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Brokerage Radar: Morgan Stanley 'Underweight' on Wipro, JM Financial initiates coverage on Piramal Pharma with 'Buy'

17 Dec , 2024   By : Debdeep Gupta


Brokerage Radar: Morgan Stanley 'Underweight' on Wipro, JM Financial initiates coverage on Piramal Pharma with 'Buy'

Morgan Stanley On Wipro

Underweight Call, Target At `250/Sh

After Capco (2021) & Rizing (2022) Acquisition, See Applied Value Tech Acqn Being Relatively Small

See The Acqn Supporting More Of Capability Boost & Adding Some Marquee Clients To Portfolio

Given Small Scale, See Acquisition Having A Limited Impact On Financials In FY25/FY26


CLSA On IT

TCS, Infosys & Wipro, In Their Quarterly Preview, Showed Confidence In Improving Client Sentiments

Post The Recent US Election Outcome, TCS Expects Tech Budgets To Expand In CY25

Furlough Impact In BFSI Is Expected To Be Similar To Last Year

Recovery Is Expected Particularly In US BFSI Getting Broad Based Across Sub-Sectors

Infosys Is Now Getting Into Weak H2 Seasonality With Q4 Even Weaker Than Q3

Expect Wipro Could See Another Leg Of Re-rating If They Announce Any Capital Allocation Changes


Equirus On Delhivery

Initiate Long Call, Target At `459/Sh

Project A 14% Revenue CAGR Over FY24-FY27 With EBITDA Margin Expanding To 8.6% By FY27

Revenue & EBITDA Margin Led By Operating Leverage & Improved B2B Partial Truckload Margin

Given Co’s Rapid Growth, Expect Premium Valuations (Over Traditional Logistics Players) To Sustain


Jefferies On Airlines

IndiGo's Pace Of New Aircraft Deliveries Has Picked Up In Past Few Months

Air India’s New Aircraft Deliveries Has Slowed Down In Last Few Months

Deliveries Could Sharply Slow Further In 2025 For Air India

Slower Delivery Will Cap Overall Supply Growth For Sector

Both IndiGo & Air India Seem To Be Adding Higher Flights On International Routes

International Routes Addition Is Aiding Domestic Loads/Yields

Normalising Cost Curve, Scale Up Of New Digital Initiatives Are Key Drivers For IndiGo In Next Yr

Maintain Buy Call On IndiGo


Jefferies On Pharma

Lupin Begins To Gain Market Share In Mirabegron Post Its Higher Strength Product Launch

Zydus Has Begun To Lose Asacol HD (Ulcerative Colitis Drug) Market Share To Teva

Biocon Is Doing Well In Biosimilars Of Pegfilgrastim (Neutropenia Drug) & Trastuzumab (Cancer Drug)

Sun’s Pharma Specialty Momentum Continues With Decent Growth From Winlevi, Ilumya & Cequa

Pain For Dr. Reddy's Continues In Generic Ciprodex


JM Fin On Piramal Pharma

Initiate Buy Call, Target At `340/Sh

Build in A 23% EBITDA CAGR Resulting In Steady Cash Generation

Trading At A 21x/17x FY26/27 EV/EBITDA, 38% Discount To Average Listed Peers

Co’s CDMO Business – Its Largest Revenue Segment – Is Key To Its Outperformance

Traction Gained Through Newly Commercialised Molecules Will Help The CDMO Segment

Recovery Expected In US Biotech Sector Starting In H2FY25

CDMO Segment May Achieve 17?GR Over The Next 3 Years

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