Hot Stocks: Brokerage view on RIL, IIFL Finance, MGL and UltraTech Cement

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Citigroup on UltraTech Cement: Buy| Target Rs 11700

Citigroup maintained a buy rating on UltraTech Cement with a target price of Rs 11700. The pace of demand growth has slowed down.

FY25 growth is seen at 8-9% despite a muted first half owing to elections. The management indicated prices are likely to be soft as producers focus on market share.

Historically, when India’s capacity utilisation goes beyond 85%, then there is natural pricing power.

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Citigroup on MGL: Sell| Target Rs 1405

Citigroup downgraded MGL to sell from a buy earlier and has also reduced the target price to Rs 1405 from Rs 1480 earlier.

The global brokerage firm is concerned by recent statements by the oil minister. The minister said that end-consumers have failed to fully benefit from the govt’s gas reforms.

The minister said that city gas distribution companies (CGDs) are continuing to enjoy high profits. The minister said that the gov’t would be willing to consider drastic steps to ensure consumers benefit.

“We fear this could translate into renewed concerns on exclusivity & margins,” said the note.

Jefferies on IIFL Finance: Hold| Target Rs 435

Jefferies downgraded IIFL Finance to hold from buy earlier and has also slashed the target price to Rs 435 from Rs 765 earlier.

RBI’s restriction should dent earnings due to the rapid unwinding of the profitable gold loan book. The timing of the lifting of the ban is uncertain.

Assuming the ban stays for 9 months, we cut FY25-26 EPS by 26-27% and ROE by 460- 480bps. The global investment bank expects profit to fall 6% in FY26E.

JPMorgan on RIL: Overweight| Target Rs 3100

JPMorgan maintained an overweight rating on RIL with a target price of Rs 3100. Only 3 variables are large enough to drive EPS beats – refining margins, petrochemical margins, and telecom tariffs.

Reliance cannot influence the first two but can control telecom pricing. Tariff hikes can then be a significant earnings and stock catalyst in the coming quarters.

While retail earnings are relatively modest, it can drive a valuation catch-up on the eventual listing.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)