises the target price to Rs 2,200 apiece from Rs 2,000 apiece earlier, implying a downside of 18%.
Raises their FY24–26E earnings estimates by 2-4%.
Sees downside risk to current valuations of 52x 1-year forward P/E
52x PE implies a 29% and 32% premium to its 5-year and 10-year average.

Citi On PI Industries

Citi retains 'buy' on PI Industries, with target price raised to Rs 4,500 apiece from Rs 4,100 apiece earlier. This implies an upside of 13%.
Opens 90 day positive catalyst watch
Expect PI to report 15% revenue growth vs guidance of 18-20% but outperforming peers
Management confident of achieving high teens growth in FY25 as well
Firm guidance to be key trigger.

Citi On Indian Consumer And Retail

Expects demand trends to remain subdued for consumer discretionary and retail companies (excluding jewellery).
Expects Kalyan Jewellers to report the highest year-on-year revenue growth (34%).
Bata India will report the lowest year-on-year revenue growth (2%).
Ex-jewellery demand is likely to remain weak.
Demand trends are likely to continue in Q4 FY24 with high ticket categories (jewellery).
Expects 23.6% YoY growth for jewellery companies (India, ex-bullion)
Expects 12.4% YoY growth for other retail companies (8.1% ex-Avenue Supermarts).

Motilal Oswal On Container Corp

The brokerage reiterated 'buy' with a target price of Rs 1,120 per share, implying an upside of 20% from its current market price.
Commissioning of a dedicated freight corridor to drive the containerised cargo movement.
Anticipate benefits from the shift in northern hinterland volumes from Gujarat ports to JNPT after DFC commissioning.
Expect domestic operations to scale up with the addition of new services.
Strategic initiatives will result in higher double-digit growth for domestic cargo.
Expect blended volumes to report a 10% CAGR during FY24–26.
Projects Ebitda margin to be 23-25% over FY24–26.

HSBC on Titan

The brokerage maintained 'buy' and raised the target price to Rs 4,300 per share (15% upside from the current market price).
Titan is to grow its jewellery business by a CAGR of 20% for the next five years.
The company is supported by aggressive network expansion.
Lab-grown diamonds may well be a large opportunity.
Doesn’t see much disruption to Titan with falling diamond prices.
Earnings are potentially set to double over the next four years.

Also Read: Titan Target Price Raised By HSBC On Robust Jewellery Momentum