Analysts Recommend Diverse Sectors, Swiggy Ratings Mixed
Financial analysts have identified investment prospects in diverse sectors, including quick commerce, chemicals, auto parts, energy, consumer goods, renewables, steel, and FMCG. They’ve issued new recommendations for companies like Swiggy, SRF, Colgate-Palmolive, Cyient, HPCL, Adani Green, Sagility, Havells India, Balkrishna Industries, Jindal Stainless, KEI Industries, and JSW Infra.
Citi has maintained a “Buy” rating on Swiggy, cutting its target price to Rs 330 from Rs 390, citing decent core food delivery and the need to improve user retention and take-rates in Instamart.
Jefferies has also maintained a “Buy” rating on Swiggy, cutting its target price to Rs 330 from Rs 435, stating that a reduction in quick commerce losses is essential for true value discovery, as EBITDA losses have swelled to a three-quarter high.
UBS has maintained a “Buy” rating on Swiggy with a target price of Rs 375, noting that while quick commerce losses continue to expand, there are early signs of growth recovery, and the overall results were weaker than expected.
Macquarie has maintained an “Underperform” rating on Swiggy with a target price of Rs 230, believing that negative cash flow and high competition in quick commerce highlight Swiggy’s economic challenges, and that growth continues to require pricing and network investment.
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BofA has maintained a “Neutral” rating on Swiggy, cutting its target price to Rs 245 from Rs 275, citing a weak Q2 print, expanding losses, and cutting numbers, with soft quarter results and disappointing quick commerce growth.
Chemicals Sector Outlook
Citi has maintained a “Sell” rating on SRF, cutting its target price to Rs 2225 from Rs 2575, citing weaker chemicals margins and the expectation that refrigerant gas pricing tailwinds will fade.
Jefferies has maintained a “Hold” rating on SRF, hiking its target price to Rs 2640 from Rs 2540, noting that while agchem challenges continue, there is an interesting strategic pivot to high-growth industries like semiconductors and energy storage.
Jefferies has maintained a “Buy” rating on Sagility, hiking its target price to Rs 59 from Rs 54, citing consistent earnings delivery and attractive valuations, with a strong growth outlook and healthy order bookings.
Kotak Securities has maintained an “Add” rating on Cyient, hiking its target price to Rs 1350 from Rs 1100, citing a strong quarter that lends credibility to the turnaround, with a material beat on growth and margin estimates.
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GS has maintained a “Buy” rating on Jindal Stainless, with a target price of Rs 1000, citing inline EBITDA and sales volume picking up quarter-over-quarter.
Jefferies has maintained a “Buy” rating on Colgate-Palmolive, cutting its target price to Rs 2000 from Rs 2650, stating that the company reported double-digit topline growth, partly due to GST transition base.
Citi has maintained a “Sell” rating on Colgate-Palmolive, cutting its target price to Rs 1575 from Rs 2000, noting that underlying growth remains modest and reinvestment weighs on margins.
Renewable Energy Growth
Jefferies has maintained a “Buy” rating on Adani Green, with a target price of Rs 1695, citing Q2 EBITDA rose 46% YoY driven by 33% YoY generation growth.
BofA has maintained a “Buy” rating on KEI Industries, with a target price of Rs 6300, citing strong growth and margins towards the lower end of guidance, with growth intact.
