Stock Market Live Updates 12 April 2024: Sensex sheds over 500 pts, Nifty slips below 22,600

Goldman Sachs on Custom Research & Manufacturing Services (CRO/CDMO)

Initiate Buy on Syngene, TP ₹875

Initiate Buy on Neuland , TP ₹9100

Initiate Sell on Laurus Labs , TP ₹350

GS on Syngene

Initiate Buy , TP ₹875

Barring short-term macro challenges in CY24, see multiple catalysts 

(i) improving biotech funding environment,

(2) ramp-up of Mangalore API/ Stelis biologics plant in H2FY25/FY26

(3) new contract wins esp. in current anti-China environment.

While pharma R&D outsourcing TAM of $200bn is seeing healthy double-digit growth p.a, forecast India’s global market share to increase 30bps (in small molecule CDMO) & 70 bps (CRO) by FY28E in base case

GS on Neuland

Initiate Buy, TP ₹9100

Barring challenges to FY25 growth on a/c of a high base, see multiple catalysts

i)improving biotech funding environment,

2)new capacity at unit-3 coming online from FY25-end

3)commercialisation of large molecule in FY26/27

GS on Laurus Labs

Initiate Sell, TP ₹350

Risk-reward unfavourable

i)lack of catalysts for CDMO biz in CY24

2)mismatch in timelines for new capacity monetisation vs expectations

3)slower FY25 growth with risk on margin guidance vs expensive valuations

Trades @34x FY26E EPS

Nomura on Lupin

Buy Call, Target ₹1,949

Mgmt’s Comments Suggest Co Would Consolidating Its Presence Across Markets

Co To Consolidate Its Presence Through Improved Execution And Cost Control

As Per Management, Co Has Learned From Past Mistakes

Co Is Conservative On Inorganic Expansion & Would Not Pursue A Large Acquisition

Expansion In EBITDA Margin & Low Capex To Improve Free Cash Generation Over Next 2 Yrs

An Improved Balance Sheet, Earnings Could Surprise On Upside

GS on CreditAccess Grameen

Initiate Buy, Target ₹1,788

Co Has Demonstrated A Good Track Record Through The Cycles

Forecast A Healthy 21% Profit CAGR, Coverage At 15% Over FY24-FY26

Forecast A Healthy Profit CAGR On Strong Lending CAGR Of 24%

Forecast A Healthy Profit CAGR On Continued Superior Profitability With Avg RoAs Of 5.6%

Continued Superior Profitability On, Diversified Loan Book, Mkt Sh Gains From Geographies

Maintaining Competitive Edge On Ind-Leading Credit Costs & Operating Efficiency

Stock Currently Trades At 2.7x P/B & 12x P/E FY25

Jefferies on Entero Healthcare

Initiate Buy, Target ₹1,510

Co Is A Fast-Growing Healthcare Products Distributor In A Large & Fragmented Mkt

Co’s Wide Reach & Product Offering Should Lead To 20% Organic Rev CAGR For FY24-26

Co’s Strong Tech Platform, Should Lead To 20% Organic Revenue CAGR For FY24-26E

Co Should Gain From Industry Consolidation

Over FY24-26E, Est 44% Rev CAGR & 8x Rise In Adj Profit As Economies Of Scale Kick In

MS on Phoenix Mills

Overweight Call, Target ₹3,000

Co Reported 9% YoY Growth In Same Store Consumption In Q4, Up From 5% In Q3

Same Store Consumption Data Higher Than Consensus

Consensus Expressed Concerns About Decelerating Consumption Growth For Mature Malls

For Example, Palladium Mumbai Consumption Only Rose 1% YoY

Palladium Mumbai Consumption Only Rose 1% YoY Partly Due To Closure Of Lifestyle Section

Same Store Consumption, Ex-Indore Decelerated From Q3 FY24

InCred on Navin Fluorine

Upgrade To ADD, Target Cut To ₹4,080

Co’s FY24 EPS May Decline By 31% YoY, Driven Mainly By Agrochem Slowdown

Future Growth for EPS To Be Driven By Less Cyclical Pharma Products

Co Is Making Multiple Potential Intermediates For Cystic Fibrosis, Cancer & Pain Treatments

Correction In Its Stock Price Based On Cyclical Factors Is A Buying Opportunity

Macquarie on Industrials

BEL And Cummins India Are Our Preferred Picks

Target ₹280 For BEL

Target ₹3,600 For Cummins India

Outperform Call On L&T, Target ₹4,400

Outperform Call On Carborundum, Target ₹1,500

Neutral Call On ABB, Target ₹6,550

Target At ₹5,575 For Siemens

Underperform Call On BHEL, Target ₹200

Target At ₹3,550 For Thermax

India Looks Set For A Multi-Year Capex Upcycle With Multiple Themes At Play

Several Themes Are Still At Early/Mid-Cycle And Often Feed Into Each Other

Tailwinds Have Started To Bolster Order Backlogs