Stock recommendations by analysts: LIC Housing, Tata Chemicals, Godrej Agrovet and more

Produced by: BT Desk

LIC Housing

Philip Capital remains wary of slippages from restructured loans, which can keep credit costs elevated and also result in interest income reversals in FY24. The brokerage maintains Neutral rating on the stock with a target price of Rs 600 (earlier Rs 400, 1.0x FY25E BVPS).

Tata Chemicals

Nirmal Bang has cut estimates for FY24E/FY25E/FY26E by 0.5%/26.6%/30%, based on reduced EBITDA across the US and Europe markets. The brokerage maintains sell 21.0% cut in SOTP-based target price to Rs665.

Embassy REIT

Embassy REIT reported its best-ever quarter in terms of leasing with 3.5 msf of leases signed in 4QFY24, largely driven by pre-commitments and new leases. CLSA maintains its buy rating at Rs 410 target price.

Alembic Pharma

Compared to two years of earnings decline over FY21-23, Motilal sees co to end FY24 on a strong note with 12%/33% EBITDA/earnings growth YoY. It maintains Neutral rating as this earnings upside is adequately captured in the current valuation.

KIMS

Despite a slightly slower 4QFY24 as well, Kotak sees KIMS' outlook starting 1QFY25 across various clusters as healthy. It expects KIMS to deliver a robust 18% EBITDA CAGR over FY2023-26E led by improved utilization as well as an enhanced case mix. Brokerage retains ADD with fair value of Rs 2,275.

Godrej Agrovet

Kotak says the turnaround initiatives taken by the company seem to be moving broadly in the right direction. Brokerage retains reduce, with a fair value of Rs 1,500

Varun Beverages (VBL)

VBL reported 18%/21% volume/value growth in 4Q, aided by broad-based growth across India/overseas. Kotak estimates a 27% EPS CAGR. It says ADD with a revised fair value of Rs 1,400 (Rs 1,250 earlier).

METROHL

Co reported a muted 3QFY24, impacted by sluggish volume growth and certain provisions. Kotak says while the worst of the pricing-led competition in diagnostics is behind, newer players continue to dent the volume growth of incumbents. At CMP, valuations limit a further upside. Kotak retains REDUCE, with an fair value of Rs 1,500.

Disclaimer

Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position