Stock Markets

Stock Market Live Updates 01 July 2024: Stock market live updates: Sensex, Nifty weakly positive in early trading


BofA Sec on Banks

Buy on HDFC, ICICI, Axis, Kotak

Valuations & Consensus EPS Momentum Remain Near-term Tailwinds

Big 4 Private Banks’ Outperformance Expected To Continue Through Q1FY25 Results

Big 4 Private Banks’ Outperformance Expected Given Stable Outlook For Growth & NIM

Positioning & Flows Remain Supportive

Any Revival In EM Flow Will Benefit Large Cap Banks

Continue To Like PSBs But Do Not Expect Q1FY25 To Be A Major Stock Catalyst

Consensus Earnings Upgrades Are Likely To Resume Only After Q2FY25

GS on Neuland Labs

Buy Call, Target Rs 9,100

Co’s Primary Focus Remains On Small Molecule CDMO Projects In Human Health

Health Sector Is Where The Opportunity Remains Large, With Good Visibility Of Growth

Differentiated Offerings Include Agile Project Management

Differentiated Offerings Include Expertise On Regulatory Affairs For NCE Development

Mgmt Continue To Focus On SMID Biotech Where There Is Scope For Value Addition

Accelerate Filings In The Specialty API Segment

Kotak Inst. on JB Chemicals

Initiate Buy, Target Rs 2,025

Co Offers A Healthy Cocktail Of A Robust Domestic Franchise

Co Offers Niche CMO Presence & Measured Exports Strategy, Aided By Peerless Execution

Having Primarily Grown Organically Until FY22, Co Has Outperformed IPM In The Past Decade

Co Handsomely Outperformed The IPM In The Past Decade By 600 bps

Co Currently Ranks 22 In The IPM

Expect Strong 17%/19% EBITDA/PAT CAGRs Over FY24-27

Strong EBITDA/PAT CAGRs Backed By Improved MR Productivity In India

Nomura on Bharti Airtel

Buy Call, Target Rs 1,650

Co Raises Tariff Plans By 13-21%; Entry Level Unlimited 5G Plans Unchanged For Now

Industry Outlook Remains Robust As Focus Shifts To Value Creation & Monetisation

Co’s Mgmt Indicated Exit ARPUs Of Rs 300 In FY26

Co Would Require Another Tariff Hike Of 20% In FY26

Tariff Repair Now Appears To Be On The Horizon

Tariff Repair Will Drive Robust Earnings For The Industry And Improve Industry Health

Jefferies on Bharti Airtel

Buy, TP raised to Rs 1740

Co’s tariff hikes of 10-21% was c.2% lower than expectations

While its tariff premium vs. Jio for feature phone users has gone up, premium for smartphone users has reduced

This should support Co’s data subscriber additions

UBS on Bharti Airtel

Neutral, TP Rs 1480

Magnitude of price hike smaller than Jio

Macquarie on USL

Underperform Call, Target Rs 1,000

Elections, Heat Wave To Weigh On Q1 Sales

Muted Volume Growth Likely In Q1FY25

Expect 10% Growth In Prestige Sales For Q1FY25

Expect Cost Control Benefits To Result In Standalone EBITDA Growth Similar To Sales Growth At 8%

MS on Amara Raja

Underweight Call, Target Rs 967

Co Now Matches Exide On Capability But Lags On Customer Wins & Ramp-Up Timeline

Fin Returns On Li Battery Biz Are Still Not Clear As EV Battery Deflation Continues

Thus, Remain Selectively Overweight; Prefer Exide Over Amara

MS on Steel

Steel Stocks Continued To Do Well, With Expectations Of Policy Reforms Continuity

Supported By Improved Macro Sentiment In China

Steel Stocks In Our Coverage Are Up 21% In Past Six Months On A Weighted Average Basis

Steel Stocks Have Outperformed The Sensex By 10 ppt

Believe This Outperformance Is Overdone

Kotak Inst. on IndiGo

Buy Call, Target Rs 5,700

Passengers’ Ability To Pay & Losses Will Drive Gradual Increase In Air Fares Over Time

Willingness Of Air Passengers To Pay May Get Tested In The Near Term

Can Impact The Near-term Load Factors And Pricing Strategies Of Airlines

IndiGo Is Only Airline Making Money, A Good Play On An Uptick In Air Fares Over Time

UBS on L&T Fin

Initiate Buy, TP Rs 230

Believe co now on path to expand its b/s after more than 5 yrs, as it nears completion of its loan book shift from wholesale to retail

Has a leading rural portfolio(45% of AUM) & stands to benefit from a likely Govt. increase in rural spend

Market also underestimating its ROA trajectory

Est. unwind of remainder of its wholesale exposure could drive 30bp ROA improvement; hence expect RoA to reach 2.9% by FY26E vs 2.2% in FY24

Believe risk-reward is favourable; trading @1.6X FY26E P/B



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