Stock brokerages including Axis Securities, JM Financial, Prabhudas Lilladher, and Motilal Oswal have come out with research reports on select stocks namely Varun Beverages, Reliance Industries (RIL), Titan Company, and Motherson Sumi Wiring. Here's what brokerages said about these counters.
Brokerage firm Axis Securities has a ‘Buy’ rating on Varun Beverages stock with a target price of Rs 920 per share. According to the brokerage, VBL has consistently outperformed its peers in recent quarters despite the volatile environment.
"Going forward, VBL is expected to perform well due to normalisation of operations and gaining market share in the newly acquired territories, Continued management focus on efficient go-to-market execution in the acquired and underpenetrated territories; expansion of distribution reach to 3.5 million outlets in CY23, coupled with an increased focus on expanding the value-added dairy, sports drink (Gatorade) and juice segments; and robust growth in international regions,” said Axis Securities in its report.
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JM Financial Services has a ‘Buy’ rating on Reliance Industries (RIL) stock with a target price of Rs 2,900 per share. The brokerage is positive on the stock as it believes that the conglomerate’s net debt concerns are overdone, and also because RIL has industry-leading capabilities across businesses to drive robust EPS CAGR over the next 3-5 years.
Analysts at JM Financial believe that RIL could still drive a robust 14-15% EPS CAGR over the next 3-5 years with Jio’s ARPU expected to rise at 10% CAGR over FY23-28 with ARPU being on a structural uptrend given the industry structure, future investment needs, and the need to avoid a duopoly market. Further, strong growth momentum continues in the company’s retail business as RIL is driving omni-channel capabilities across segments, said the brokerage.
Brokerage firm Prabhudas Lilladher has a ‘Accumulate’ rating on Titan Company stock with a target price of Rs 3,300 per share. Titan has entered into a share purchase agreement to acquire an additional 27.18% equity stake in CaratLane. According to the brokerage, Titan will be able to fully leverage growth prospects in light jewellery with omnichannel play in Caratlane.
According to analysts at Prabhudas Lilladher, post the acquisition, Titan will hold 98.28% stake in Caratlane with balance held by employees under the ESOP scheme. "The stake sale consolidates the holding of Titan in Caratlane which holds significant scope of growth in the coming year. We believe Titan will have to part-fund the acquisition with borrowings (Rs 2,000-2,500 crore) which will be retired over the coming couple of years. Given the magnitude of investment in Caratlane, we don’t rule out a merger in the coming 1-2 years," they said.
Motilal Oswal has a ‘Buy’ rating on Motherson Wiring stock with a target price of Rs 70 per share. According to the brokerage, as a leading full-system wiring harness solutions provider, the company is uniquely positioned to capitalize on these industry trends. Its pan-India footprint and strong support from parent companies allow it to support customers, said the brokerage.
Analysts at Motilal Oswal expect a gradual recovery in the operating performance of Motherson Sumi Wiring from 2HFY24, primarily driven by the increased production and utilization of the new plant. "We believe it deserves rich valuations driven by a) its strong competitive positioning, b) top decile capital efficiencies, and c) it being a beneficiary of EVs and other megatrends in autos," they said.
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