Stock Recommendations Today: Trent, BSE, Voltas On Brokerages' Radar

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Trent Ltd., BSE Ltd., and Voltas Ltd. were among the top companies on brokerages' radar on Wednesday.According to Morgan Stanley, Trent's management remains confident of achieving its ambition mentioned in 2023, which was to grow 10x bigger in the not too distant future, while balancing profitability.In addition, Goldman Sachs has cut BSE's target price to Rs 2,430 from Rs 2,490 due to moving expiry day, which could result in BSE losing 3 percentage points of market shareNDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Wednesday.Morgan Stanley On Avenue Supermarts Maintain Underweight with Target Price of Rs 3,260First major store opening in the state of Uttar Pradesh, which is India's most populous stateDMart follows an ownership model for its retail storesFollows a cluster-based approach for store expansionView this opening in state of UP as a positive stepWould closely track the company's pace of expansion in the state, where the opportunity to open stores remains largeJefferies On Adani PortsMaintain Buy with Target Price of Rs 1,700Targets to be among the world’s largest integrated transport utility companies by 2030Leveraging back to 2.2-2.5x Net D/Ebitda target by FY29 suggests Rs 25,000 crore funds over FY26E-29E for acquisitions/equity actionsAnnual report reiterates focus on having a strong presence in South East Asia- India-Middle East-Africa CorridorMorgan Stanley On TrentMaintain Overweight with Target Price of Rs 6,359Management remains confident of achieving its ambition mentioned in 2023Aims to grow 10x bigger in the not too distant future, while balancing profitabilityExpect the company to achieve 10x its FY23 revenues by FY32Focus remains on the quality of its store portfolio, and increasing store density in proximate marketsCompany is expanding into under penetrated markets to increase revenue growth and share in the micro-marketTrent was free cash flow and net cash positive in FY25Return ratios improved to record levels aided by better profitability and improving asset turnsCiti On Trent Maintain Buy with Target Price of Rs 7,600200 store expansion per year likely doable ensuring quality/experience, economics and locationNew stores reach very high throughput/maturity within 12-24 months of openingMajority of the SSSG for Trent is volume driven as Trent does not take price hikeValue retail is not a zero-sum game and there will be multiple winnersTrent barely consolidate/closes store due to store economicsBofA On AviationIndia: Geopolitics & AI 171 to weigh on the summer peakIndian air traffic growth averaged +8% YoY in H1 June showing some lingering impacts from geopolitical booking cancellationsCan’t rule out the muted summer peak traffic growth continuing into H2 JuneTragic loss of Air India 171 likley to have some impact on travel demand through H2 JuneGoldman Sachs On Larsen & Turbo Maintain Neutral; Hike Target Price to Rs 3,400 from Rs 3,260Expect a good quarter; all eyes on international executionExpect healthy double digit growth in revenue, Ebitda and PAT driven off a strong order bookExpect 20 basis points improvement in core Ebitda margin at 8% vs 7.8% in Q1FY25Will closely look at commentary on Middle East given the increasing geopolitical uncertainty in the regionBofA Global Fund Manager SurveyInvestor sentiment recovers to pre-Liberation Day “Goldilocks bull” levels as trade war & recession fears abateBofA Global FMS investor sentiment improves to 3-month highCash level drops to 4.2% versus 4.8% in April, but not worrying lowFund Manager Survey most underweight the US dollar in 20 years3 most contrarian trades based on FMS sentiment are long US dollar, short gold; long US, short EU stocks; long consumer, short banksGoldman Sachs On BSEMaintain Neutral; Cut Target Price to Rs 2,430 from Rs 2,490Moving expiry day to Thursday, BSE could lose 3 percentage points of market shareCut BSE’s FY26 EPS by 2%, but FY27/28 EPS estimates are largely unchangedRisk-reward seems balanced to usUBS On BSEMaintain Buy with Target Price of Rs 2,633New expiry day can impact BSE's market share gain momentumChange in expiry mathematically can impact 15% of volumes on loss of one trading day for BSEWe expect gain in volumes on non-expiry day for BSE negating some loss of volumes due to change in expiry dayJefferies On BSE Maintain Hold with Target Price of Rs 2,900Expiry day shift may impact vols a tad; Scope to mitigate impactOur interactions with mkt participants indicate a 5-10% impact on vols in the near-term and build-up thereafterBSE's ability to build liquidity in longer-term contracts can offset this impactImplementation of common contract note can aid mkt share in the cash segmentTrim EPS est by 1-2% to factor tad lower volumesNomura On IndusInd BankUpgrade to Buy from Neutral; Hike Target Price to Rs 1,050 from Rs 700Navigating the storm, charting a course for revivalLegacy issues addressed; RoA to improve to 1% by FY27FClear intent to “start FY26F on a clean slate” are crucial positive signsRBI’s potential approval for the promoter to raise stake in the bank could allay some investor concernsJefferies on NykaaMaintain Buy with Target Price of Rs 240Nykaa mgmt presented a positive outlookBPC is a compelling opportunity and Nykaa aims to grow ahead of the online industry despite market leadershipFashion plays in a niche market and management remains confident on its long term potentialOverall margins should expand over the medium-term but growth is a priorityWellness is also expected to gain management focusCiti On HexawareInitiate Buy with Target Price of Rs 980Well positioned anchored by solid mgmt. team, strong client relationships, healthy deal pipeline and entry in new geographiesSee decent growth, stable margin outlook, cash generation and lower valuationsConsistent execution on growth – revenue gap vs. peers to narrowSuccessfully navigating challenges in some of the top clientsAny near-term correction could make it relatively attractiveHexaware is the only Buy in the sector under coverageUBS On VoltasMaintain Buy with Target Price of Rs 1,725Early monsoon impacted sales; but priced inPricing not seeing a disruption but higher value added being offeredDespite weak demand capex plans on track; VoltBek JV performing wellRAC to remain a fastest growing category albeit a non linear growthNuvama On VoltasMaintain Hold; Cut Target Price to Rs 1,190 from Rs 1,250Voltas highlighted:-20–25% YoY dip in RAC volumes industry-wide and a similar trend for itselfWitnessed pickup in June, particularly in northChannel inventory of six–eight weeksFreebies (installation, warranty, etc) being rolled out by playersVoltas retained its medium-term target of gaining market shareExpects international EMP to stay weak (no new orders in FY25) while domestic shall see a pickup in order inflows and execution in FY26E/27EStock Market Today: All You Need To Know Going Into Trade On June 18. 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