BROKERAGE RADAR

Goldman Sachs on Vedanta
Initiate Buy with TP of Rs 280; Potential Upside 23%
Attractive commodity exposure to zinc and oil
Strong volume growth across businesses to drive earnings
Expect strong dividend yield of 5% despite growth capex
Zinc price recovery and volume growth to drive stock re-rate

UBS on Axis Bank
Maintain Buy; Raised TP to Rs 765 from Rs 675; Potential Upside 16.5%
Well placed to gain market share in deposits
Asset quality clean-up nearing the end
Expect re-rating as visibility on asset quality improves in H2 and growth accelerates

Nomura on Indian Autos
Delayed festive season to impact growth
Expect MHCVs to report single-digit growth while PVs/2Ws growth to remain flat in August
Floods in Kerala could have an impact on sales
Maruti Suzuki and Eicher volumes could see worse than expected impact

BofAML on ITC
Maintain Buy with TP of Rs 360; Potential Upside 15%
Early checks suggest 3-4% YoY volume growth likely in cigarettes in Q2
Expect healthy show in FMCG despite rising competitive intensity
Valuations undemanding; Structural benefits to drive long-term growth

Citi on Petronet LNG
Maintain Buy; Raised TP to Rs 290 from Rs 285; Potential Upside 24%
Mgmt. assures minimal impact from upcoming terminals
Exploring investment opportunities in LNG terminals; Open to higher dividend
Buy given potential upside to earnings and attractive valuations

JPMorgan on PNB Housing Finance
Maintain Underweight with TP of Rs 1050; Potential Downside 25%
Book risk are contained and they do need monitoring given the state of real estate market
Near-term catalysts remain on the announced stake sale
Transaction price at will be key; Expect stock volatility to be high

Citi on Pidilite Industries
Maintain Neutral with TP of Rs 1,216; Potential Upside 6%
Pidilite to prioritise growth over margins; Expect margin in the 20-24% band
GST-related gains have been muted so far
Next 6 months will be crucial for gauging inherent demand

Citi on India Financials
NPA recoveries pick up; IND-AS mixed bag for NBFCs
Slippages down and recoveries up
NIMs see pressure; Loan growth led by retail
Expect gradual recovery in asset quality for corporate banks
Private banks and NBFCs to continue to see loan growth as they take share from PSU