Stock Recommendations Today: Various brokerages have shared their insights on stocks to watch. Citi has updated its outlook on Avenue Supermarts Ltd., the parent company of DMart, while DAM Capital is optimistic about Petronet Engineering Construction Ltd. Jefferies has also provided its top picks in the electricals sector. Here’s a breakdown of what analysts are saying about key stocks today:
Citi’s Outlook on Avenue Supermarts
Citi has maintained a ‘sell’ rating on Avenue Supermarts (DMart’s parent company), with a target price of Rs 3,500, suggesting a potential downside of 3.1%. While the company’s growth rate is expected to increase, partly driven by store expansion, Citi is cautious about its margin outlook. Revenue per store has seen a 2.7% compound annual growth rate (CAGR) over the last five years.
However, Citi advises caution due to rising competition, especially from quick commerce. The brokerage believes that throughput could continue to be impacted due to factors such as an unfavorable product mix, new store openings in smaller towns, and the growing competitive pressure from quick commerce services.
Jefferies on ONGC
Jefferies has reiterated its ‘buy’ rating on ONGC, although it has reduced its target price to Rs 375 from the previous Rs 410, indicating a potential upside of 58%. ONGC’s stock has experienced a 30% correction, largely due to a 10% decline in crude oil prices. Jefferies views the recent correction as a good buying opportunity.
The brokerage also believes that earnings per share (EPS) will benefit from an improved earnings outlook for Hindustan Petroleum Corporation Limited (HPCL). Recent regulatory auctions are expected to positively impact profitability. A key trigger for ONGC’s performance is the expected ramp-up in production from the KG basin, which could significantly contribute to earnings in the final quarter of this year or the first quarter of fiscal year 2026.
DAM Capital on Petronet LNG
DAM Capital has maintained a ‘buy’ rating on Petronet LNG, with a target price of Rs 385, indicating a potential upside of 17%. According to the latest report, the Petroleum and Natural Gas Regulatory Board (PNGRB) does not have authority over tariff regulations, meaning Petronet LNG will not face any tariff reductions until 2028, when its contracts are up for renewal. Starting in 2029, terminal contracts are expected to see a 10% tariff cut.
The company is well-positioned to benefit from India’s expected rise in LNG demand, projected to reach 45 million tonnes per annum (MTPA) by fiscal 2030. Petronet’s expansion at its Dahej terminal, from 17.5 MTPA to 22.5 MTPA, will further boost its growth. DAM Capital forecasts that Petronet LNG will see an EBITDA growth rate of 12% from fiscal 2025 to fiscal 2027.
Jefferies on Electricals
Jefferies has updated its top picks in the electricals sector. It has raised its target price for Amber Enterprises to Rs 8,840, up from Rs 6,460, reflecting an upside potential of 17%. The brokerage has maintained an ‘underweight’ stance on Dixon Technologies (India) with a target price of Rs 12,600. Additionally, it has maintained a ‘hold’ rating on Kaynes Technologies with a target price of Rs 6,950 and a ‘buy’ rating on Syrma SGS Technology, with a target price of Rs 730.
Jefferies is optimistic about the electrical manufacturing services (EMS) sector, noting that EMS players have seen impressive stock returns of 135-180%, outpacing broader market indices. The brokerage is particularly positive on backward integration and the components theme and expects a 30% compound annual growth rate (CAGR) in earnings per share (EPS) between FY24 and FY26.
Nomura on EMS and Consumer Durables
Nomura has retained its ‘buy’ ratings on several key stocks in the EMS and consumer durables sectors. It has set a target price of Rs 22,256 for Dixon Technologies, suggesting a 24% upside potential. The firm has also kept ‘buy’ ratings on Voltas, with a target price of Rs 2,142 (17% upside), and Crompton, with a target price of Rs 460 (23% upside). Nomura expects macroeconomic tailwinds in the EMS sector to drive strong growth, although growth in most consumer durable segments is expected to slow down.
For fiscal 2026, the brokerage anticipates some normalization in growth for air conditioners (ACs), while other segments will see more modest growth. Nomura believes that India’s electronics production could grow at a 25% CAGR from FY24 to FY30, driving strong revenue growth for EMS players. It expects Dixon to report a revenue growth of 61% in FY26, largely driven by a ramp-up in mobile volumes.
My name is Akash Yadav, and I am passionate about the world of stock market trading. With over three years of hands-on experience in trading, I have gained a wealth of knowledge and insights into the ever-evolving financial markets.
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