After the first quarter results, today 3 big brokerage firms have issued notes on Asian Paints.
The management has made it clear that the results have not been affected due to increased competition, while margins have come under pressure due to sluggish demand.
Eicher Motors has launched the Royal Enfield Guerrilla 450. The brokerage has also given its opinion on this.
Apart from this, there are also reports on LTIMindtree and Bajaj Auto after the results.
Brokerage Firm’s View On Asian Paints
View: Underperform
Target: ₹2,100 per share
Weak start to FY25, earnings and margins weaker than estimates in Q1
Weak performance has nothing to do with competition: Management
Results were also impacted due to high raw material prices: Management
Stop/Opex to improve service levels impacted spending
Lowest EBITDA margin in several quarters, EBITDA fell by 20% year-on-year
A Top Brokerage View On Asian Paints
View: Neutral
Target: ₹2,800 per share
The first quarter was weaker than estimates due to weak margins and sluggish earnings growth
Earnings impacted by poor mix and sluggish demand
Growth is expected in Q2 on the back of rural areas even with the price hike
EPS for FY25-27 down by 3-5%, margin pressure possible
On Asian Paints A Renowned Brokerage View
View: Neutral
Target: ₹2,750 per share
EBITDA declined 20% year-on-year in Q1, challenge is increasing
Growth slowdown, management expects further recovery
EBITDA margins were impacted due to increased expenditure on staff and advertising
More pressure may be seen in the future due to increased competition
Brokerage View On LTIMindtree
View: Reduce
Target: ₹4,670 per share
Revenue slightly better than estimates in Q1FY25, margin weaker than estimates
Margin improvement unlikely during FY25
Short-cycle projects from clients likely to lead to growth in the short term
Margin recovery will be sluggish, major improvement is possible only based on faster growth
Brokerage View On Eicher Motors
View: Reduce
Target: ₹4,119 per share
Royal Enfield Guerrilla 450 launched at a starting price of ₹2.39 lakh
Despite interesting products, the share in the segment above 400cc has not increased much
Most users use the bike only for the commute
Apart from being expensive, these bikes are also difficult to drive in traffic
No major improvement expected in Royal Enfield’s growth even after the launch
Another Brokerage Opinion On Eicher Motors
Opinion: Underperform
Target: ₹4,157 per share
Guerrilla 450 launched in India at a starting price of ₹2.39 lakh
Bookings start in India, test rides and retail sales may start from August 1
Royal Enfield tops the market motorcycle segment with 29.5% market share
Royal Enfield dominates the segment above 250cc, 88.3% market share in FY24
Now due to an increase in competitors Market share is starting to decline
Underperform opinion due to expensive valuation
Brokerage Opinion On Bajaj Auto
Opinion: Neutral
Target: ₹9,655 per share
Gross margin better than expected in Q1 due to PLI accrual
Many growth drivers including CNG motorcycles
Growth possible due to expansion of E2W portfolio in models below ₹1 lakh
Growth is also possible based on the manufacturing footprint in LATAM
Growth will be supported by E3W volume and distribution for EVs and premium motorcycles
A Top Brokerage Opinion On Bajaj Auto
Opinion: Sell
Target: ₹6,250 per share
Margin at 20% in Q1 based on PLI incentives and spares
Margin may normalize going forward
The market is assuming a P/E of 25x for the e-wheeler business
Sluggish response to Triumph The market is ignoring this too
The market is ignoring the decline in market share in 2-wheelers even after several launches
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