JPMorgan On Swiggy
Initiate Overweight Call, Target At Rs730/Sh
See Co Catching Up Across Both FD & Quick Comm Due To Renewed Focus & Improved Execution
Co May Hit Critical Scale Across Both Core Business
Critical Scale Achievement Will Enable Faster-than Peer
Expansion In Profitability Over FY25E-28
Swiggy Trades At 32-42% Discount To Zomato That Appears Overly Pessimistic
See Swiggy Emerging As An Underappreciated Winner In India Local Services Ecosystem
Nuvama On Minning
Karnataka Government Has Proposed A Bill To Levy Tax On Various Minerals Including Iron Ore
If Bill Is Passed, It Will Hurt Both Miners/Consumers
Bill Shall Affect Vedanta And NMDC The Most In Karnataka Mines
JSW Steel Will Be Indirectly Hurt In Case NMDC Goes For Recovery
It Is Possible Other States Too May Follow Suit, Which Shall Affect All Steel Producers
MOSL On MTAR Tech
Buy Call, Target At Rs2,100/Sh
Co Derives Majority Of Its Revenue From Clean Energy Segments
Most Of Co’s Revenue Comes From Bloom Energy
Transitory Impact Of Bloom Energy’s Product Changes Is Over Now
Expect Co To Report Strong Growth In Near Term In Clean Energy Segment
Expect Co To Deliver A CAGR Of 28%/42%/58% In Revenue/EBITDA/Adj Profit Over FY24-27
Nomura On Dr Reddy’s
Upgrade To Buy, Target At Rs1,500/Sh
Relative Underperformance Suggests Concern On High Contribution Of Revlimid Is Priced In
In H1FY25 Large Part Of Growth Was Due To Initiatives, Including Clinical Trials For Biosimilars
Co Has Also Stepped Up Investments In Manufacturing Infrastructure
Capex Has More Than Doubled In FY25
Upside From GLP-1, Biosimilars Are Not Fully Factored Into FY27 Estimates
Investec on Motilal Oswal Financial
Initiate Buy with target price of Rs 1200
A levered play on Indian Equities
A strong capital market franchise
Has strengthened its leadership, brand and distribution
Expect it to deliver an operating PAT CAGR of 31% over FY24-27
A change in equity market sentiment is the key risk to our investment thesis
Nuvama on Somany Ceramics
Maintain Buy, target price revised to Rs 857 vs Rs 918
Volumes to grow 5-6% in FY25E and at a low double digit in H2FY25E
EBITDA margin is likely to be flat in FY25 and increase 100-150bp in FY26 led by focus on value-added mix
Two launches to lift Max plant’s utilisation to 50%
Tiles to outgrow bathware (10-15% of business)
Cutting FY25E/26E/27E EPS sharply by 25%/ 15%/10%
EPS cut owing to current weakness in demand and muted margin guidance for FY25
MS on General Insurance
There was an accounting change for long-term policies effective October 1, 2024
Growth rates are not comparable across segments on a YoY basis
Motor OD GDPI was flat YoY in Nov-24; Private sector reported a 1% dip as HDFC
Ergo declined 50% YoY, Go Digit dipped 1%, while ICICI Lombard was flat YoY
Motor TP GDP| was up 7% YoY in Nov-24; Private sector grew 5% while public grew 10%
Retail health GDPI rose 8% YoY in Nov-24; SAHIs reported 11% growth while private and public sector grew 3%
Jefferies on Small & Midcap Stocks
Post sharp rally in 2023, Small and Midcap outperformed Largecaps in 2024 as well
NSE Midcap is now trading at a +24% premium to its 5-year avg vs +6% for NIFTY
This can be driven by higher EPS growth expectations
FY24-26 NSE Midcap EPS is est at +20% CAGR vs +12% for NIFTY
Suggest staying selective in 2025 with a bottom-up approach
Est EPS CAGR >=35% – have BUY rating on Amber, Nykaa, Coforge, Entero, Bharati Hexacom and Sunteck
Est ROE Expansion of >=500bps – have BUY rating on Colgate, Jubilant Food, Voltas, Delhivery, Nippon Life AMC, Thermax, SYRMA
Trading at a >40% discount to their hist 5-Y avg PE – have BUY rating on Allcargo Logistics, Newgen, HEG, KEI, IDFC First, Bandhan
UBS on Auto
December industry retails on track to post decline led by Hero Moto and Bajaj Auto
TVS Motor and Honda gain big on y-o-y and m- o-m market share; HEROMOTOCO loses the most
Looking at the mid-month data on Vahan we expect the industry to post 7-9% y-o-y decline in retails for the month
Hero Moto and Bajaj Auto clocking 15% retail decline
TVS Motor and Eicher Motors (Royal-Enfield) are on track to post growth as seen from the Vahan retail trends
EVs continue to gain traction even as the market leaders continue to see significant volume erosion
These trends seen along with gains for Honda Motorcycles and Scooters India (Honda) points to significant customer shift away from commuter motorcycles towards scooters, premium and Evs
https://www.thehindubusinessline.com/markets/share-market-nifty-sensex-live-updates-19-december-2024/article69000808.ece
