2 days Ago By Divya Prata
Jefferies remains constructive on the Indian power and defence sectors, and shares its top stock picks. CLSA expects HCL and Infosys to improve their fiscal 2025 guidance. Investec expects price hikes in cement rates, and Nuvama shares its outlook on road infrastructure and projects.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are the top calls from analysts you need to know about on Thursday: Double digit capex growth to be watched for in fiscal 2026 budget. Fiscal 2025 budget retained 16% year-on-year government capex growth of the interim budget.
Actual spend disappointing with centre capex declining 15% year-on-year in the first seven months of the financial year. 32% year-on-year growth needed in Nov-March 2025 for 5% growth to be achieved in FY25. Remain constructive on the power and defence sectors.
Power capex CAGR highest in sub-segments—Siemens, Thermax, KEI good plays. Top picks include Siemens, HAL, Thermax and Larsen & Toubro. Ratings include maintaining a 'buy' call on: Siemens, with a target price of Rs 9,555, indicating a 21% potential upside.
Hindustan Aeronautics, with a target price of Rs 5,500, indicating a 30% potential upside. L&T, with a target price of Rs 4,600, indicating a 27% potential upside. Thermax, with a target price of Rs 6,100, indicating a 28% potential upside.
Expect HCL and Infosys to improve their FY25 guidance. Stretched valuation keeps ‘cautiously optimistic’ despite improved US economy. Maintain 'hold' on large caps including TCS, Infosys, and HCL Technologies.
Downgrade Wipro to 'hold' from 'outperform' due to recent price movement. Maintain 'buy' on L&T, with a revised target price of Rs 4,600 versus Rs 4,160 earlier, implying a 27% potential upside. Low investor expectations built in, expect stock upside on guidance delivery.
Revenue beat and margin delivery in the first half of the fiscal give confidence on healthy second half. FY25 order flow guidance was maintained at 10% year-on-year growth. L&T could see an additional re-rating on the ESG leg.
Raised target price given improved visibility on government infra spend post Maharashtra elections. Retain 'buy' rating on Ambuja Cements, JK Cement, and UltraTech Cement. Pan-India cement prices rose Rs 8.
5 per bag month-on-month in Dec. 2024, 8% lower year-on-year. Price hikes of Rs 10-20 per bag expected in Jan.
2025 in some areas. Demand improved slightly month-on-month but still weaker year-on-year; revival likely post Sankranti. Above-normal rainfall of nearly 8% and strong Rabi sowing to support demand.
North prices up Rs 9 to Rs 369, Delhi/Jaipur up Rs 10 with a Rs 10-15 hike expected in Jaipur. Central prices up Rs 11 to Rs 327, Indore up Rs 15, Agra/Lucknow up Rs 10 with a Rs 10 hike likely. West prices up Rs 6 to Rs 359, Ahmedabad up Rs 15, Mumbai up Rs 5 with a Rs 10-20 hike expected.
East prices up Rs 15 to Rs 351, Patna/Ranchi up Rs 20 and Bhubaneswar/Kolkata up Rs 10. South prices up Rs 2 to Rs 21, Vizag/Madurai up Rs 5 and a Rs 10-15 hike expected in Vizag/Chennai. After a muted start in fiscal 2025, road awarding improved Jul.
2024 onwards. In the first nine months, NHAI awarded up to 663 kilometre projects, up 71% year-on-year on low base. Road construction in Dec.
2024 at 630km mark, up 97% year-on-year or 186% month-on-month. Road developers must work on segmental diversification. Intense competition for road projects remains a worry.
Remain cautious on road-focused players..
