Latest news with #MarketsDesk
Business Upturn
13 hours ago
- Automotive
- Business Upturn
HSBC raises target price on Eicher Motors but maintains hold as export outlook remains unclear
By Markets Desk Published on June 20, 2025, 07:32 IST HSBC has maintained a 'Hold' rating on Eicher Motors, even as it raised the target price to ₹5,600 from ₹5,300, citing sustained growth momentum from Royal Enfield's (RE) premium segment offerings and stable competitive dynamics. However, concerns over the company's export trajectory remain a limiting factor in driving further upside. According to HSBC, the competitive intensity in the domestic two-wheeler market continues to be benign, particularly in the mid-to-premium motorcycle space where Royal Enfield commands a dominant share. The bank sees structural tailwinds for RE from its successful 350cc platform refreshes, along with strong reception to models like the Hunter, Super Meteor, and Himalayan 450. On the export front, HSBC acknowledged pockets of stabilisation in Latin America, a key geography for RE's overseas business, but noted that overall visibility on international growth remains unclear. Slowing demand in mature Western markets and currency pressures in Africa and Southeast Asia continue to weigh on near-term expectations. At its current valuation, the stock is trading at 26x FY27 estimated earnings, which HSBC views as fair, considering the company's robust brand positioning but limited near-term triggers. The brokerage believes that while RE's domestic momentum can continue, upside beyond this level will require a clear revival in exports and operating leverage from new geographies. Ahmedabad Plane Crash Markets Desk at
Business Upturn
13 hours ago
- Business
- Business Upturn
RBI eases project finance rules, lending boost seen for banks and nbfc sector; IREDA, REC & PFC in focus
By Markets Desk Published on June 20, 2025, 07:29 IST In a major relief for banks and non-banking financial companies (NBFCs), the Reserve Bank of India (RBI) has significantly eased its proposed prudential norms on project finance. According to Citi Research, the final directions—effective October 1, 2025—are far more lender-friendly than the draft guidelines issued earlier, particularly in terms of general provisioning norms. Under the final framework, general provisioning requirements for project finance exposures—both infrastructure and non-infrastructure (including commercial real estate or CRE)—have been substantially reduced. For loans in the construction phase, the provisioning has been capped at 1.00% (1.25% for CRE), a significant relaxation from the earlier phased-in draft requirement of 5% by FY27 (2% in FY25, 3.5% in FY26, 5% in FY27). For exposures in the operational phase (i.e., post commencement of principal and interest repayments), provisioning has been scaled down to: 1.00% for CRE 0.75% for CRE-RH (residential housing) 0.40% for all other categories This is markedly softer than the earlier suggested 2.5% in the draft guidelines. For projects where the Date of Commencement of Commercial Operations (DCCO) has been deferred but remains classified as standard, the RBI has prescribed additional specific provisions. These are set at 0.375% per quarter for infrastructure loans, and 0.5625% per quarter for non-infra loans, including CRE and CRE-RH segments. Citi believes this shift removes a major overhang for lenders, particularly public sector banks and infrastructure-focused financial institutions like PFC, REC, and IIFCL. The biggest concern post the draft circular was a sharp pullback in long-gestation project lending owing to the capital burden posed by high provisioning. That risk now appears largely mitigated. By easing the regulatory cost of lending to large, long-term projects, the RBI has significantly improved the economic viability of project finance, which is essential for funding India's infrastructure ambitions. The move may also unlock higher credit growth in the infrastructure segment in FY26 and beyond. Ahmedabad Plane Crash Markets Desk at
Business Upturn
13 hours ago
- Business
- Business Upturn
Nuvama bullish on Aurobindo Pharma, sees 15% profit CAGR through FY27
By Markets Desk Published on June 20, 2025, 07:30 IST Nuvama Institutional Equities has reiterated a 'Buy' call on Aurobindo Pharma, with a target price of ₹1,460, as it sees the stock poised for a strong recovery led by new product launches, capacity expansions, and normalization of regulatory and operational issues. The brokerage notes that Aurobindo has invested over ₹10,000 crore in recent years toward growth-oriented assets including its Pen-G API facility, injectable plants, and biologics and peptide capabilities. While these investments have temporarily diluted return ratios, Nuvama believes they position the company strongly for medium- to long-term growth, especially in high-margin, non-oral dosage categories. Key triggers that could unlock value in FY26–27 include: Resumption of production at its Pen-G unit , which could improve vertical integration and cost competitiveness. New launches in Europe from the company's Chinese facility. Ramp-up of injectables business through the Eugia-5 plant and normalization of supply issues from Eugia-3. Volume growth in oral solids, which continue to be the company's bread and butter in regulated markets like the US. Nuvama is building in a revenue CAGR of 7%, EBITDA CAGR of 8%, and PAT CAGR of 15% over FY25–27. Despite the recent recovery in pharma stocks, Aurobindo continues to trade at 13.9x FY27E EPS, which represents a 16% discount to its 5-year historical average valuation. This makes the stock attractive not only from a growth and margin recovery standpoint but also on relative valuation terms, especially considering that many of its operational headwinds now appear to be easing. Aurobindo has also stepped up its focus on specialty and complex generics, including biosimilars, peptides, and depot injections, which can provide earnings durability beyond FY27. The company's recent USFDA approvals and steady ANDA filings also indicate improving regulatory momentum. Nuvama's thesis remains that execution of these strategic pivots—especially monetization of recent capex—could drive a meaningful re-rating of the stock over the next 6–8 quarters. Ahmedabad Plane Crash Markets Desk at
Business Upturn
3 days ago
- Business
- Business Upturn
Motilal Oswal downgrades BSE after NSE gets Tuesday as expiry day, cuts target price for the stock
By Markets Desk Published on June 18, 2025, 08:10 IST Motilal Oswal maintains its 'Neutral' rating on BSE, cutting its target price to ₹2,300, after SEBI mandated a shift in expiry days—assigning Thursdays to BSE and Tuesdays to NSE, effective from September 1, 2025 . MO expects the shift to undermine BSE's index options average daily premium turnover significantly. It estimates a 350–400 basis point drop in market share, eroding premium ADTV to ₹137 billion in FY26 (from ₹155 billion) and ₹157 billion in FY27 (from ₹190 billion). This led the brokerage to cut earnings by 9% for FY26 and 12% for FY27 . Trading at 53x FY27E P/E, BSE is priced substantially above its historical average and global peers, prompting caution until the fiscal impact stabilizes. SEBI's latest directive aims to standardize weekly expiry days—Tuesday or Thursday—for all equity derivatives to prevent expiry clustering and reduce speculative excesses . The exchanges have until June 15 to finalize their preferred expiry day and must adjust monthly benchmark expiries accordingly . BSE has confirmed that while new contracts from September will follow the new expiry schedule, existing weekly expiries remain unchanged until August 31, with long-dated contracts being realigned over time. Ahmedabad Plane Crash Markets Desk at
Business Upturn
5 days ago
- Business
- Business Upturn
JPMorgan downgrades HDFC AMC stock to ‘Neutral'; sees limited near-term triggers after sharp rally
By Markets Desk Published on June 16, 2025, 07:54 IST JPMorgan has downgraded HDFC Asset Management Company (AMC) to 'Neutral' with a target price of ₹5,000, citing limited upside after the stock's sharp 33% rally in the past three months, outperforming the NIFTY's 10% gain. The brokerage acknowledged that equity inflows into the mutual fund industry have remained strong over the past few years, supported by benign inflation, steady GDP growth, and accommodative monetary policy. However, JPMorgan noted a slowdown in equity inflows in the year-to-date period, which could weigh on earnings momentum. It pointed out that while SIP (Systematic Investment Plan) flows remain resilient and are a medium-term structural driver for HDFC AMC, these positives appear to be fully priced in, with the stock currently trading at FY26/FY27 P/E of 37x/33x. Ahmedabad Plane Crash Markets Desk at
