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Brokerage Radar: CLSA ups target on Persistent Systems, Citi maintains 'Buy' on Indus Towers

05 Dec , 2024   By : Debdeep Gupta


Brokerage Radar: CLSA ups target on Persistent Systems, Citi maintains 'Buy' on Indus Towers

Citi On Indus Towers

Buy Call, Target At `485/Sh

Vodafone Group Plc To Sell Its Balance 3% Stake In Co, Est Total Sale Proceeds At `2,700-2,800 Cr

After Repaying Outstanding Borrowings Of $101 m, Est Residual Proceeds At `1,900-2,000 Cr

Residual Proceeds Would Then Be Infused As Equity By Vodafone Plc Into Voda Idea

Voda Idea Will Use Proceeds For Clearing Its Past Dues To Indus

The Amount Adds Up To `7/Sh For Indus, Which Believe Can Then Be Paid Out As a Dividend

Co Could Be In A Position To Pay Out `11-12/Sh Of Dividend For H2FY25

Dividend Could Rise To More Than `20/Sh/annum In FY26 & FY27

There Can Be A Compelling Dividend Yield Of 6% Over FY26-27 At Current Levels


CLSA On Persistent Systems

Outperform Call, Target Raised To `8,462/Sh

Multiple Growth Drivers &Margin Levers Leading To Higher Estimates

Operating In A Different League On The Back Of A Unique Set Of Capabilities

Increase Both Near-term & Longer-term Revenue Growth Forecasts

Forecast A 21% US Dollar Sales CAGR Over FY25-27

Increase EBIT Margin Assumption For FY27 To 16.2% From A Prior 15.5%


CLSA On Juniper Hotels

Initiate Buy Call, Target At `430/Sh

Co Is Largest Owner Of Hyatt Keys In India

A Strong Track Record Of Building Assets With High Entry Barriers

Asset-Owners Like Co Positioned To Benefit From Current Upcycle With Hotel Ind Demand Growth

Hotel Ind Demand Growth May Surpass Supply Growth Over FY24-29

Est 16?ITDA CAGR Over FY25-27 Led By Improvement In Occupancy & ARR At Grand Hyatt Mumbai


Nomura On Cement

Price Hike In East & North Bumps Pan-India Trade Prices By `5/Bag MoM

Concerns Remain Over Demand Pan-India

In Eastern Region Trade Prices Are Up `16/Bag MoM In Dec, In Northern Region `13/Bag MoM

In Southern Region & Western Region Prices Remain Flat MoM

In Central Region, December Prices Are Down By `2/Bag MoM


Morgan Stanley On Hero MotoCorp

Underweight Call, Target At ` 4,110/Sh

Co Launches Electric Scooter, Vida V2 Across Segments

Think Sustained Market Share Gains Are Key To Re-rating

e2-wheeler Share Was 6% In Nov-24, & Vida Variants Are Well Priced

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