BofA Securities has a ‘neutral’ rating on Tata Motors with a target price of Rs 735. Analysts said that at a conference call, the company’s CFO indicated that it was early to react to expected tariff by the US but supply chain rethink was unlikely. The company’s mitigation plan includes premiumization, cost, pricing and developing other markets. They also feel the demerger of the company would unlock value.
Jefferies has a ‘buy’ rating on GMR Airports with a target price of Rs 92. Analysts said that the authorities have issued a tariff order for FY25-FY29 of the company’s Delhi Airport. The final aero tariff is broadly in line with what was suggested in a recent consultation paper, implying 148% increase in Yield/pax. Tariff order outcome improves visibility on profitability, analysts said.
CLSA has an ‘outperform’ rating on HAL with a target price of Rs 4662. Analysts said that the company won its biggest ever order of Rs 62,700 crore for light combat helicopters which will add 53% to the company’s order-book and improves decadal growth visibility. HAL trades at a deserved premium to global aerospace peers given its Make in India pipeline and market access.
HSBC has a ‘buy’ rating on Bharti Airtel with a target price of Rs 1,985. After its recent management meeting, analysts said that the company’s growth levers were intact which include rising mobile ARPU, expanding home broadband subscribers, rising free cash flow, and growth in dividends. The key discussion point during the management meet was on potential timing of the next tariff hike.
Citigroup has put a ‘buy’ rating on Vodafone Idea with a target price of Rs 12 after the company announced that the govt will convert part of its outstanding spectrum dues to equity. Analysts view this as a major display of support by the government in a very timely manner, which should provide significant cash flow relief to the company in the next three years and help it complete its bank debt raise.
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