Upgrades

We recommend a BUY on the stock with a target price of Rs 4,300/share, implying an upside of 10% from the CMP

Driven by tariff repair in the India wireless segment, Bharti’s FCF generation improved significantly over the past few years (9MFY25: INR292b). Bharti’s main priority for cash deployment so far has been prepaying high-cost debt.

We see CIL’s FY25 performance to be impacted by possibly stagnant volumes, though e-auction price remains relatively stable. Production and offtake volumes until Feb’25–YTD was impacted by rake unavailability, inclement monsoons and ongoing production issues at SECL.

We upgrade City Union Bank (CUBK) to BUY with an unchanged target price of INR 200, valuing the stock at ~1.45x FY26E ABV, broadly in-line with forward RoAs. Post ~17% stock price correction in the last month, CUBK’s valuation at ~1.1x forward book is near its lowest in the last three years – juxtaposed with an improved growth outlook and NIM resilience.

We maintain our BUY rating on the stock

Elgi plans to expand its Electric Motors capacity while investing ~Rs2.5bn for phase 1 of MK2 plan to build new facilities of Portable business and GSC. We recently attended Elgi Equipments' plant visit & analyst meet, where the management highlighted the company's robust business performance driven by market share gains in the ISAAME (India, South Asia & Middle East) region amid strong demand and new product launches. However, North American...

Mgmt. expects ~20-25% ROCE, 5-7x asset turnover, and EBITDA margins akin to industry on full ramp up. Wires to contribute ~60% of W&C revenue. UTCEM has announced its foray into the wires and cables (W&C) segment to strengthen its construction value chain through UltraTech Building Solutions (UBS) stores. Mgmt. has evaluated almost all building material categories and clarified W&C is the only category UTCEM will be entering for targeting growth over cement; being only strategic extension to cement having strong...