Stock brokerages including Nuvama Institutional Equities, ICICI Securities, Motilal Oswal, and Axis Securities have come out with research reports on select stocks namely JK Cement, PVR INOX, Indian Hotels Company, and Coforge. Here's what brokerages said about these counters.
Brokerage firm Nuvama Institutional Equities has a ‘Buy’ rating on JK Cement stock with a target price of Rs 3,667 per share. While the brokerage is positive on the cement stock, it believes that a sharp decline in cement prices, demand or a sharp increase in input cost may be the risks going forward.
According to analysts at Nuvama Institutional Equities, “We like JK Cement for its consistent volume growth visibility complemented by structural positives of improving regional mix (rising exposure in North + Central India) and improving efficiency mix (rising share of modern plants and higher blending).”
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ICICI Securities has a ‘buy’ rating on PVR INOX stock with a target price of Rs 2,240 per share. The brokerage has been bullish on the recovery of the movie exhibition business given the strong pipeline since Q2FY24. However, the current performance is a positive surprise, it said.
"Given the high operating leverage that plays out in this business, we believe earnings upgrades are necessary. We, therefore, upgrade adjusted EBITDA estimates for FY24E/25E by 48%/12%. We are now 52%/8% above consensus. Given our bull case is playing out, it remains a top pick," said ICICI Securities in its report on PVR INOX.
Brokerage firm JM Financial Services has a ‘buy’ rating on Indian Hotels Company (IHCL) stock with a target price of Rs 450 per share. The brokerage estimates a revenue, EBITDA CAGR of 12.5% and 15.9% respectively over FY23-26E for IHCL. It expects RoE to improve further from 13.3% in FY23 to 14.9% in FY26E.
“IHCL’s unmatched pan-India coverage, comprehensive presence across all customer segments, vastly improved brand architecture, and a sharper focus on capital allocation coupled with the favourable demand situation is yielding results with a positive flow-through into earnings. We are factoring in an ARR growth of 8-10%, occupancy improvement linked to the industry up-cycle and in-exit ARR growth of 5% for the hospitality business,” said JM Financial in its report.
Axis Securities has Coforge as one of its top IT picks with a target price of Rs 5,900 per share. The brokerage is encouraged by the improved outlook in the vertical, and engagement with clients give it confidence in the company’s future prospects.
“We are encouraged by the improved outlook in the vertical and engagement with clients give us confidence in the company’s future prospects. Given the company’s strong growth potential, supported by solid deal-making and excellent execution capabilities, we recommend BUY on the stock," said analysts at Axis Securities about Coforge.
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.