Market Insights: Analyst Ratings and Target Price Adjustments
In a recent wave of analyst reports, several companies have received updated ratings and target prices, reflecting shifts in market dynamics. Jefferies has downgraded Mahanagar Gas, while Nuvama has adjusted its outlook on ICICI Lombard General Insurance. Meanwhile, Nomura has issued a bullish forecast for Aditya Birla Real Estate, and Morgan Stanley is keeping a close watch on IndusInd Bank’s performance. Here’s a closer look at these developments.
Jefferies Downgrades Mahanagar Gas
Jefferies has assigned an ‘underperform’ rating to Mahanagar Gas, setting a target price of Rs 1,220. Analysts cited a significant 18% reduction in APM gas allocation, which has led to a 26% decline in CNG volume coverage. Despite expectations of flat earnings per share (EPS) for fiscal years 2025 to 2027, analysts anticipate strong volume growth. However, this growth is expected to be offset by compressed margins, raising concerns about the company’s profitability in the near term.
Nuvama Adjusts ICICI Lombard’s Target Price
Nuvama has revised its rating on ICICI Lombard General Insurance to ‘buy,’ lowering the target price from Rs 2,400 to Rs 2,100. The company reported a 10.2% year-on-year increase in gross written premiums, although this growth was tempered by weaker vehicle sales and the deferral of long-term product accounting. The loss ratio has risen significantly, increasing by 298 basis points annually and 578 basis points quarterly to reach 71.6%. This uptick in the loss ratio was partially mitigated by lower expense ratios, although the underwriting loss stood at Rs 210 crore.
Nomura’s Positive Outlook for Aditya Birla Real Estate
Nomura has issued a ‘buy’ recommendation for Aditya Birla Real Estate, setting a target price of Rs 2,700. The company reported impressive pre-sales figures of Rs 5,700 crore for the January-March period, marking a 96% increase compared to the previous year. This surge was largely driven by the success of the Birla Arika project in Gurugram, which achieved record bookings of Rs 3,100 crore across more than 300 units. Additionally, the company has set a robust pre-sales target of Rs 8,000 crore for fiscal year 2025, reflecting a 101% year-on-year increase and aligning with its guidance.
Morgan Stanley Keeps an Eye on IndusInd Bank
Morgan Stanley has maintained an ‘equal weight’ rating on IndusInd Bank, with a target price of Rs 755. Recent external audits have confirmed the bank’s derivative loss estimate at 2.35% of its net worth for the October-December fiscal quarter of 2025. Analysts are closely monitoring the findings from the comprehensive audit report to gain clarity on any discrepancies. The upcoming earnings report for January-March 2025 will also be crucial for assessing the bank’s margin, growth, and asset quality outlook.
Eicher Motors Receives Upgrade from Investec
Investec has upgraded its rating on Eicher Motors from ‘sell’ to ‘hold,’ raising the target price from Rs 4,585 to Rs 5,600. This change reflects the company’s increased market aggression and the potential for margin recovery. After four consecutive quarters of underperformance, Royal Enfield has shown signs of recovery, with a 15% increase in volumes from October to March, contrasting with a 4% decline in the motorcycle industry. The rise in demand is attributed to product enhancements, including the launch of the new Bullet 350 and increased marketing efforts.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
