Stock brokerages namely Phillip Capital, B&K Securities, Motilal Oswal and Nuvama Institutional Equities have come out with research reports on select stocks namely Zomato, IOC, Kajaria Ceramics and Bharti Airtel. Here's what brokerages said about these counters
Phillip Capital has a ‘Neutral’ rating on Kajaria Ceramics stocks with a target price of Rs 1,103. According to PC, for the tiles industry, improving exports demand, recovery in tier 3 & 4 cities, and improvement in domestic construction activity, will result in a pick-up in volumes and leading domestic brands seeing an increase in market share
According to Phillip Capital, Kajaria Ceramics will benefit from a pickup in domestic construction activities, increasing touch points, and improving product offerings. “At this multiple, KJE has limited room to negotiate any disruption in volume growth and margin,” it said
B&K Securities has a ‘buy’ call on IOC stock with a target price of Rs 109. “IOCL remains our top pick among the oil marketing company space,” it said
According to the brokerage, India Oil Corporation’s refining capacity will rise by around 19% in the next two years, while petrochemical projects worth Rs 396 billion are set to begin operations by end FY25F
Nuvama Institutional Equities has a ‘Buy’ call on Zomato stock with a revised target price of Rs 85. Zomato is nearly at the doorstep of turning adj. EBITDA positive for its core business ex-quick commerce. It will likely deliver adj. EBITDA profitability for the consolidated business in Q4FY24 and net profitability in Q2FY25, it said
According to Nuvama, food delivery is likely to remain a duopoly and see no threat from ONDC for now. The brokerage revised its FY23-25E revenue growth projection from 44% to 43% CAGR. However, recent cost-cutting measures have improved the profitability outlook, it said
Motilal Oswal Financial Services has a ‘Buy’ rating on the stock with a target price of Rs 950. In the near term, Bharti Airtel’s earnings growth is expected to remain soft due to slow market share gain, limited tariff hikes and moderating 4G mix benefits, the brokerage said
Motilal Oswal that higher capex for the 5G rollout and rural coverage could lead to moderate FCF generation. As a result, the Bharti Airtel stock could remain range-bound in the near term. However, the company is well poised to benefit from sectoral tailwinds for the next two years, the brokerage said
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