Stock brokerages such as Motilal Oswal, LKP Securities, Jefferies, and Sharekan have come out with research reports on select stocks namely Reliance Industries, PNB, Zomato, Jyothy Labs. Here's what brokerages said about these counters
Brokerage firm LKP Securities has a ‘buy’ call on Punjab National Bank (PNB) with a target price of Rs 80. Analysts expect the bank’s NIMs to stay intact as MCLR book (35%) re-pricing in underway. Steady credit growth along with lower credit cost is likely to boost the return ratios, which makes the stock rewarding at an in-expensive valuation with strong associates, they said
“Our investment thesis is based on easing corporate stress with higher recovery;risk adjusted growth, and An “in-expensive” valuation. A bad loan recovery and sell-off to NARCL may clean up the balance sheet with NPA normalisation,” said LKP Securities in its report on PNB
Domestic brokerage Motilal Oswal has a ‘Buy’ rating on Reliance Industries (RIL) shares with a target price of Rs 2,825 apiece. “Our current SOTP-based TP for RIL does not include the JFS value; hence, this event could lead to value-unlocking potential for RIL,” it said in a note
JP Morgan has maintained its “overweight” stance on the RIL stock, with a target price of Rs 2,960 a share. Meanwhile, global brokerage Bernstein has pegged the enterprise valuation of RIL's stake in Reliance Retail at $111 billion
International brokerage Jefferies has a ‘Buy’ rating on Zomato shares with a bull case target price of Rs 150. The brokerage believes that With only around 20 million monthly transacting users currently, Zomato has a long runway for customer acquisition and revenue growth, albeit this may come at the cost of near-term profitability. The platform also has the optionality of expanding into other adjacent categories such as grocery, etc
Analysts at Jefferies in their bull case scenario expect a 30% CAGR in delivery revenue over FY22-26. “We value Zomato's delivery business at an exit multiple of 2.2x FY25E GM and quick commerce at 1x FY25E GMV, to arrive at a price target of Rs 150,” they said. In the base case scenario, they expect a 25% CAGR in delivery revenue over FY22-26, and arrive at a price target of Rs 100
Sharekhan has a ‘buy’ rating on Jyothy Labs stock with a target price of Rs 175 per share. According to the brokerage, the stock is trading at 29.2x/24.3x its FY24E/FY25E earnings, which is at a discount to some large consumer goods stocks
According to analysts at Sharekhan, product innovation and availability of relevant product assortment for general trade/e-commerce/modern trade and distribution expansion will help Jyothy Labs to continue to gain market share in key categories. "Improving cash flows, focus on achieving double-digit volume growth, and attractive valuations make it a good mid-cap pick in the consumer goods space," they said
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