Stock brokerages such as Nuvama Institutional Equities, Prabhudas Lilladher, Axis Capital, and Motilal Oswal have come out with research reports on select stocks namely Reliance Industries, Avenue Supermarts, Bikaji Foods, Lemon Tree. Here's what brokerages said about these counters
Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on Reliance Industries (RIL) stock with a target of Rs 3,205 per share. RIL announced the demerger of its financial services biz which would be renamed as Jio Financial Services (JFSL). Back in 2005, when RIL demerged 4 entities, markets actually rewarded RIL. After the split, shareholder wealth swelled 38%. Should the market have a déjà vu moment this time too, shareholders’ wealth could potentially increase by 3%–5%, the brokerage noted
"We argue RIL’s O2C (refining) shall benefit greatly from the Golden Era of Refining. RIL’s upstream division is likely to remain the key beneficiary of elevated gas prices along with faster-than-anticipated KG-D6 production ramp-up. We argue, it shall nearly match retail EBITDA by FY24. RIL’s venture in new energy business shall unleash the next leg of growth, besides aiding its conventional business," said Nuvama
Domestic brokerage Prabhudas Lilladher has a ‘Buy’ rating on Avenue Supermarts stock with a target price of Rs 4,587 per share. According to the brokerage, DMart needs to restructure its apparel business, given new threat perception, which will take a few quarters for turnaround
“We believe DMart has a huge runway to grow with 1500+ store potential and scale up in DMart Ready. We expect growth pressures to sustain in 2Q also before recovery in 2H24. D’Mart lacks near triggers, although the stock remains a long-term Buy,” said Prabhudas Lilladher in its report
Brokerage firm Axis Capital has initiated coverage on Bikaji Foods stock with a ‘Buy’ rating and a target price of Rs 500. A strong brand recall in a market that is highly impulse-driven, a multi-category portfolio, and a pan-India distribution network coupled with strategically placed manufacturing units place it well to capture the robust growth in the savoury snacks and sweets market, the brokerage noted
According to analysts at Axis Capital, Bikaji Foods' revenue momentum will be driven by robust growth among the organised ethnic snacks players; the addition of manufacturing facilities; rapid distribution expansion across the focus states; and portfolio expansion in the core states
Domestic brokerage Motilal Oswal Financial Services has a ‘Buy’ rating on Lemon Tree stock with a target price of Rs 115 per share. According to the brokerage, Aurika MIAL’s addition to Lemon Tree’s portfolio will be a game changer. “The addition will result in improved ARR, brand mix and margins at the consolidated level,” it said
"The corporate restructuring plan will help the company in simplifying its current corporate structure and also accelerate its debt repayment target. FY23 was a robust year for the company and we expect the strong momentum to continue going forward, led by further improvement in occupancy on the back of a resilient demand scenario; an increase in ARR with the addition of Aurika MIAL; and strong addition of hotels under management contracts," said Motilal Oswal
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