Jefferies has issued a Hold call on Bank of Baroda, with a target price of Rs250/sh. The profit for Q3 surpassed estimates, supported by lower provisions. However, the 3% NII growth was dampened by a fall in margins, despite a healthy 12% loan growth. The bank’s higher domestic LDR might restrict loan growth due to softer domestic deposit growth. Asset quality remains stable with low credit costs.
HSBC also maintains a Hold call on Bank of Baroda, with a target price of Rs250/sh. Q3 core fee income and improved credit costs offset pressure on NIM. The asset quality was healthy, but EPS estimates for FY25/26/27 have been revised. The outlook for EPS growth remains muted, with a cut to build in further pressure on NIM.
Nomura has a Buy call on GAIL, with a target price of Rs240/sh. The results for Q3 were below estimates due to lower gas marketing and petchem profitability. Gas transmission EBIT was below estimates, while the adjusted gas marketing EBIT was sharply below expectations. The stock trades at attractive valuations of 10x FY27 P/E.
Nomura has upgraded Dr LalPath Labs to a Buy, with a target price of Rs3,315/sh. Q3 revenue was in line, but EBITDA and profit were below estimates. The company now aims to expand its presence in Southern India and has no plans for price increases in the near future. The recent correction in stock price presents limited downside risk.
Nomura recommends a Buy on Dabur, with a target price of Rs625/sh. Q3 results were in line with expectations, and growth is expected to gradually improve as rural markets pick up and urban markets stabilize. HPC sales saw a 5.7% increase, while healthcare was down 1.3% and beverages declined by 10.3%.
On the other hand, MS maintains an Equal weight on Dabur, with a TP of Rs531. They note that rural growth has outperformed urban growth for the fourth successive time, and future margin improvement might be offset by higher advertising costs. Oral care is expected to remain the fastest-growing segment for the company.
JPM maintains a Neutral rating on Dabur, with a TP of Rs550 (down from Rs580). They highlight the challenges in the healthcare and beverage segments and anticipate a gradual pickup in sales ahead. They expect mid-single-digit revenue growth in Q4FY25, with margin expansion in FY26 driven by a favorable base, cost savings, and premiumization.
