Kamal Ghorui
Morgan Stanley maintained an overweight rating on Reliance Industries with a target price of Rs 1,803. Analysts said tight global markets are keeping refining margins higher. The company can process heavy and sour crude which is supportive for the stock. The company also has a diversified crude sourcing process among global refiners which also supports the stock. Analysts also said that the chemical cycle was in a recovery phase. Its access to the US ethane and internal naphtha is supportive for the stock. They expect a 6-8% uplift for FY27 earnings.Kotak Institutional Equities has an upgrade rating on Interglobe Aviation with the target price at Rs 5,500. Analysts noted the large exposure of airlines to crude prices and jet fuel spreads, limiting ability to forecast cost structures and take a call on the price elasticity of near-term demand. However, they said that what investors should be more mindful of is fast-growing losses of Indigo’s peers. Aggregate investments of this subset are meaningful, requiring better-than Indigo’s peak post-Covid pre-tax operational profitability to achieve high-single-digit post-tax returns. Airlines are better understood as a play on consumer spending, with consumers eventually paying for inflation over time and airlines benefiting from bouts of deflation.UBS has a neutral rating on AU Small Finance Bank with the target price at Rs 1,100. Analysts said that the RBI has eased promoter holding norms for transition to a universal bank. The bank has to submit its universal banking license application soon. This is a slight positive for the lender as it eases the path for transition to a universal bank.HSBC maintained its buy rating on Ambuja Cements with the target price at Rs 670. Analysts said Sanghi Industries’ cost reduction is a positive for the company. The cement major’s focus on utilisation and return on investment (ROI) versus capacity addition is an encouraging sign. Sanghi visit highlights a large, high quality limestone reserve base and growth optionality at the company’s assets. Analysts also liked the management’s commentary on utilising the existing asset base and improving ROI before further expansions. They also liked the margin expansion story at an attractive valuation.Motilal Oswal Securities maintained its buy rating on Nippon India AMC with a revised target price of Rs 1,040, from Rs 1,060 earlier. Analysts said that the fund house is the fastest-growing AMC with steady SIP flows and ETF dominance. The performance of its funds remained stable over the last few months. Its alternatives (AIF Platform) is building a scalable, margin-accretive adjacency. Although there would be some regulatory impact on yields, the company sees gradual compression and it has mitigation levers in place. Analysts also feel that the ongoing business diversification and prudent cost management are expected to mitigate yield compression impact and support valuation resilience.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
