Stock Market Live Updates August 16, 2024: Sensex, Nifty open with strong gains; analysts predict continued relief rally

Macquarie on Bharti Airtel

Upgrade to O-P, TP raised to Rs 1630 from Rs 1280

Reaffirm constructive earnings & deleveraging thesis

See ROIC improving from 10% to 18-20% by FY28E

Lift India mobile target EV-EBITDA multiple to 12.5x (from 11.0x)

Base case

Assume further +15%/10% mobile increase for FY26-27e (Rs205 in FY24 to Rs290-300 FY27e), albeit with only mild subscriber growth (2%)

See Co’s India business generating US $6-7bn of operating FCF in FY26-28E, more than twice avg in FY22-24

Macquarie on Indus Tower

U-P, TP Rs 310

While clarity on tenancies has improved post Vodafone-Idea fund raise, rent erosion & change in competitive dynamics are headwinds

Expect lacklustre revenue/EPS CAGRs of 5% over FY24-27E, below consensus est.

Catalysts

Positives: Dividend re-instatement, share buyback, repayment of pending dues by Vodafone-Idea.

Negatives: Rent renewals at discount, VI market share erosion, improved competitiveness of peer ATC

JPMorgan on DLF

Overweight Call, Target Raised To Rs 1,000

Believe Co Will Surpass A Coveted $1bn Operating Cash Flow At Group Level In FY25

Co Riding A Strong Sales Cycle & Compounding Of Free Cash At Its Rental Business

This Opens Up Significant Strategic Flexibility At Group Level On Acquisitions

See Upside To Pre-Sales, Margin & Cash Flow In FY25

HSBC on Ola Electric

Initiate Buy, Target Rs 140

Despite Conservative View On EV Penetration In India Along With Other Uncertainties

Believe Co Is Worth Investing In Given Sustained Regulatory Support

Believe Co Is Worth Investing In On Co’s Ability To Reduce Costs

Believe Co Is Worth Investing In On Positive Risk-Reward In Its Battery Venture

Slower Penetration Of e2-wheelers & Battery Plant Issues Are Key Downside Risks

Jefferies on GMR Infra

Buy Call, Target Raised To Rs 106

Q1 EBITDA Ahead Of Est On 8% Growth In Pax Traffic

Q1 Saw Growth In Non-Aero And Subsidiary Rev

Co Recently Announced Completion Of Simplification Of Holding Structure

Co Recently Announced Re-Opening Of T1 At DIAL (New Terminal)

New Tariff At DIAL Is Expected By Q4FY25

Co Is Focussed On Growing Non-Aero Biz &

With Expanded Capacity, Non Aero Rev/Pax May See A Healthy Jump From Q3/4QFY25

Nomura on IPCA Labs

Buy Call, Target Raised To Rs 1,502

Earnings Ahead Of Estimates; International Revenues Weak

Low Costs & A Sustained EBITDA Recovery At Unichem Were Key Positives

International Sales Were Impacted By Technical & Supply Chain Issues

But, These Issues Should Be Addressed In Due Course

For FY25 Mgmt Now Expects Standalone Rev Growth A 9% (Previously 10.5-11%)

Projects EBITDA Margin At 18.5-19.5% (Previously 18.0-18.5%)

Forecast A 25% Earnings CAGR Over FY25-27

Raise FY25F/26 EPS By 6%/3% On Likely Declined Costs

HSBC on Rainbow Hospitals

Downgrade To Neutral, Target Cut To Rs 1,290 From 1,500

Revenue Was In-Line In Q1; Costs For New Units Lowered EBITDA Margin

Expect Rangebound EBITDA Margin At 30-31%

Growth Drivers Priced In, In Our View

HSBC on Apollo Hosp

Buy Call, Target Rs 7,215

Q1 Hospitals (HCS) Revenue Growth Led By 11% Inpatient Volume Growth

Other Segments Also Grew Mid-Teens

HCS Outlook Intact For 24/7 To Achieve Cost Breakeven In 6-7 Quarters

HCS Gross Merchandise Value (GMV) Picking Up

Launch Of Insurance Service Via 24/7 Platform Will Be Key

MS on Apollo Hospitals

Overweight Call, Target Rs 7,110

Cons EBITDA After 24×7 Cost Was `670 Cr, In-Line With Est & Consensus Est

Net Profit (After Minority Interests) Came In At Rs 310 Cr

Jefferies on Nazara

Downgrade To Underperform Call, Target Rs 720

Q1 Results Missed Estimates Due To Continued Weakness In Most Segments

Unclear Success Rates On Recent Acquisitions, Adds To Execution Risks

Raise FY25/27 Revenue/EBITDA Ests By 24-36%

Cut Earnings By 6-29% To Factor Acquisitions

Nomura on Max Fin

Downgrade To Neutral, Target Rs 1,130

VNB Growth To Lag Peers, Potential Upside Looks Limited

Mgmt Expects New SV Regulations To Impact VNB Margin By 100-200 bps

Believe Max Life Will Have To Deliver Much Higher VNB Growth To Meet Its Guidance

Jefferies on Max Fin

Buy Call, Target Rs 1,270

Saw Weaker VNB Growth Of 3% YoY Despite 31% Rise In Premium

Weaker Mix Dragged Margins

Co Is Benefiting From Ramp-Up Of E-Com, Agency And Integration With Axis

Encouraged To See Mgt Indicate Limited Impact Of New SV Norms On Margin

Limited Impact Of SV Norms This Will Aid Mid-Teen Growth In VNB Over FY26-27