Axis Bank, Sona BLW, TechM, Chalet Hotels, Jubilant Food share price targets, analyst views

A host of stocks including Axis Bank Ltd, Tech Mahindra Ltd, Jubilant FoodWorks Ltd and Chalet Hotels Ltd, among others, have received updates on price targets by brokerages following either Q2 results or corporate developments. Sona BLW Precision beat analyst estimates with its Q2 but, for Axis Bank, September quarter was a mixed bag. Tech Mahindra saw minor cuts in earnings per share (EPS) estimates post its Q2 results. Chalet Hotels is a Buy, said a couple of brokerages.

Axis Bank share price target

Motilal Oswal said Axis Bank delivered a mixed bag of performance in the September quarter, with healthy earnings driven by steady margins and sharper liquidity deployment during the quarter. Credit growth picked up pace, it said but noted that deposit growth was muted for the second quarter in a row, resulting in a higher C/D ratio of 94 per cent.

"We remain watchful of deposit accretion for the bank as it will be critical to sustain healthy loan growth. Asset quality remains robust, with slippages declining further and recoveries remaining strong," the brokerage said while retaining its 'Buy' rating with a target of Rs 1,150. Jefferies has upped its target on the stock to Rs 1,250 from Rs 1,200. Macquarie retained its target of Rs 980 while Kotak Institutional Equities has a fair value of Rs 1,100 on the stock.

Tech Mahindra share price target

Kotak Institutional Equities has cut its FY2025-26 revenue estimates for TechM by 5-6 per cent and EBIT margin by up to 60 basis points, leading to earning per share (EPS) cuts of 5-11 per cent. The brokerage said TechM is rationalising its business and internal operations, which it said are visible through recent measures.

"These are necessary and beneficial in the long term but extract a toll on near-term financials due to the upfront costs involved. Sharp revenue and margin misses are driven by one-offs from termination of non-core business, made worse due to client-specific issues in the telecom vertical and weak discretionary spending. The pain will continue in the December quarter as well," it said while suggesting a target of Rs 1,150 on the stock.

Antique Stock Broking has cut its target on the stock to Rs 1,225 from Rs 1,300, in line with 5-6 per cent EPS estimates for for FY25-26. Motilal Oswal Securities finds the stock worth Rs 1,040 and Nirmal Bang at Rs 1,229.

Sona BLW Precision share price target

Motilal Oswal Securities said Sona BLW Precision's 2QFY24 results beat its estimates, led by better mix that contributed to an EBitda margin of 28.2 per cent against an estimate of 27.4 per cent. The company’s focus on expanding in EVs remains steadfast, with BEV accounting for 27 per cent of the revenue, it said. "Additionally, the company now aims for a long-term growth in the broader non-auto mobility sector, which currently

represents 10 per cent of the revenue. We believe the current valuation of 57.6x/44.4x FY24/25E EPS reflects the company’s robust EV order book as well as its impressive earnings and return profile," it said while suggesting a target of Rs 565 on the stock.

Kotak has a fair value of Rs 520 on the stock. LKP Securities has a target of Rs 624 based on 45 times FY25E EPS. Blackstone’s recent exit eliminates the overhang of a large supply of shares, it said. Nuvama Institutional Equities has a target of Rs 500 on the stock, as it upgraded its recommendation to ‘HOLD’. Jefferies finds the stock worth Rs 700.

Jubilant FoodWorks share price target

Nuvama Institutional Equities said it has downgraded Jubilant FoodWorks (JFL) to ‘HOLD’ as the recent run-up does not dovetail with its performance. It adjusted down FY24E/25 estimated Ebitda by 5 per cent each, factoring in the performance despite building in a robust LFL showing in Q3FY24.

"Longer term, Jubilant FoodWorks is targeting LFL of 5–6 per cent. We ascribe the stock a PE of 50 times, similar to its five-year pre-covid average (FY15–19 average SSSG/revenue CAGR of 6 per cent/15 per cent versus FY24–26E’s 4 per cent/11 per cent), and value Popeyes’ separately. This yields a target of Rs 541 against Rs 549 earlier," it said.

Motilal Oswal Securities finds the stock worth Rs 610, Kotak finds the stock worth Rs 500. Goldman Sachs has a target of Rs 515 on the stock.

Chalet Hotels share price target

Emkay Global said Chalet’s September quarter revenue growth of 27 per cent, Ebitda growth of 48 per cent and PAT growth of 131 per cent YoY was above its estimates. The beat, the brokerage said, was led by RevPAR increasing by 24.5 per cent YoY.

Emkay Global noted that Chalet is aiming an Ebitda CAGR of 30 per cent over FY23-26E and net debt reduction from FY25, as it initiates a slew of expansion projects, which would engender 10 per cent room-count CAGR over FY23-26E.

"The company’s strategically located hotels in key cities ensure high occupancy. Leasing of commercial assets provides partial hedge against cyclicality of the hospitality industry, though asset ownership with high debt level could be a key risk during an industry downtrend. We have cut our FY27E Ebitda by 1.8 per cent due to the shift in Airoli, Mumbai, Hotel from FY26 to FY27," the brokerage said while reducing its target on the stock to Rs 620 from Rs 625 earlier.

Prabhudas Lilladher said it has a 'BUY' rating on the stock with a target price of Rs 656.

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