Antique Stock Broking on Monday came out with reports on a dozen companies including Mazagon Dock Shipbuilders Ltd, Honeywell Automation India Ltd, Bharat Heavy Electricals Ltd (BHEL), NHPC Ltd, Sobha Ltd, Oil India and Firstsource Solutions Ltd. Most of these stocks were trading lower in Monday's trade, tracking December quarter results. BHEL gained on big order win. Antique retained its 'Buy' on a majority stocks.
On Mazagon Dock, Antique said Q3 saw a margin-led beat on the operation front. The brokerage said Mazagon has a strong order book position and that the execution could lead to steady topline growth. It maintained a 'Buy' rating with a target price of Rs 2,757.
Honeywell Automation India's Q3 results were below Antique's estimates on the operational front impacted by weaker than estimated revenue booking and disappointment on profitability. To factor in the near-term macro challenges and the global growth risk arising on account of decelerating growth, it trimmed its FY25-27 estimates by 3-19 per cent. It still maintained its 'Buy' rating on the stock with a revised target of Rs 44,062.
In the case of Firstsource Solutions Ltd, the IT firm raised its FY25 revenue growth guidance to 21.8–22.4 per cent in CC terms from 19.5–20.5 per cent. The guidance implies 0–1.5 per cent growth in Q4, which is below Antique's expectations. The company though has historically provided conservative guidance and continued to upgrade it, Antique said.
"Following the results, we keep our earnings estimates largely unchanged and maintain our BUY rating on the stock with a target price of Rs 410 (unchanged)," it said.
For BHEL, Antique said business outlook looks promising as 11-plus GW of ordering is expected to materialise in FY26 as the recently bagged better-margin orders enter execution. It said the BHEL stock has meaningfully re-rated over the last one year, yet it is inexpensive and has the potential to re-rate further. The brokerage suggested a target of Rs 300 on the stock.
On NHPC, Antique said the company is planning to add capacity at Parbatti-2 in FY25E but earnings are expected to be realised only in FY26E as commissioning is likely to happen in 4QFY25. It said historically there has been a delay in asset commissioning and, thus, the timeline needs to be watched.
"Post the result, we have marginally tweaked our EPS estimate on account of a quarter delay in addition and thus EPS is revised lower by 2-7 per cent for FY25-27. The stock trades at 2 times FY27E BV and we retain HOLD rating on the stock with a revised SoTP-based target of Rs 85 (earlier Rs 92)," it said.
Sobha's results were a miss on guidance. In 9MFY25, it achieved sales bookings of Rs 4,440 crore against a guidance of Rs 8,500 crore for FY25. Approval challenges persist, which will be a key monitorable, it said.
"We maintain BUY with a revised target of Rs 2,012 (previously Rs 2,904), valuing the residential segment on a multiple of 9 times (previously 11 times) FY27E embedded EV/Ebitda," it said.
Oil India missed Q3 estimates on lower crude sales and realisation. But Antique believes the company's upstream business is trading at an undemanding valuation of 2 times FY27 EV/Ebitda, net of investments. It maintained 'Buy' with a revised target of Rs 635/share (previously Rs 668/share), implying a 46 per cent upside to the CMP," Antique said.