Stock brokerages including Nuvama Institutional Equities, Motilal Oswal, JP Morgan, and Axis Securities have come out with research reports on select stocks namely Cipla, Bharat Forge, ITC, and Aurobindo Pharma. Here's what brokerages said about these counters.
Brokerage firm Axis Securities has a ‘Buy’ rating on Cipla stock with a target price of Rs 1,380. The brokerage said that gAdvair and gAbraxane could lead to additional revenue in FY25E, despite current regulatory challenges. gSynbicort is expected to launch in Q4FY24, and the company plans to launch three more peptides next year ($30-50 Mn).
According to analysts at Axis Securities, Cipla has already successfully launched peptides last year. It has also increased its headcount by 1,000 MR to a total strength of 7,000, which will bring additional revenue to the India business in the future.
JP Morgan has upgraded Bharat Forge stock to an ‘Overweight’ rating with a target price of Rs 1,115 per share. The foreign brokerage believes that Bharat Forge could trade at a premium vs. history due to reduced cyclicality of revenues. “Indian industrial stocks normally trade at a premium to auto components,” it said.
"Our positive view is predicated on Better-than-expected traction in defence and industrial revenues which is reducing the dependence on the cyclical truck business, Faster-than-expected turnaround in subsidiary profitability which is also geared towards new structural growth areas such as aluminium forging, renewables and defence, and within the truck business we expect a decline in the US to be offset by India in FY25 and the reverse should happen in FY26," said JP Morgan in its report on Bharat Forge.
Brokerage firm Motilal Oswal has a ‘buy’ rating on ITC stock with a target price of Rs 535 per share. According to the brokerage, ITC’s earnings outlook is better than other large-cap staples players in FY25 and in terms of a two-year CAGR ending FY24.
“At a time when uncertainty looms over the industry, led by high inflation, unpredictable monsoons and continued weak rural sales, ITC’s recovery in Cigarette volumes offer decent earnings visibility at reasonable valuations and attractive dividend yield,” said Motilal Oswal in its report.
Nuvama Institutional Equities has a ‘Buy’ rating on Aurobindo Pharma stock with a target price of Rs 872 per share. According to the brokerage, the company has followed a strategy of acquiring portfolios & technologies and bolstering offerings. It is on the cusp of filing transdermals, biosimilars, nasals, inhalers and depot injections.
“In the medium term, pipeline of 170 pending ANDAs, its 50 annual launches and injectable capacity expansion should translate to mid-to-high single-digit growth. API expansion, the PLI scheme and contract manufacturing opportunity in vaccines promise long-term growth,” analysts at Nuvama said about Aurobindo Pharma.
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