Stock brokerages including Axis Securities, ICICI Securities, Sharekhan, and Motilal Oswal have come out with research reports on select stocks namely Ashok Leyland, Reliance Industries (RIL), Hindustan Aeronautics (HAL), and Zomato. Here's what brokerages said about these counters
Brokerage firm Axis Securities has a ‘Buy’ rating on Ashok Leyland stock with a target price of Rs 205 per share. According to the brokerage, Ashok Leyland remains well-positioned to benefit from a longish CV upcycle
“We remain positive on the long-term growth trajectory of Ashok Leyland company with better margins led by operational efficiencies, material cost reduction program, softening of commodity costs, and pricing discipline, and expect 8% CAGR volume growth over FY23-26E,” said Axis Securities in its report. It forecasts the company to post Revenue, EBITDA, PAT growth of 11%, 22%, and 34% CAGR over FY23-26E
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ICICI Services has a ‘ADD’ rating on Reliance Industries (RIL) stock with a target price of Rs 2,650 per share. According to the brokerage, RIL has continued its quest to create a diverse well-rounded portfolio of earnings growth over the last 5 years and this year has seen further strengthening of the same
ICICI Securities has tweaked its earnings estimates marginally to factor in higher depreciation, lower other income and higher tax partly set off by an increase in earnings in digital services (ex JIO). EPS reduced by 2% each for FY24 and FY25E. "At our revised estimates, we still see consolidated EPS CAGR at a material 18.6% over FY23-FY25E, with a lower 15.1% CAGR in EBITDA," said the brokerage about RIL, while estimating a 5% upside in the near-term
Brokerage firm Sharekhan has a positive view on Hindustan Aeronautics (HAL) stock, and expects an upside of 14-16% from Rs 3,788 levels. According to the analysts, HAL has strong government support, proven execution capabilities and a healthy cash balance
According to analysts at Sharekhan, HAL’s impending deal with GE and potential export tie-up with countries like Argentina can provide strong long-term growth opportunities. "The company has a healthy order book with more than three years of revenue visibility. Once the execution of large orders like LCA (Mk1A) pick up pace, it could post double-digit revenue growth from FY25E onwards, and it should stabilise at 14-15% sales growth from FY2026 onwards. The company is debt-free and has strong cash & cash equivalents and healthy return ratios," they said
Motilal Oswal has a ‘buy’ rating on Zomato stock with a target price of Rs 110 per share. The brokerage remains positive on the long-term growth opportunity for Zomato, and do not expect competition to intensify further despite the entry of ONDC in the space
"The food delivery business is still in a nascent stage in India with a long runway for growth. With a dominant market share and strong growth in the food delivery business and Hyperpure, we expect Zomato to report a strong 43% adj. revenue CAGR over FY23-25. We now estimate Zomato to turn positive on reported EBITDA by 4QFY24, and deliver c5% EBITDA margin in FY25, which should further drive profitability," said Motilal Oswal in its report
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