UBS has downgraded Eicher Motors to ‘neutral’ from ‘buy’ with a revised price target of Rs 5,650 (+14%) from Rs 5,950 earlier. In the Oct-Dec quarter, the two-wheeler major missed margins by a significant gap. Analysts said that its margin miss was driven by higher launch expenses, more marketing during the festive season and a weaker mix. Also, Eicher’s share price has significantly outperformed the two-wheeler pack since March 2024, and its premium to other 2W OEMs has risen significantly and is now in line with the past-five-year mean.
Nirmal Bang Institutional Equities has a ‘buy’ recommendation on Apollo Tyres with a target price of Rs 529 (+27%). Analysts said their positive stance on the stock hinged on improving margin and domestic volume outlook, the company’s decision to enter new export markets, its outperformance in the EU and moderate capex intensity, and overall improving return ratios.
Nuvama has a ‘buy’ recommendation on Escorts Kubota with a target price of Rs 3,800 (+21%). Analysts expect a revenue CAGR of 15% over FY25–27E, led by Global Kubota (GK)’s support and domestic tractors’ growth. GK’s support is likely in the form of opening of export opportunities and product development support.
Axis Securities has a ‘buy’ recommendation on Aurobindo Pharma with a target price of Rs 1,500 (+31%). Analysts feel revenue increases in European, the growth markets, and ARV segments were offset by declines in the US and API segments. The company has allocated Rs 7,000 crore in capex over the past two years, focusing on areas such as Biosimilars and Pen-G (API). The company’s future valuations will largely hinge on the return on invested capital generated from this significant investment.
Emkay Global Financial Services has a ‘buy’ recommendation on Nalco with a price target of Rs 275 (+505). Analysts said Nalco posted a solid quarterly performance, with the earnings beat led by higher alumina export volumes, while benefiting from elevated alumina prices. They said that the progress on the alumina refinery project has slowed, with the company delaying it by three months. For Q4, despite the recent correction in alumina prices, we expect Nalco to deliver a strong performance given the one-month lag in price realizations as well as better averaging effect. On balance, our Nalco investment case remains well in shape and we see the recent correction as an entry opportunity into the stock.