CLSA has an ‘outperform’ rating on Reliance Industries with a target priceof Rs 1,650. Analysts feel Jan-March quarter PAT was a bit ahead of estimates. The management guided Reliance Retail to resume its strong growth trajectory from the current quarter.For the first time, RIL committed to growth via quick comm under 30-minute deliveries offered with no delivery/hidden charges.
Morgan Stanley has an ‘equal weight’ rating on IDFC First Bank with the target price at Rs 65. Analysts said the bank’s MFI portfolio weighed on earnings, but collection efficiency in March/April has improved. They said that growth and asset quality trends outside of the MFI portfolio stayed steady. They expect RoA (return on assets) to rebound from 0.4% in FY25 to 1.1% in FY27.
JP Morgan has a ‘neutral’ call on Maruti with the target price at Rs 12,800. Analysts said the Jan-March quarter was a miss despite lower discounts and operating leverage. The key drivers of the miss were new plant ramp-up, weaker model mix, commodity headwinds, higher advertising costs, some lumpy and seasonally higher expenses. They feel EBIT margin could improve from the last quarter’s levels. They also believe FY26 could be weaker than FY25 as the company continues to ramp up its new plant in an environment where volume growth could remain soft.
Investec has maintained its ‘buy’ rating on Mahindra & Mahindra with a target price of Rs 3,370. Analysts feel SML’s addition by the auto major would strengthen the LCV franchise. The management intends to grow its market share to 10-12% by FY31 and further expand it to 20% by FY36. SML will contribute only 2%-3% to M&M’s revenue in FY27. But this will help M&M fortify its position in a segment where it has hitherto lacked dominance. Valuation is attractive and the outlook for LCV is improving, analysts said.
Kotak Institutional Equities has a ‘buy’ rating on Shriram Finance with the target price at Rs 750. Analysts said the company reported a marginal rise in delinquencies across segments, raising market’s anxieties. They said trends are definitely monitorable, though not alarming. While growth remains calibrated, liability-side tailwinds provide a buffer to earnings, they said.
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