Overseas brokerages have turned cautious on a number of well-known Indian firms, cautioning that near-term dangers may weigh on efficiency regardless of their robust fundamentals. Jefferies, Morgan Stanley, Citi, and Bernstein stories have talked about cautious to detrimental views on three heavyweight counters, pointing to slowing progress, weaker demand tendencies, and rising credit score dangers.
Jefferies, Citi minimize targets for Petronet LNG after weak Q2 present
Jefferies and Citi have downgraded their outlooks on Petronet LNG following a weaker-than-expected September-quarter efficiency. Jefferies has reiterated its ‘underperform’ ranking and diminished its goal worth to Rs 245 from Rs 265, whereas Citi maintained a ‘promote’ name, trimming its goal to Rs 260 from Rs 285.
Each brokerages flagged decrease throughput volumes and the affect of use-or-pay provisions as key drags on profitability. Whereas the administration stays optimistic a few restoration forward, analysts say demand uncertainty and international LNG pricing pressures are more likely to cap near-term upside.
Petronet LNG — collectively promoted by GAIL, IOCL, BPCL, and ONGC — stays the nation’s largest LNG importer and regasification firm. Analysts consider muted international demand and elevated value provisions proceed to weigh on margins.
Morgan Stanley sees valuation threat in Bajaj Auto
Morgan Stanley has retained an ‘underweight’ ranking on Bajaj Auto, citing valuation considerations whilst the corporate delivered robust Q2 outcomes.
Web revenue for the quarter rose 23.6 per cent year-on-year to Rs 2,479 crore, whereas income elevated 13.7 per cent to Rs 14,922 crore. EBITDA stood at Rs 3,051.7 crore, sustaining a 20.4 per cent margin.
The brokerage raised its goal worth barely — from Rs 8,075 to Rs 8,137 — however warned that export weak spot and flat home demand may limit near-term efficiency. Analysts added that after a pointy run-up, the inventory might have a interval of consolidation earlier than long-term worth turns into enticing once more.
Bernstein flags asset high quality considerations in Bajaj Finance
Bernstein has maintained an ‘underperform’ ranking on Bajaj Finance, setting a goal worth of Rs 640, whereas the inventory trades close to Rs 1,085. Although AUM grew 24 per cent year-on-year and revenue after tax rose 23 per cent, the brokerage highlighted rising stress within the mortgage e book.
Gross non-performing belongings (NPAs) elevated to 1.24 per cent, whereas internet NPAs rose to 0.60 per cent. Incremental NPLs touched round 2 per cent, and mortgage losses widened to 205 foundation factors, exceeding firm steerage for a second straight quarter.
Bernstein famous that MSME mortgage progress slowed to 18 per cent from 29 per cent YoY, with unsecured MSME disbursals down almost 25 per cent. The agency stated rising credit score prices and mortgage high quality stress may restrict margin stability going ahead.
