Brokerage Calls: A Comprehensive Review
Top brokerages have been actively tracking the performance of various companies, and their recent commentary on Swiggy, Lodha, ITC, Dabur, and NTPC has drawn significant attention from investors. In this article, we will delve into the details of these brokerage calls and analyze their implications for investors.
Swiggy Ltd.
Swiggy has been a focus area for several brokerages, with UBS maintaining a ‘Buy’ call with a target price of Rs 580. The brokerage firm has cited solid trends in both food delivery and quick commerce segments as the reason for its positive outlook. Additionally, the recent QIP is expected to alleviate balance sheet concerns, and the management has reiterated its guidance, which has boosted investor confidence.
On the other hand, Macquarie has maintained an ‘Underperform’ call with a target price of Rs 285. The brokerage firm has highlighted growth, margin improvement, and still high losses as concerns. Despite Swiggy sustaining its growth trajectory across segments, the reduction in quick commerce losses has been albeit still high. Overall platform EBITDA losses remain more than $500 million (annualised), highlighting the economic challenges for the platform.
Lodha Developers Ltd.
MOSL has maintained a ‘Buy’ call with a target price of Rs 551. The brokerage firm has noted that food delivery growth is in line, but QoQ growth indicates some market share loss. However, the company is preparing for battle, and capex moderation aids margins, although competitive risks loom ahead. Competition is expected to pick up, but decent operating leverage as new dark stores ramp up is a positive sign.
ITC Ltd.
Morgan Stanley has maintained an ‘Underweight’ call with a target price of Rs 400. The brokerage firm has cited growth weakness as a concern, although Q3 is expected to benefit from the shift in winter season loading for Chywanprash and expectations of a harsh, prolonged winter. H2 revenues are expected to grow in mid to high single digits, led by low to mid single digit volume growth. FY26 EBITDA growth is expected to be higher than revenue growth.
Citi has maintained a ‘Sell’ call and reduced the target price to Rs 475 from Rs 485. The brokerage firm has noted that in-line Q2 results have been reported, but growth challenges persist across key categories. A slight acceleration in revenue growth is expected in H2 off a low base, and the company will monitor potential recovery across categories that have been under pressure.
Dabur India Ltd.
Macquarie has maintained a ‘Neutral’ call with a target price of Rs 490. The brokerage firm has noted that in-line Q2 results have been reported, but FY26 guidance has been toned down. Moderation of H2 sales growth guidance to a mid- to high-single digit range is a concern.
NTPC Ltd.
Goldman Sachs has maintained a ‘Buy’ call and hiked the target price to Rs 490 from Rs 480. The brokerage firm has noted that the company has reported an in-line quarter and is poised for margin recovery in the second half. Cigarette growth was strong, and margins are likely to recover in H2. Strong FMCG performance despite GST transition headwinds has been a positive sign. Paper business margins have begun a gradual recovery and are likely to further improve in H2.
In conclusion, the brokerage calls on Swiggy, Lodha, ITC, Dabur, and NTPC have provided valuable insights into the performance of these companies. Investors should carefully analyze these calls and consider their own risk tolerance and investment goals before making any decisions. It is also essential to stay up-to-date on market news and track stock market trends to make informed investment decisions.
Key Takeaways
- Swiggy has reported solid trends in both food delivery and quick commerce segments.
- Lodha Developers has reported in-line food delivery growth, but QoQ growth indicates some market share loss.
- ITC has reported growth weakness, but Q3 is expected to benefit from the shift in winter season loading for Chywanprash.
- Dabur India has reported in-line Q2 results, but FY26 guidance has been toned down.
- NTPC has reported an in-line quarter and is poised for margin recovery in the second half.
For more information on stock market news and investment tips, please visit our website.