LIC Housing, GSK Pharma, Utkarsh SFB, Britannia, Devyani, Motherson Sumi Wiring: Share price targets

A handful of large and midcap companies recently came out with their quarterly earnings including LIC Housing Finance, Motherson Sumi Wiring, GlaxoSmithKline Pharmaceuticals (Glaxo Pharma), Amara Raja Energy & Mobility Ltd, Utkarsh Small Finance Bank (Utkarsh SFB), Britannia Industries Ltd and Devyani International Ltd, among others. Here's what analysts said on the company prospects and stock price targets:

LIC Housing Finance
Prabhudas Lilladher (PL) said LIC Housing saw a mixed quarter as net interest income (NII) missed its estimates by 12 per cent, which was offset by lower provisions at 20 basis points. The net interest margin (NIM) fell 37 bps QoQ due to lower interest on recoveries on account of softer collection efficiency led by seasonality, and repricing pressure, especially on higher priced loans, due to competitive intensity. 

LIC Housing expects NIM to have bottomed out as share of higher yielding non-housing loans is targeted to improve in FY25 to 20 per cent from 13 percent in FY24 and funding cost may ease. 

"Double-digit loan growth guidance has been maintained for FY25E. However, we are factoring 7 per cent loan CAGR over FY24-26E due to competition from banks and large HFCs. Given RoA of 1.4-1.5 per cent, re-rating would hinge on better loan growth and stable earnings quality in terms of NII and provisions. We maintain multiple at 1 times on Mar’26 ABV and target price at Rs 660," it said.

GlaxoSmithKline Pharmaceuticals 
MOFSL said GlaxoSmithKline Pharmaceuticals (Glaxo Pharma) delivered better-than-expected 1QFY25 performance, as the robust growth in key brands, young potential brands and vaccines were aided by lower raw material costs, which led to higher-than-expected margins.

The domestic brokerage has upped its estimates by 2-3 per cent for FY25 and FY26 to factor in: the sustained benefits of lower RM costs, improved scale-up in brands like Nucala, and Treligy, and strong volume off-take of Ceftum. It values Glaxo Pharma at 47 times 12-month forward earnings to arrive at a target price of Rs 2,620.

"Despite an increase in the share of portfolio under NLEM, Glaxo has shown healthy growth in respiratory brands, legacy brands (Augmentin, T-Bact, Calpol), as well as the vaccines segment. Accordingly, we model a 9 per cent earnings CAGR over FY24-26. However, we believe that the current valuation adequately factors in the upside in the earnings," it said.

Utkarsh Small Finance Bank
Utkarsh SFB's Q1FY25 core operating performance continued to be robust as reflected in 10 per cent sequential pre-provision operating profit (PPoP) growth and over 18 per cent return on equity, despite challenges due to heatwaves and elections, ICICI Securities said. 

The management sounded confident of achieving FY25 credit cost guidance of 2 per cent against 2.7 per cent in Q1FY25. It has implemented new guardrails announced by MFIN and does not foresee any material impact on its FY25 credit growth guidance of 30 per cent.

"We continue to prefer Utkarsh within SFB space considering its balanced growth approach and sharp focus on asset quality, even while growing balance sheet and profitability. Maintain BUY with an unchanged target price of Rs 70, valuing the stock at 2 times Sep’25E BVPS," ICICI Securities said.

Britannia Industries
InCred Equities said Britannia's aggression on driving volume growth, even if it comes at the cost of margins, boosted by a revamped route-to-market initiatives, are in the right direction, and should fuel better growth in 2HFY25F. It has upgraded the stock to an 'Add' rating from 'Hold' earlier, with a target price of Rs 6,300 against Rs 5,400 earlier, based on 55times September 2026 EPS. 

"Britannia has engaged Bain & Co to revamp its route-to-market strategy across both rural and urban markets, where rural markets will remain a focus area, as Britannia's revenue contribution has headroom to improve from 15 per cent currently against the industry average of 33-35 per cent. In terms of market share, rival Parle has over a 50 per cent share in these markets against 18 per cent for Britannia, which targets an improvement led by distribution gains and an enhanced route to market," InCred Equities said.

Tata Chemicals
Nirmal Bang said the June quarter revenue missed its estimates by 2.8 per cent and was a tad beat on consensus estimate. The consolidated adjusted profit after tax was a beat of 17.5 per cent against its estimate while there was a miss of 1.8 per cent in PBT due to higher depreciation/interest expense. Tata Chemicals' other income also missed its estimates. The brokerage has suggested a 'Sell' on the stock with a target of Rs 845, as Soda Ash still faces some headwinds.
"The stock is expected to see 19.7 per cent downside after 7.4 per cent decrease in our SOTP-based target price (TP) to Rs845. This is on unchanged EV/Ebitda multiple of 7 times on June’26E for Chemistry segment Ebitda- implies 13.5 times PE on June’26E vs median PE of 16.0x.

Motherson Sumi Wiring 

Motherson Sumi Wiring India continued to outperform the industry with healthy revenue growth of 18 per cent YoY, driven by strong content and volume growth, JM Financial said.  The Q1 Ebitda margin, however, missed JM's estimate largely owing to start-up costs related to two new plants. The rising feature-led premiumisation and gradual shift towards EVs continue to be the key lever for higher content per vehicle over medium-to-longer term, the brokerage said.

"Going ahead, favourable mix and higher operating leverage is expected to drive margin performance. New capacity addition, in-line with customer order wins, is expected to support medium-term growth and we expect Mother Sumi Wiring to continue its growth outperformance led by new business wins (incl. EVs) across segments," JM Financial said. 

It reduced its EPS estimates by 4 per cent for FY25 and FY26 to factor-in impact of gradual ramp-up of new plants and suggested a target price of Rs 77.

Devyani International

Nuvama said Devyani International reported negative same store sale (SSS) growth for both KFC (down 7 per cent) and Pizza Hut (down 8.6 per cent) in the June quarter. A shift of Navratra from March to April versus last year led to majority of KFC’s negative SSSG, it said. 

"However, ADS levels and brand contribution have picked up QoQ. Thailand business posted a decent quarter and contributed majority of growth at the consolidated level. We are consolidating Thailand business numbers and factoring in a gradual recovery in India with softness to continue given near-term headwinds, and geopolitical issues," it said.

The brokerage cut its target valuation for the stock to 26 times from 28 times Q1FY27 Ebitda due to near-term headwinds and suggested a revised target price of Rs 208 against Rs 212 earlier.