Stock brokerages including Motilal Oswal, Nuvama Institutional Equities, ICICI Securities, and Axis Securities have come out with research reports on select stocks namely Infosys, Coforge, Tata Communications, and ITC. Here's what brokerages said about these counters
Motilal Oswal has a ‘Buy’ rating on Infosys stock with a target of Rs 1,600 per share. Despite the sharp cut in revenue guidance, the company remains confident of achieving EBIT margin in the range of 20-22%, the brokerage noted
Analysts at Motilal Oswal expect FY24 revenue growth at 2.6% CC, slightly above the mid-point of the guidance band. “Despite the near-term weakness, we expect Infosys to be a key beneficiary of the acceleration in IT spends in the medium term,” the brokerage said
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Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on Coforge stock with a target price of Rs 5,520 per share. According to the brokerage, Initiatives during the last few years have transformed Coforge into a niche midcap IT services company with deep domain expertise in its core verticals, which would help it in capturing the strong digital tailwind
Nuvama Institutional Equities analysts believe that the strong deal flow momentum, despite uncertainty in decision-making process, reinforces their positive stance on the sector. “We see Coforge outperforming peers, backed by its strong positioning in the digital transformational space, ability to win large deals and favourable portfolio mix,” the brokerage said
Brokerage firm ICICI Securities has a ‘buy’ rating on Tata Communications stock with a target price of Rs 1,850 per share. The company expects scale and synergy benefits to help drive margin improvement for these businesses over the next few years. It has already started releasing the benefits of strong production capabilities from The Switch, and has started penetrating the European market
“We continue to like Tata Communication’s determination to become a strong digital services player, which we believe may drive significant value creation. However, EBITDA margin can remain sub-optimal for 1-2 years due to merger of loss-making entities The Switch and Kaleyra. TCom remains committed on turnaround of these businesses, and potential synergy benefits to services offering,” said ICICI Securities
Brokerage firm Axis Securities has a ‘Buy’ rating on ITC stock with a target price of Rs 540 per share. The brokerage believes that the narrative around ITC is getting stronger as all its businesses are on the right track
Stable cigarette volume growth led by market share gains and new product launches; FMCG business reaching the inflexion point with improving EBIT margins; strong and stable growth in hotels as travel, wedding, and corporate activities pick up, moreover recent comment on possible demerger of hotels business will boost profitability for ITC, said Axis Securities, adding that steady and decent performance in paperboard and agribusiness, reasonable valuation provides a huge margin of safety
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