Stock brokerages including Bernstein, Nuvama Institutional Equities, ICICI Securities, and Emkay Global have come out with research reports on select stocks namely Reliance Industries, Escorts Kubota, Metro Brands, PowerGrid. Here's what brokerages said about these counters
Bernstein has an ‘Outperform’ rating on Reliance Industries Ltd (RIL) stock with a revised target price of Rs 3,000. According to the brokerage, RIL is on the path of value unlocking across business segments, evident from the recent demerger of Jio Financial Services (JFS), buyout of minority investors in Reliance Retail and the stabilising of telecom capex
According to Bernstein report, value unlocking by Reliance has repositioned the company to focus on four key growth pillars - expansion of oil-to-chemicals business into downstream chemicals with investments by strategic partners; building Reliance Retail stores in thousands and scaling omnichannel; the telecom segment is expanding with 5G rollout; and the company continues to scale up in new energy by accelerating investments
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Nuvama Institutional Equities has a ‘Buy’ rating on Escorts Kubota stock with a target price of Rs 3,000 per share. The brokerage expects the company’s margin to recover from 9.4% in FY23 to 13.5% in FY25E, on better pricing, localisation, and cost savings. EPS CAGR expected at 54% over FY23–25E. Led by robust FCFs, net cash is expected to increase from Rs 49.5bn in FY23 to Rs 58.5bn in FY25E
“We expect Escorts to grow at double the industry’s pace over the next five years, owing to Global Kubota’s (GK) support in the form of the merger of Kubota India trading entity; opening up of new export opportunities; and technological support for product development. We build in revenue/earnings CAGR at 25%/54% over FY23-25E,” said analysts at Nuvama
ICICI Securities has a ‘buy’ rating on Jhunjhunwala portfolio stock Metro Brands with a target price of Rs 1,200 per share. The brokerage likes the continued outperformance in the women and kids wear segment
“We cut our earnings estimates by 10-2% for FY24-25E. We model revenue/EBITDA/PAT CAGR of 19%/19%/20% respectively over FY23-FY25E,” said ICICI Securities, adding that the key risks are delay in store addition, and likely increased competition from regional players trying to premiumise
Brokerage firm Emkay has a ‘Buy’ rating on PowerGrid stock with a target price of Rs 270 per share. The brokerage believes that capex uptick in the Indian transmission sector is a long-term driver, which is about to kick in
"The pipeline of transmission projects to be tendered in the medium term has increased and the company estimates annual capex of around Rs 210 bn till 2032. This implies an improved growth rate in the medium term, from a low single-digit to a mid-high single digit, thus indicating better exit multiples," said Emkay Global, adding that risks include delay in tendering and cut in the base regulated RoE
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