Stock brokerages such as Motilal Oswal, Nuvama Institutional Equities, Elara Capital, HDFC Securities Institutional Equities have come out with research reports on select stocks namely Federal Bank, Dabur India, Vedant Fashions, Wipro. Here's what brokerages said about these counters
Domestic brokerage Motilal Oswal has a ‘Buy’ rating on Federal Bank stock with a target of Rs 155 per share. According to the brokerage, the lender's business growth in Q1FY24 was healthy, led by traction across segments. The liability franchise also remained strong, and asset quality ratio remained stable
"We broadly maintain our estimates as controlled credit costs and healthy other income compensated for higher opex. We estimate Federal Bank to deliver RoA and RoE of 1.3% and 15.8% respectively in FY25," said Motilal Oswal while reiterating its 'Buy' rating on Federal Bank stock
Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on Dabur India shares with a target price of Rs 705 apiece. According to the brokerage, the company is clocking a decent recovery aided by both organic and inorganic businesses
Dabur has racked up market share gains across 90% of its portfolio in FY23, thereby aggregating a three-year India business revenue CAGR of 11.2%. After a muted showing in FY23, led by flagging healthcare division, the India business has shown a good recovery in Q1FY24. Analysts at Nuvama are positive on the stock
Brokerage firm Elara Capital has a ‘Buy’ rating on Vedant Fashions shares with a target price of Rs 1,670. “Vedant Fashions’ flagship brand Manyavar is a pioneer in branded men’s celebration wear in ethnic wear. And leveraging this peerless positioning, expect the brand to beat intensifying competition,” the brokerage said
Elara Capital analysts favor Vedant Fashions given its market leadership, wide portfolio of brands, superior profitability, and command on supply chain. "Expansion of other brands – Twamev, Mohey and Manthan – may trigger the next leg of growth and boost profitability," they said. The brokerage expects the company's retail space to grow at 11.3% CAGR over FY23-25E
Domestic brokerage HDFC Securities Institutional Equities has a ‘Add’ rating on Wipro stock with a target price of Rs 410 per share. According to the brokerage, Wipro posted a broad-based revenue decline in Q1 and the Q2 guidance also points to growth challenges. While the bookings remain robust, the conversion, cancellation impact is also larger, reflecting a combination of portfolio and execution challenges
"Wipro's seasonally strong H2 supplemented by Q1 large deal bookings of $1.1 billion can put it back to sequential growth but with a quarter’s lag as compared to peers. While there aren’t any near-term catalysts, improved payout following an acquisitive strategy in the prior two years and valuations at 16x FY25E limit the downside risk," said HSIE analysts
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