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Brokerage Radar: Alkem Lab gets target upgrades, Nomura upgrades Eicher Motors to 'Neutral'

14 Nov , 2024   By : Debdeep Gupta


Brokerage Radar: Alkem Lab gets target upgrades, Nomura upgrades Eicher Motors to 'Neutral'

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Alkem Laboratories, Eicher Motors, Sunteck Realty and more.

Alkem Laboratories

Nomura On Alkem Lab

Maintain Neutral, Target Raised To `6,097/Sh
Co Expects Slower Topline Growth But Higher Margin In FY25
Volume Growth Impacted By A Loss Of Contracts & Supply Chain
Co Expects US Biz To Decline By A Mid-single Digit Percentage YoY In FY25
Co Now Expects FY25 Revenue Growth In Mid-single Digit Vs 10% Previously
Expect Margin To Expand By 100 bps YoY In FY25 At 18.5-19.0% Vs 18% Previously
Lower Material Costs And New Business Overheads Support Margin

HSBC On Alkem Lab

Maintain Hold, Target Raised To `5,540/Sh
Reported Q2 Sales Below Our Estimates
Lower Operating Expenses Helped Margin Beat Our Estimates
Margin To Be Rangebound At 19-20% Over FY25-27
Recovery In US Sales Growth Key To Reduce Margin Drag

Jefferies On Alkem lab

Maintain Underperform, Target At `4,950/Sh
Q2 Results Below Our Estimates On Lower Revenue Growth Across Regions
Rev Growth Guidance Lowered While Margin Target Raised
India Growth Expectations Toned Down
US Is Expected To Pick Up Traction From Q2 & RoW Outlook Is Robust

Eicher Motors

Jefferies On Eicher Motors

Retain Buy Call, target At `5,500/Sh
Q2 EBITDA Flat YoY, But 8?low Est On Lower-than-expected RE Margin
RE Volumes Are Showing Signs Of Pick-up
RE Should Be A Key Beneficiary Of 2W Premiumisation
Toughest Phase Of Competition Is Behind

Morgan Stanley On Eicher Motors

Maintain Underweight, Target At `3,655/Sh
Posted Weak Q2 Earnings With EBITDA 8?low Our Estimate
Company Is Now Focussing More On Growth Than Margins
Growth Over Margin A Right Strategy, But Valuation Keeps Us Underweight
Despite Good Mix, EBITDA Margin Declined On A YoY Basis

Nomura On Eicher

Upgraded To Neutral From Reduce, Target Raised To `4,391/Sh
Q2 Margin Misses On Growth Investments
Encouraged To See RE’s Shift In Stance To Drive Volume Growth
Market Share Loss Could Be More Gradual
Given Better Strategy, Upgrade The Stock To Neutral
Raise FY25/26 RE Volumes Estimates By 3-5%
Lower Margin Estimates By 20-40 bps For FY25/26/27

Jefferies On Sunteck Realty

Maintain Buy, Target Raised To `700/Sh
Balance Sheet Turned Net Cash On Consistent Optg Cashflow Performance
Project Pipeline Doubled Over The Last 2 Yrs
FY25 Pre-sales Are Trending Well With 31% Sales Growth In H1
Management Has Reiterated Its Guidance Of 30% Sales Growth In FY25

Jefferies On PI IndustriesMaintain Buy, Target At `5,100/Sh

CSM Exports Saw Double-digit Revenue Growth
Domestic Revenue In-line While Pharma Slightly Ahead
Mgmt Lowered FY25 Rev Growth Guidance To High-single Digit

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