Goldman Sachs has a ‘buy’ recommendation on Trent with the target price at Rs 6,970. Analysts said the company’s margins came in better than expected by them. They said while the weak gross margin possibly indicated higher than usual discounting during the end-of-the-season sales, operating costs were well below estimates, leading to an operating margin expansion.Some operating costs in the Jan-March quarter were unusually low. Also, the management mentioned that the full year profitability is more representative of the business.
Motilal Oswal Financial Services has put a ‘buy’ rating on Varun Beverages with a target price of Rs 665. Analysts believe the company maintained its volume growth trajectory in the domestic market and its expansion in international markets, with the integration in South Africa progressing well. Management is confident about its double-digit growth guidance on the back of industry tailwinds and expansion into new markets every year via the addition of visi-coolers (in domestic and international markets).
Elara Securities India has reiterated its ‘accumulate’ call on Ambuja Cements with the target price unchanged at Rs 616. Analysts believe the cement major is well-positioned to deliver healthy volume growth, led by better demand, ramp-up in acquired assets and completion of ongoing capacity expansions. Additionally, while the recent uptick in cement prices will support near-term margin, its continued focus on cost saving initiatives should help keep a check on margin in the medium term.Sub-par demand, weak cement price and a sharp rise in fuel price are key risks to the analysts call.
InCred Equities has maintained its ‘add’ recommendation on Aditya Birla Sunlife AMC with the target price at Rs 800 but removed it from its high-conviction stocks list. Analysts believe that the company is taking the right steps for improving market share. However, they see the competition is intensifying, along with volatile capital markets, which seem to be weighing down on equity fund market share movement and SIP inflow. Key downside risks are low traction in new funds and a higher employee attrition rate.
Emkay Global Financial Services has a ‘buy’ rating on Adani Green with a target price of Rs 1,500. Analysts said the company reported an uptick in operational capacity and improvement in Capacity Utilization Factor, leading to high growth in sale of power. Book realization was stable on a quarterly basis, while share of merchant cum infirm rose. The management highlighted that the rains impacted Khavda project work in FY25, thus slowing capacity addition to 3.3GW, though FY26 guidance is healthy at 5GW, with 1GW likely to be commissioned within a month.
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