Brokerage firm Nuvama (NUVAMA) has rated the ‘Buy’ on Bajaj Auto, TVS Motors, SBI Cards, CG Power and Petronet LNG in its recent report. According to the report, the quarterly results of these companies have been satisfactory and their performance is likely to improve in the coming months. Brokerage has also released a 12 -month target price for these shares. Let’s know the analysis of this report.
Bajaj Auto (CMP: ₹ 8,643 | Target: ₹ 10,700, Possible Return in next 12 months: 24%)
The Q3Fy25 revenue of Bajaj Auto rose 6% to ₹ 12,810 crore, while Ebitda reached ₹ 2,580 crore. According to the report, the contribution of the company’s EV segment has increased to 22%, which has now become positive. In the coming 3-6 months, exports are estimated to grow more than 20% and 6-8% in domestic sales.
TVS Motors (CMP: ₹ 2,464 | Target: ₹ 3,100, Potential Returns in next 12 months: 26%)
The Q3Fy25 revenue of TVS Motors rose 10% to ₹ 9,100 crore. Ebitda rose 17% to ₹ 1,080 crore, which was slightly better than the estimate. The company is increasing market shares in domestic and international markets and is expected to reach 18% from 17% of FY24 to 18%. The company’s strategy regarding strength and market growth in the EV segment seems positive.
CG Power (CMP: ₹ 618 | Target: ₹ 765, Possible Return In the next 12 months: 24%)
The quarterly performance of CG Power was slightly weaker than the estimate. The company’s Ebitda and NET profit were less than expected, but the revenue was 1.5% higher than expected. Brokerage believes that the company can benefit from detail in the railway and transformer segment. It is planned to increase transformer production capacity to 45,000mVA through new capes worth ₹ 712 crore.
SBI Cards (CMP: ₹ 763.05 | Target: ₹ 885, Potential Returns in next 12 months: 16%)
The credit cost increased by 8% to 9.4% in Q3Fy25 for SBI cards, leaving the profit 30% yoy and 5% QOQ. However, Brokerage believes that the company’s growth remains on the track and the credit cost is expected to fall from Q4Fy25. The company’s loan growth is currently at the level of 13-15%.
Petronet LNG (CMP: ₹ 301.60 | Target: ₹ 397, Potential Returns in next 12 months: 32%)
Q3Fy25 Ebitda of Petronet LNG fell 27% to ₹ 1,200 crore. However, according to the brokerage report, the company’s financial position remains strong and there are growth opportunities in long-term with FY26e P/E 10X and Roe 22%. There is a positive outlook for stock in the long-term.
Overall, Nuwama in his report has a positive outlook with Bajaj Auto, TVS Motors, CG Power, SBI cards and Petronet LNG. Brokerage believes that these companies may perform better in the coming times, given the strong fundamentals and growth outlook of these companies.