Stock brokerages have recently come out with research reports on select stocks namely Eicher Motors, Escorts Kubota, Bharti Airtel and Ahluwalia Contracts India. While Bharti Airtel, Ahluwalia Contracts and Escorts Kubota have ‘Buy’ ratings from brokerages, Eicher Motors has a 'Sell' tag from Kotak Institutional Equities. Here's what brokerages said about these stocks:
With expected launches from Bajaj-Triumph and Hero-Harley in the less than 250 cc motorcycle segment over the coming years, Kotak Institutional Equities has maintained its 'Sell' rating on Eicher Motors at a fair value of Rs 2,800.
Despite the launch of Hunter 350, demand recovery in Royal Enfield’s domestic portfolio remained lacklustre, as sales during September-March 2023 failed to surpass FY2018 levels. Higher upfront cost and weak demand trends in some key states weighed on demand recovery. Competitive intensity is set to increase, weighing on growth prospects.
In view of the sizable presence in a relatively better-placed tractor segment, strong positive cash flow, healthy return ratios and a likely synergy from Kubota tie-up ahead, Reliance Securities has a 'Buy' rating on the stock, with a target price of Rs 2,210.
"Healthy tractor volumes and better traction in the railway segment would benefit the company on the revenue front. We expect operating margins to recover partially in FY24 and FY25. Recent normal monsoon prediction improves farmers sentiment, which is a key trigger for the tractor industry," Reliance Securities said.
Axis Securities expects Ahluwalia Contracts to deliver Revenue, Ebitda, and adjusted PAT growth of 15-23% CAGR over FY22-FY25E, The brokerage values the stock at Rs 610 apiece and has a ‘Buy’ rating.
Axis Securities remain positive about the company’s growth prospects. which it said is supported by its robust order book, strong liquidity position, and experienced management bandwidth. The government’s focus on infra development is another tailwind.
ICICI Securities has maintained its ‘Buy’ rating on Bharti Airtel with a target price of Rs 960, even as it sees the lack of free cash flow (FCF) generation as the biggest disappointment, which has capped shareholder value creation.
"We have come a long way, and are close to crossing the line from where Bharti can possibly generate cashflow equivalent to 10% of its current market capitalisation, and this, we believe, is just two years away. We maintain our ‘Buy’ rating with an unchanged target price of Rs 960," ICICI Securities said.
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