Brokerage Radar: Today, before the start of trading on January 13, brokerage firms have released their reports regarding shares of many companies on their radar. Apart from stocks like DMart, Asian Paints, Hyundai Motor, BSE, sectors like financial and life insurance are also included. Due to these reports, shares of these companies remain in focus today. Let us know what is the opinion of the brokerage regarding these shares and what target price they have given to them.
1. Dmart
Brokerage firm Bernstein has given outperform rating to this stock and has a target price of Rs 5800 per share. The brokerage says the company performed better than expected in the December quarter. The decline in EBITDA and PAT margins was primarily due to growth in the grocery segment. The CEO change was suddenly announced, which will be effective from 2026. Same-store sales showed improvement, but this may be seasonal. Limited improvement in same-store sales likely over the next 1-2 quarters. Weakness will continue in the FMCG segment, while the grocery sector will remain the company’s main strength.
Whereas JPMorgan has given neutral rating to DMart and has set a target price of Rs 4150 per share for it. The brokerage says that EBITDA and PAT for the December quarter were below estimates. Margins were impacted due to higher headcount and other expenses. Appointment of Anshul Asawa as the new CEO designate is an important step.
However, Morgan Stanley has given DMart’s stock an underweight rating and has set a target price of Rs 3,260 per share for it. The brokerage says December quarter margins were lower than expected. The intensity of the discounts remains, although the impact has diminished, according to management. Management commentary in recent quarters has raised questions about the growth model.
2. Macquarie’s opinion on the financial sector
The brokerage said it expects better loan growth in FY26. Slight decline in margins and possibility of stable credit costs. Macquarie said that HDFC Bank and ICICI Bank remain his favorite stocks in the banking sector. Whereas in the NBFC segment, he has made AB Capital, PFC, Shriram Finance his favorite shares. In the insurance sector, the brokerage has increased the ratings of LIC and ICICI Lombard from neutral to outperform. On the other hand, it has reduced the rating of SBI Life from outperform to neutral and PB Fintech from neutral to underperform.
3. Hyundai Motors
Brokerage firm HSBC has advised to buy this stock and has kept the target price for it at Rs 2200 per share. The brokerage says it expects to benefit from long-term growth in Indian auto sales. New launches and capacity expansion could accelerate growth in the next 2-3 years. Margins likely to remain stable.
4. Asian Paints
Brokerage firm Macquarie has given this stock an outperform rating. The brokerage said it has revised its EPS estimates and target price due to weakness in demand. The entry of Grasim Paints in the market has had limited impact on it. This stock remains its top pick in the paint sector. After this it likes Kansai Nerolac.
Goldman Sachs has given a neutral rating to this stock and has set a target price of Rs 5,060 per share for it. The brokerage says that the company will benefit from strong growth in India’s equity markets. Increase in the income of listed companies will also strengthen its performance. Possibility of increasing share in the options market. 10% improvement in EBITDA margin and 5% improvement in RoE. The current valuation is in line with its global peers.
6. HSBC’s view on life insurance sector:
The brokerage said that individual APE (Annual Premium Equivalent) growth remained sluggish in the December quarter. The impact of revised surrender norms and weak equity markets was visible. Private insurance companies, which have a higher bancassurance share in individual APEs, were more impacted. In December 2024, SBI Life recorded good growth on a strong base. If the APE growth of private insurance companies remains sustainable, it will be the main catalyst for the sector.
The brokerage has increased the ratings of LIC and ICICI Lombard in this sector from neutral to outperform. On the other hand, it has reduced the rating of SBI Life from outperform to neutral.
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