Hot stocks: Brokerage view on RIL, M&M, ICICI Bank, Ambuja Cements and IndiGo

Jefferies on Reliance: Buy | Target price: Rs 3,580

Jefferies maintained a buy rating on RIL with a target price of Rs 3,580.

Jio's public listing looks possible in CY2025. Jefferies believes the IPO route will provide better control but the holdco discount needs large retail mobilization. Via the vertical spin-off route, no holdco discount but a lower stake for the owner. Investors favour the spin-off route. Jio could list at a $112 billion valuation, 7- 15% upside to RIL.

Investec on M&M: Buy | Target price: Rs 3,100

Investec has maintained a buy call on M&M with a target price of Rs 3,100.

A strategic tweak in pricing is expected to widen TAM & get ready for model refresh. The management mentioned they are in process of launching a mid-cycle refresh for the product, which probably explains lower wholesales for the past couple of months and the move to clear inventory to make space for the refreshed model. As per management, the demand for XUV700 continues to be robust and the company also increased manufacturing capacity for the product in line with demand forecast.

Axis Capital on ICICI Bank: Add | Target price: Rs 1,370

Axis Capital has downgraded ICICI Bank to add from buy but has hiked the target price to Rs 1,370 from Rs 1,300. Lower NIM leads to a PPOP CAGR of 14% despite healthy loan growth and low opex. Low credit costs getting into the base, PPOP growth to flow to earnings growth. However, Axis Capital believes that current valuations provide limited upside.

Morgan Stanley on M&M: Overweight | Target price: Rs 3,049

Morgan Stanley has maintained an Overweight rating on M&M with a target price of Rs 3,049. The global brokerage firm sees limited EPS impact for M&M on announced price cuts. Thar 5 door launch, tractor pickup, and strong UV volumes in coming months to support outperformance while EV slowdown and hybrid duty cut are key long-term risks for M&M. M&M will continue to remain the fastest-growing PV OEM in FY25. Tractor volumes could improve, and rural recovery is likely in H2.

Nomura on Ambuja Cements: Buy| Target price: Rs 780

Ambuja Cements got a double upgrade to buy from reduce while hiking the target price to Rs 780 from Rs 500. Above-industry volume growth is expected as the company strives towards its 140MT target as it has the highest volume growth in the industry. Another round of inorganic expansion is possible. Ambuja is spreading its wings across the country as the acquisitions provide brownfield optionality. Lower heat consumption and a higher share of green power also result in cost savings.

Morgan Stanley on IndiGo: Overweight | Target price: Rs 5,142

Morgan Stanley has maintained an Overweight call with a target price of Rs 5,142. FY26 will see two large airports coming up, which will further expand the air travel market. The industry is more consolidated now and the business class and international segment has better profit per seat. Morgan Stanley expects flattish yields while inflationary pressures drive a 3% YoY decline in EBITDA in Q1.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)