Brokerage View: Citi On TCS, Infosys; Emkay On Mamaearth And More

Top brokerages, from Citi Research to Motilal Oswal Financial Services Ltd., have taken interesting stock calls on a variety of sectors on Tuesday.

Citi has cut the target price of information and technology stocks, while Emkay Global Financial Services Ltd. has initiated coverage on Honasa Consumer Ltd., the promoter of Mamaearth.

India's benchmark indices extended gains to the third day to start FY25 by touching a fresh record high as shares of HDFC Bank Ltd., Larsen & Toubro Ltd., and Tata Steel Ltd. rose.

The NSE Nifty closed 135.10 points, or 0.61%, higher at 22,462.00, and the S&P BSE Sensex gained 363.20 points, or 0.49%, to end at 74,014.55.

We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Tuesday morning.

• Citi Research maintains 'sell' on Tata Technologies Ltd. with a revised target price of Rs 920 apiece from Rs 1,000 per share.

• Revised FY24E-26E estimates by 2-4% on operational parameters

• Assigns 40 times multiple, given moderating tech spends in automotive vertical

• Citi Research maintains 'sell' on Tata Consultancy Services Ltd. with target price reduced to Rs 3,500 apiece from Rs 3,635 apiece.

• Revised FY24E-26E estimates marginally on operational parameters.

• Assigns multiple of 26x (vs 27x) given concerns on demand recovery pace.

• Citi Research has maintained a 'sell' rating on Wipro Ltd.

• Price target was cut to Rs 440 apiece from Rs 470 apiece earlier.

• Revised FY24E-26E estimates by 0-1% on operational parameters

• Assign multiple of 18x (vs 19x) given concerns on demand recovery pace

• Citi maintains 'sell' on Mphasis Ltd with a revised target price of Rs 2,255.

• Revise FY24e-26e estimates by 0-4% on changes in operational parameters.

• Assigns multiple of 24x (vs 26x Sep’25) given concerns on pace of demand recovery

• Citi maintains 'sell' on Persistent Systems Ltd. with a price target of Rs 2,910 apiece.

• Multiple of 35x Sep’25 unchanged on changes in operational parameters and stock split

• Citi maintains 'neutral' rating on Infosys

• The research firm reduced the target price to Rs 1,660 apiece from earlier Rs 1,735 apiece.

• Assigns multiple of 25x (vs 26x Sep’25) given concerns on pace of demand recovery

• Citi maintains its 'sell' rating on L&T Technology Services Ltd.

• The research firm revised the target price to Rs 4,375 apiece from earlier Rs 4,325 apiece.

• Revise FY24e-26e estimates by 1% on changes in operational parameters

• Citi maintains 'buy' rating on Larsen & Toubro and increased the target price to Rs 4,373 apiece from Rs 4,082 apiece earlier.

• Target P/E on core P&M business increased to 40x given capex upcycle and rerating in sector.

• Rerating on basis of multi-year lows in working capital, healthy execution and increasing RoEs.

• L&T remains top-pick in India Infrastructure and Industrials space.

• Citi maintains 'sell' on Zydus Lifesciences Ltd. with a target price of Rs 650 apiece from earlier Rs 750 apiece.

• Expects improvement in base business margins.

• Increases FY24-26E earnings per share by 8-11% due to higher sales of gRevlimid

• Volume trends in March 2024 were a mixed bag

• 2Ws show Mixed performance; TVSL does well,HMCL a laggard

• PV Dispatches up in double-digits across the pack

• CVs Weakness persists led by MHCVs

• Tractor volumes decline in double-digits across major players

• Continue to prefer 2Ws amid replacement-led visibility over 2-3 years

• Underlying metrics continue to remain weak for PVs

• CVs are potentially poised for a downcycle

• TVS Motor Company and Escorts top picks in OEMs.

• Estimates slower Q4FY24/Q1FYF25 pre-sales amid election delay in RERA approvals

• Expect companies to guide 10-20% YoY growth in FY25E vs 30-40% in FY24

• Downgrades DLF Ltd. to 'equal weight' rating with price target of Rs 900 apiece.

• Upgrades Godrej Properties Ltd. to 'overweight' rating, price target of Rs 2,500 apiece.

• Rating upgrade on stronger 3Q/4Q24 pre-sales and 40% higher 2025 pre-sales estimates

• Maintains 'overweight' on Prestige Estates Projects Ltd. with price target of Rs 1,400 apiece

• Maintains 'equal weight' on Macrotech Developers Ltd. with price target of Rs 1,050 apiece

• Maintains 'underweight' on Oberoi Realty Ltd. with price target of Rs 1,180 apiece.

• Motilal Oswal maintains 'buy' on Dalmia Bharat Ltd. with a target price of Rs 2,500 apiece, implying an upside of 25%.

• Expects double-digit volume growth in Q4 FY24

• Delay in the acquisition of Jaiprakash Associates Ltd. cement assets remains a key overhang.

• Expect prices in the firm's key market areas to improve.

• Leverage at a comfortable level despite significant expansion

• Cut FY24/25/26 Ebitda estimates by 4/8/8% on weak pricing.

• Citi Research opens a positive 90-day catalyst watch on
  Adani Ports and Special Economic Zone Ltd.

• The price target increased to Rs 1,758 apiece from Rs 1,564 apiece earlier.

• Expect strong volume, revenue and Ebitda growth for Q4 FY24E.

• Believes valuations remain reasonable at 30x P/E on FY25E estimates.

• FY24 port cargo volume of 420 mnt exceeds revised guidance of 400 mnt

• Views the recent acquisition of a 95% equity stake in Gopalpur Port as incrementally positive.

• Increasing FY24E/FY25E/FY26E earnings per share by 20%/18%/16%

• Indian auto OEMs ended FY24 on a modest note.

• While passenger vehicle volumes were steady, two-wheeler volumes could have been better.

• Truck volumes were lacklustre, as expected, but bus volumes were encouraging.

• Tractors continued to witness weak demand.

• UV volumes rose 58% year-on-year, 5% month-on-month decline was slightly disappointing.

• E2W volumes were down 1% year-on-year and down 15% month-on-month.

• Maruti Suzuki remains our top pick in the sector.

• Emkay initiates coverage on Honasa Consumer with a 'buy' rating.

• The target price is set at Rs 500 apiece, implying an upside potential of 19%.

• Sees a steady scale-up in its business

• Expects robust revenue growth of 24% CAGR over FY23–26E.

• Expects a healthy margin to expand to 12% by FY26E.

• Expects to enhance its return profile for FY26E RoE at ~17%.

• A management asset-light approach leads to differentiated product development, new brands and new categories.

• The addition of new brands and inorganic brands creates a funnel.

• Believes category relevance is the management’s top priority.

• Expects the company's return profile to register steady expansion

• BofA reiterates 'underperform' rating on Indiamart Intermesh Ltd.

• The research firm has cut target price to Rs 2,100 from earlier Rs 2,175.

• Expect softer net adds in fourth quarter led by higher-than-expected churn

• Collections growth also to slow down

• See near-term impact on growth as company looks to defocus on monthly plan

• Better margin on lower operating expense to aid overall growth

• Limited visibility on churn reduction

• Reduce FY25/26 earnings per share on lower revenue growth

• Macquarie initiates coverage on Aditya Birla Capital Ltd. with 'outperform' rating, with a target price of Rs 230.

• Top pick in the NBFC space.

• Poised to show strong growth in earnings and lending.

• Strong parentage, leveraging group strength, diversified products, strong leadership.

• Stock has potential to double in three years.

• March wholesales hit a speedbreaker

• PV witnessed demand moderation with higher year end discounts

• 2W fell short of analyst expectations but EVs were a key positive

• Tractors and CV on a slow road; on high base and election led pause

• CV outlook recovery only in H2FY25

• Buy rating on Maruti and Tata Motors

• ICICI Securities maintains 'add' on Coal India Ltd.

• Target price unchanged at Rs 500 apiece on 8.5 times FY26 EPS.

• FY24 operating performance better than expectations.

• Supply to power sector exceeded demand by 8.5 million tonnes.

• Management indicated production and sales volume target of 838 MT each.

• Estimates production at 820 MT and sales volume at 811 MT.