Stock brokerages such as Motilal Oswal, Anand Rathi, HDFC Securities, and UBS have come out with research reports on select stocks namely Infosys, FDC, APL Apollo Tubes, ABB.
Here's what brokerages said about these counters:
Motilal Oswal has a ‘buy’ rating on Infosys shares with a target price of Rs 1,520. According to the brokerage, Infosys’ discretionary business has been adversely impacted by the macroeconomic slowdown over the last few months
Analysts at Motilal Oswal expect Infoss’ FY24 revenue growth to be around 5.2% YoY in CC terms, which falls under the lower end of the guidance range. Despite the near-term weakness, the brokerage expects Infosys to be a key beneficiary of acceleration in IT spends in the medium/long term
Anand Rathi has a ‘buy’ rating on APL Apollo Tubes stock with a target price of Rs 1,500 per share. According to the brokerage, Despite Covid-19 pandemic, company’s EBITDA margin remains intact at 7% which shows its resilience and competitive edge over its peers. “We believe that the company will continue its strong momentum,” it said
According to analysts at Anand Rathi, Apollo Tubes’ Revenue, EBITDA, and PAT is expected to grow at a CAGR of 33%, 32%, and 38% respectively over FY23 to FY25E. APL Apollo’s net debt has reduced, from Rs 788.1 crore in FY20 to Rs 243.4 crore at the end of FY23. Going ahead, the company aims to be debt free entity in FY24
Foreign brokerage UBS has upgraded ABB India shares to 'Buy' from 'Neutral' earlier, with a revised target of Rs 5,000 against Rs 3,770 earlier. UBS said it remains bullish on industrial automation and low voltage electrification demand and sees an improving case for further operating profit margin growth
With wide innovation-driven moats and high value-added products, ABB is extending its geographical reach in its leadership segments, such as motors, drives, low and medium voltage switches, and switchgears, which have a lot more room to grow profitably. Further momentum in service-layered long-term projects points to medium-to-long-term growth in revenue share from high-margin services, UBS said
HDFC Securities has a ‘Buy’ call on FDC stock with a target price of Rs 349 per share. “We feel investors can buy the stock in the band of Rs 297-301.5 and add more on dips to Rs 268 for base case target of Rs 326 and bull case target price of Rs 349 over the next 2-3 quarters,” it said
Analysts at HDFC Securities estimate an 11.8% CAGR in revenue, led by 16.5% growth in the exports business and 11% CAGR in India formulation business over FY23-25E. Strong revenue growth and improvement in gross margin could drive 18% CAGR in net profit over the same period, it said
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