LG Electronics, the Oil & Gas sector, the Auto sector, Phoenix Mills, and Eternal are drawing brokerage commentary today.
Analysts are providing insights on company-specific developments, sector trends, and the potential impact of government policies like the GST cuts. Here are the key analyst calls to watch out for today:
Brokerages on LG Electronics
Motilal Oswal
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Initiates coverage with a target price of Rs 1,800.
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It holds a leadership position with high industry growth potential.
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Premiumisation and localisation are expected to drive profitability.
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Expects LG to trade at higher multiples given its strong return ratios.
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Consistently generated operating cash flows over Rs 154 billion.
Ambit
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Initiates coverage with a Buy rating and a target price of Rs 1,820.
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Export could be a key component with the new Sri City plant doubling capacity.
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Increased localisation and premiumisation are expected to drive margin expansion.
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GST cuts are expected to help growth revival.
Nomura
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Initiates Buy with a price target of Rs 1,800.
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Focus on mass premiumisation, exports, and business-to-business initiatives to drive growth with improving profitability.
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India’s demographics provide structural growth visibility for large appliances. The firm estimates Ebitda margins will improve from 12.8% in FY25 to ~14.1% in FY28F.
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This improvement is led by a better mix, operating leverage, and localisation.
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Expects the company to trade at the mid-point of the trading band of 30-45x.
CLSA on India Oil and Gas Sector
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Profits After Tax for IOC, BPCL, and HPCL are expected to jump sharply due to LPG subsidy reimbursement.
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Reliance Industries Ltd., is expected to see steady quarter-on-quarter growth across segments.
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Retail and Jio segments for RIL remain strong.
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ONGC and Oil India’s profits are expected to rise on higher dividend income.
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Gas demand is up 3% QoQ.
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IGL is the only player expected to see margin improvement.
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The overall sector shows selective improvement amid the rupee fall and higher crude prices.
UBS on India Autos: GST 2.0 To Fuel or Fizzle Demand?
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The GST boost could not have come at a better time given sluggish demand in April–July.
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Channel checks suggest consumers want to trade up towards premium products.
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However, CAFE norms and ABS mandates may erode the GST cut benefit.
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Prefers premiumisation plays like M&M, TVS, and Hyundai.
UBS on Indian Consumer Durables
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GST cuts are boosting LED panel demand.
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Room Air Conditioner (RAC) demand is still below expectations.
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Samsung is pushing premium products, while LG is focusing on entry-level products.
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Aggressive pricing is not sustainable due to competition
Macquarie on Eternal
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Maintains an Underperform rating with a target price of Rs 200.
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Expects rising competition to dent consensus forecasts.
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Believes consensus overstates the turnaround and sustainability of profits.
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Sees a risk of reversal in market capitalisation.
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Notes limited margin of safety for shares.
Citi on Phoenix Mills
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Maintains a Buy rating with a target price of Rs 1,875.
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Q2FY26 Business Update: Consumption growth was in line with expectations.
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Overall consumption growth of -13% year-on-year is largely in line with expectations.
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Consumption growth in PMC Bangalore and Pune was flat YoY; trends are to be monitored going forward.
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Believes the company is well positioned to benefit from continuing organic consumption growth of 7 to 9% in its mature malls and the addition of new malls.
. Read more on Markets by NDTV Profit.LG Electronics, the Oil & Gas sector, the Auto sector, Phoenix Mills, and Eternal are drawing brokerage commentary today. Read MoreMarkets, Business NDTV Profit