Stock Recommendations Today: M&M, Samvardhana Motherson, Indus Towers, Afcons On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Mahindra & Mahindra Ltd., Samvardhana Motherson International Ltd., Indus Towers Ltd. and Amber Enterprises Ltd. were among the top companies on brokerages’ radar on Monday.

Nomura Research initiated coverage on Afcons Infrastructure Ltd. with a ‘buy’ rating and a target price of Rs 561 apiece. Meanwhile, analysts have also given a detailed take on the pharmaceutical and steel sectors.

Indian market correction is unfolding as expected, according to Bank of America. It forecasts a weak calendar year 2025. Short-term risks from reciprocal tariffs persist, but medium-term gains are possible post-trade war stabilisation, said Nomura.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Monday.

Morgan Stanley On Steel

• Increased discussions on imposing anti-dumping and safeguard duties to protect the domestic steel industry from imports.

• Any additional import duty would be positive, as it could lead to higher domestic steel prices.

• Entire industry should benefit, with companies having a higher share of flat products in their portfolio gaining the most.

• A 15% safeguard duty could drive domestic hot rolled coil prices up by 10% and increase Ebitda for fiscal 2026 by 15-40%.

• JSW Steel stands to benefit the most due to its high share of flat products and volume support.

• Steel Authority of India to see the highest earnings impact, given its low base.

Morgan Stanley On M&M

• Retained an ‘overweight’ rating on the stock and a target price of Rs 3,675 apiece.

• Reports 30,179 bookings for battery electric vehicles, amounting to an order book of nearly $1 billion, signaling a strong start.

• Booking mix was a positive surprise: XUV 9e accounted for 56% of total bookings, while the Pack 3 variant made up 73% of bookings.

• Mahindra & Mahindra likely to be the fastest-growing passenger vehicle company in 2025.

BofA On India Strategy

• Market correction unfolding as expected. Forecasts a weak calendar year 2025.

• Continues to anticipate single-digit returns for the Nifty in calendar year 2025, accompanied by significant volatility.

• Key risks include sustained earnings downgrades, uncertainty in US policies, slowing capital expenditure, weak foreign institutional investor flows, potential risks to domestic institutional investor flows, and high valuations.

BofA On Samvardhana Motherson

• Retained a ‘buy’ rating on the stock and lowered target price to Rs 160 apiece from earlier Rs 175.

• Reported a decent quarter despite a challenging macroeconomic environment.

• Non-automotive business expansion and mergers and acquisitions remain key focus areas.

• Emerging businesses positioned for significant scale-up.

• Mergers and acquisitions: Strengthening presence through Japan acquisitions.

Nomura On Modi-Trump Meeting

• Short-term risks from reciprocal tariffs persist, but medium-term gains are possible post-trade war stabilisation.

• The bilateral meeting met expectations, focusing on trade deals, increased US energy imports, defence cooperation, and strengthening the strategic partnership, the brokerage said.

• Negotiations on the India-US trade deal to begin, with some concessions expected.

• Given India’s higher tariff rates, non-tariff barriers, and trade surplus with the US, it remains a target for reciprocal tariffs.

• Expects India’s energy imports from the US to rise over time, potentially reducing Russia’s share.

• This shift will impact the composition of India’s energy imports and trade balance.

• Over the medium term, India is likely to encourage cheaper imports and attract US investments in key sectors.

• India should benefit from the ongoing supply-chain relocation trend.

Citi On Indus Towers

• Retained a ‘buy’ rating on the stock and a target price of Rs 490 apiece.

• Positive growth outlook over the next one to two years, driven by new rollouts by Vodafone Idea and Bharti, alongside the recent acquisition of 16,000 towers.

• Expects overall tenancy growth to approach 15% in the fiscal 2026.

• Strong free cash flow generation should support dividend payouts with fourth-quarter results.

• Estimates dividend payouts of Rs 18-25 per share over the fiscals 2025-2027.

Jefferies On Amber Enterprises

• Retained a ‘buy’ rating on the stock and a target price of Rs 8,845 apiece.

• Domestic air conditioning industry could grow 30% year-on-year, led by strong summer demand in the first quarter and channel filling in the second and third quarters.

• Imposition of approximately 30% anti-dumping duty in 2024 on printed circuit boards enabled Amber to secure new customers and orders.

• Mobility segment growth impacted by order delays.

• Expects margin-accretive components’ compound annual growth rate to outpace that of air conditioning.

• Return on capital employed could rise significantly post-normalised capital expenditure.

Jefferies On IIFL Finance

• Retained a ‘buy’ rating on the stock and lowered target price to Rs 425 apiece from earlier Rs 595.

• Third-quarter profit after tax disappointed due to weaker net interest margins and higher provisions.

• Gold assets under management ramped up well, but growth in other segments slowed.

• Reduction in gold loan yields and changes in loan mix should weigh on net interest margins.

• Stress remains high in microfinance institution loans, with some stress seen in micro, small, and medium enterprise loans.

• Cut earnings per share estimates for the fiscals 2025-2027 by 6-18%.

• Near-term earnings should remain under pressure, but profitability is expected to improve.

• Valuations appear reasonable.

Nomura On Afcons

• Initiated coverage with a ‘buy’ rating and a target price of Rs 561 apiece.

• Well known for completing complex projects within stipulated timelines.

• Expects revenue compound annual growth rate of 22% over fiscals 2025-2027, supported by strong order inflows.

• Forecast profit after tax compound annual growth rate of 39% over the same period.

• Focus on maintaining margins.

• Consistent track record of financial performance, characterised by stable margins and a robust balance sheet.

Jefferies On Reliance Industries

• Retained a ‘buy’ rating on the stock and a target price of Rs 1,660 apiece.

• Unexpected arbitration loss in the KG-D6 dispute, with the Delhi High Court overturning its own decision and ruling in favour of the government.

• Reliance-BP consortium required to pay $1.55 billion, though it is likely to challenge the order in the Supreme Court.

• No near-term financial implications for Reliance from this ruling.

• Reiterated that recovery in retail growth, potential public listing of Jio, and rebound in oil-to-chemicals profitability should drive 13% Ebitda growth in fiscal 2026.

HSBC On SBI Cards

• Upgraded rating to ‘buy’ from ‘reduce’ and raised target price to Rs 1,000 apiece from earlier Rs 560.

• Improvement in credit card issuance and softening money market rates are positive factors.

• Decline in credit costs could lead to sharp upgrades in earnings per share estimates.

• An earnings upgrade cycle is now more likely.

• Other asset quality indicators have shown positive trends in the third quarter of fiscal 2025.

HSBC On Gujarat Pipavav

• Upgraded rating to ‘hold’ from ‘reduce’ and lowered target price to Rs 140 apiece from earlier Rs 150.

• Third-quarter Ebitda declined 6% year-on-year due to weaker container and bulk volumes, with Ebitda margins contracting by 2 percentage points.

• Liquid cargo expected to drive volume growth, but overall earnings growth remains dependent on container cargo performance.

• Cut profit estimates for the fiscals ending March 2025-2027 by 4-5%.

• Lacks immediate catalysts, but valuations are now supportive.

HSBC On Pharmaceutical Sector

• Concerns over potential US tariffs on Indian pharmaceuticals appear overstated.

• Awaiting specifics on US tariff policies, but reciprocal tariffs targeting Indian pharmaceuticals are unlikely.

• Indian companies supply 60% of the US generic drug market, playing a crucial role in reducing healthcare costs.

• A hypothetical 10% tariff could reduce earnings per share estimates for the fiscal 2026 by 1-6.5%.

• Market remains focused on the sector’s long-term growth prospects.

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