Macquarie on QSR

Channel checks point to recovery in growth momentum across the restaurant industry with acceleration seen in December.

FC and McDonald’s top proprietary Restaurant Brand Index, supporting top pick Devyani (Yum India franchisee).

Proposed tax reductions in February budget could see industry SSSg accelerate vs estimates.

Order of preference: Devyani, Westlife, Sapphire, Jubilant Foodworks

Devyani International-Initiate Outperform. TP 230

Sapphire Foods-Initiate Outperform, TP 390

Ambit on BSE

Initiate Buy with TP of Rs Rs7,000

Premium growth has multiple drivers beyond penetration

On the road to a more fragmented market

Regulatory headwinds the villain in the penetration story

BSE’s turnaround opportunity could offset near-term headwinds

BSE has room to expand margins despite the tech spend

BSE StAR is a cash cow in the making

Nuvama On BSE

Initiate Buy Call, Target At Rs6,730/Sh

Derivatives To Scale Up Despite Regulatory Tightening

Forecast FY24–27 Revenue/APAT CAGR Of 39.9%/70.8%, Lifting RoE To 37.9%

Lower Clearing Charges To Send Margin Soaring

There is Robust Structure, Multiple Streams To Propel Revenue Growth

At CMP Stock Is Trading At FY26/27 P/E Of 43.9x/37.6x

Emkay initiates on Dixon

Initiate coverage with BUY and TP of Rs20,000

Build in 36%/54% revenue/adjusted EPS CAGR over FY25E-27E (and 20%/40% over FY25E-35E)

Backward integration foray to reinforce Dixon’s competitive advantages

Laptops/IT hardware, the next large growth lever, forming ~23% of revenue by FY35E

JM Financial on Cement

India’s cement sector is experiencing accelerated consolidation,

Resulted in significant pressure on pricing/ profitability.

With major acquisitions largely completed, we expect the focus to shift towards profitability/ returns.

Key demand drivers looking positive and the sector poised for 7-8% CAGR over FY25E-27E.

Industry is increasingly focused on cost optimisation and de-risking, which should help reduce cyclicality over time.

Expect coverage companies to report >25% EBITDA CAGR over FY25E-27E (post declining by 7% in FY25E)

With EBITDA/tn rising from INR 889/tn in FY25E to INR 1,123/tn in FY27E.

Top picks are UltraTech, Ambuja and JK Cement.

Ultratech Cement-Initiate-Buy, TP 13000

Ambuja Cement-Initiate-Buy, TP 685

JK Cement-Initiate-Buy, TP 5300

CLSA on Material (Currency concerns)

Mild negative impact for cement / durables; metals balance sheet better

This sensitivity is lower than a decade ago given better profitability and lower leverage

Negative impact on cement and consumer durables given their dependence on imports.

Metal stocks is positive as realisations are largely all linked to USD (less so for steel) and costs are partly denominated in local currency.

Metals: Prefer JSPL, Vedanta and Hindalco

Given lower leverage, the balance sheet impact is much lower than in the past (FY14 / FY19).

HSBC On OMCs

Volatility In Oil Price Will Reduce Risk Of Auto Fuel Pump Price Reductions, Biggest Risk To Profitability

Return Of Auto Fuels Demand In Non-Controlled Products Help Offset Weakness In Marketing Margin

Maintain Buy Call On OMCs (BPCL, HPCL, IOC); Stock Correction Makes Them Even More Attractive

Axis Cap on Bharat Forge

Earnings downgrade cycle not yet behind

Cut FY25-27E consolidate d EBITDA by 3-5% and revise TP to Rs 1,180 (from Rs 1,190)

U/G a notch to REDUCE vs Sell on price correction