MS on Chemicals
Still not out of the woods
Downgrade SRF/Aarti to EW & Tata Chem to UW
Fiscal 2025 should be a story of monetisation & restocking as vol traction improves across multiple end markets, tempered by competition and uncertain pricing dynamics.
Remain on sidelines
SRF – Downgrade to EW, TP cut to Rs2,115 from Rs2,557
Aarti – Downgrade to EW, TP Rs 613 from Rs575
Tata Chem – Downgrade to UW, TP cut to Rs 843 from Rs904
Jefferies Greed & Fear
GREED & fear will shave the weighting in public sector companies in the long-only India portfolio Weightings in ICICI Bank, State Bank of India, REC Limited and Coal India will be reduced by one percentage point each.
Investment in PolicyBazaar will be introduced with a 4% weighting
As for the Asia ex-Japan long-only portfolio, the investment in JSW Energy will be increased by one percentage point by shaving the investment in State Bank of India.
Citi on Gas
PNGRB has now issued draft regulations that seek to bring LNG terminals under its purview
move intends to increase regulatory oversight operation of LNG terminals
this could manifest in the form of uncertainty on the strong pricing power that Petronet LNG currently.
Jefferies on Gas Sector
Govt is reviving talks to include NG under GST.
Among 4 key states that could hold sway, 3 are under the ruling NDA.
GAIL's consol Ebitda could rise 2% assuming it retains benefit in LPG segment
GUJGA's competitiveness to propane would improve by 6%
Kotak Inst Eqt on Interglobe Aviation
Buy, TP Raised to Rs 5700 from Rs 5100
Factor in Indigo moving toward its historical peak of spreads over FY2026-27
Recent sound bites from Industry experts suggest most challengers to Indigo will see another year of stiff losses in FY2025
CLSA on ZEE Ent
U-P, TP Rs 150
Board approves Rs20bn fundraising as sector landscape is changing
With this fundraising, think Zee is looking to fortify ahead of increased competition
Await fundraising & Co’s growth pursuit
Low promoter ownership of 4% remains a key challenge
CLSA on OMCs
Given a weaker-than-expected election mandate, fears of a more populist government have risen.
This, along with falling margins, may drive a de-rating of OMCs
Prefer ONGC over IOCL, BPCL and HPCL.
CLSA on Power Sector
Modi 3.0—100-day power plan
NTPC is leading way with 8.8GW of tenders announced this week
While believe off-shore wind subsidies could be postponed, hydro policy is important for India’s net zero.
NTPC, NHPC, PWGR & BHEL are key beneficiary
MS on Wipro
UW, TP Rs 421
Mega-deal ($500m for 5 ys) in US could be taken positively – especially when discretionary spending environment still remains tight
Believe that even though such large deals add to visibility on rev growth, near-term growth could lag peers
MOSL On BEL
Buy, TP Rs 310
Despite reduced majority, expect that upcoming government’s policy focus on investment-led growth, capex, infrastructure, manufacturing,& defense will continue
Co’s order inflows for FY24 were far ahead of its guidance
By: via AlliesFinServe #StockMarket #Bharat Telegram.me/AlliesFin
