Stock Recommendations Today: Swiggy, Nykaa, Eicher Motor, Varun Beverages On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Swiggy Ltd., FSN E-Commerce Vantures Ltd. and Eicher Motors Ltd. were among the top companies on brokerages’ radar on Tuesday.

Further, Bernstein maintained a cautious outlook on India, with low-volume stocks as their preference. In their note they also said that the auto sector could present potential opportunities.

Citi has initiated a ‘buy’ rating for Swiggy, amid improved gameplay and its long-term growth outlook in food delivery and quick commerce.

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

Brokerages On Nykaa

BofA

• BofA has maintained an ‘underperform’ rating on Nykaa, with a target price of Rs 150.

• The company’s revenues are in-line with expectations, and Ebitda margins have seen a slight increase on a quarter-on-quarter basis.

• There are concerns regarding the margin trajectory and the fashion business of Nykaa.

Citi

• Citi has maintained a ‘sell’ rating on Nykaa, raising the target price to Rs 160 from Rs 155.

• Operating leverage has improved, driving margins above 6%.

• However, the margin expansion trajectory is expected to be more gradual than initially anticipated.

• The stock trades at 58 times EV/Ebitda and 88 times EV/EBIT, leading Citi to recommend a ‘sell’, based on valuation.

Morgan Stanley

• Maintained an ‘overweight’ rating on Nykaa, with a target price of Rs 200.

• The company’s third quarter results showed a good beat on both the top line and Ebitda margin.

• The Beauty and Personal Care segment is accelerating in growth, and margins have slightly improved.

• Morgan Stanley likes Nykaa’s consistent top-line delivery in Beauty, even in an overall weak demand environment.

Citi On Swiggy

• Citi has initiated a ‘buy’ rating on Swiggy, with a target price of Rs 480.

• The company has significantly improved its gameplay, and its long-term growth outlook in food delivery and quick commerce is robust.

• Swiggy’s platform and first-mover advantage in quick commerce position it well for future growth.

• Citi expects Swiggy to focus on market share through 2025, with profitability expected to follow in 2026.

Brokerages On Eicher Motors

Citi

• Citi has maintained a ‘buy’ rating on Eicher and increased the target price to Rs 6,050 from Rs 5,350 per share.

• The third quarter results showed a slight miss in standalone Ebitda, but other income helped boost PAT. VECV showed a robust performance.

• Citi has raised the valuation multiple due to better volume prospects.

• The focus is clearly on growth, with Royal Enfield expected to maintain its dominant position in the market.

• Expenses could remain elevated in the near term.

Morgan Stanley

• Morgan Stanley has maintained an ‘underweight’ rating on Eicher and raised the target price to Rs 3,855 from Rs 3,655.

• The third quarter results were weaker than expected, with Ebitda missing estimates due to a weaker product mix and higher promotional and launch expenses.

• Morgan Stanley believes that focusing on growth over margins is the right strategy for the company.

• The stock is pricing in high growth and high margins but achieving both could be challenging.

Bernstein India Quant Strategy

• Bernstein has maintained a cautious outlook on India since Q4CY24.

• They have kept their 2025 market outlook, with expectations of a recovery in the second half of the year.

• Bernstein does not see a clear inflection point yet, to add more risk to portfolios.

• Their preference remains for low-volume stocks, recommending avoidance of high-volume names.

• While valuations are less stretched, the rising equity risk premium and ongoing downgrade cycle present challenges.

• The consumer discretionary sector is not showing any signs of a positive shift in the earnings cycle.

• The auto sector has low ownership and could present potential opportunities.

Citi On Varun Beverages

• Citi has maintained a ‘buy’ rating on Varun Beverages, but has lowered the target price to Rs 750 from Rs 800.

• The company’s fourth quarter performance is in line with expectations, and its growth drivers remain intact.

• The growth outlook for India remains strong, and international expansion is underway, particularly in South Africa and new territories.

• The performance of the business in India during the summer season will be a key factor to watch for the stock.

• Varun Beverages remains a top pick within the consumer staples sector.

Citi On Hindalco

• Citi has maintained a ‘buy’ rating on Hindalco with a target price of Rs 725.

• Novelis’ third quarter Ebitda per ton was at a two-year low, but fourth quarter is expected to be in-line with second quarter of this financial year.

• Most of the concerns around Hindalco are likely priced in, Citi said.

• They see potential upside in LME prices in H2CY25 and are optimistic about Novelis’ efforts to diversify scrap inputs.

• India’s costs are expected to fall due to alumina expansion and captive coal.

Morgan Stanley On Apollo Hospitals

• Maintained an ‘overweight’ rating on Apollo Hospitals with a target price of Rs 8,159.

• The company’s third quarter performance was in-line with estimates.

• Apollo has 7,996 operating beds and plans to add 3,512 beds across 11 locations over the next three to four years, starting in FY26.

• Apollo is building a unique healthcare platform and has significant potential for consolidated ROCE expansion.

Morgan Stanley On Grasim

• Maintained an ‘equal-weight’ rating on Grasim, with a target price of Rs 2,975.

• The company’s third quarter Ebitda missed expectations, but there was good traction in the paints segment.

• Cellulose volumes were flat year-on-year and slightly below estimates, while caustic soda sales volumes grew 1% year-on-year.

• Revenues from the paints and B2B businesses were Rs 1,600 crore, above the estimated Rs 1,200 crore, with the paints business likely contributing Rs 700-800 crore.

Jefferies On Indian Hotels

• Jefferies has maintained a ‘buy’ rating on Indian Hotels, with a target price of Rs 1,000.

• The company has unveiled the long-awaited Taj Bandstand, a 330-room hotel that will add to IHCL’s strong 1,500+ luxury room inventory in Mumbai.

• The two hotels (Taj Lands End and Taj Bandstand) will complement each other and benefit from business and tourism.

• This move will also unlock a long-stuck project on the company’s balance sheet.

Morgan Stanley On Oil India

• Maintained an ‘overweight’ rating on Oil India and raised the target price to Rs 625 from Rs 596.

• Oil India is less dependent on oil prices and is seen as an undiscovered play on the rising demand for natural gas, particularly as power demand for Gen AI increases.

• Morgan Stanley sees a $4 billion opportunity, with earnings expected to grow 50% over the next three years.

• They estimate 12% CAGR production growth and 16% earnings growth over financial year 2025-2028.

• The creation of a natural gas market in the northeast of India should structurally change Oil India’s ROE profile to above 18%.

JPMorgan On Escorts Kubota

• JPMorgan has maintained an ‘underweight’ rating on Escorts Kubota with a target price of Rs 2,745.

• The third quarter tractor margin trajectory is weaker than that of peers.

• Agri revenues and the construction business margins surprised positively.

• Despite a 5% miss on revenues, the construction business saw improvements in both quarter-on-quarter and year-on-year margins.

. Read more on Markets by NDTV Profit.Further, Bernstein maintained a cautious outlook on India with low-volume stocks as their preference.  Read MoreMarkets, Business, Notifications 

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