Stock brokerages including Axis Securities, Nuvama Institutional Equities, B&K Securities, and Motilal Oswal have come out with research reports on select stocks namely Ashok Leyland, ITC, Titagarh Rail Systems, Tata Motors. Here's what brokerages said about these counters
Axis Securities has a ‘Buy’ rating on Ashok Leyland stock with a target of Rs 210 per share. The company remains well-positioned to benefit from a cyclical recovery in CVs, specifically in higher tonnage commercial MHCV and Passenger MHCV segment, the brokerage noted
“We remain positive on the long-term growth trajectory of Ashok Leyland with better margins led by operational efficiencies, material cost reduction program, softening of commodity costs, and pricing discipline, and expect 8% CAGR volume growth over FY23-26E,” said Axis Securities in its report
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Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on ITC stock with a target price of Rs 560 per share. ITC stock has corrected after news of the company demerging its hotels business. The company’s shareholders shall continue to own 100% of Hotels (60% directly, 40% via ITC). This is the best possible structure to ensure synergies, stability, and lower stamp duties, the brokerage said
Nuvama institutional Equities analysts believe that the demerger shall help the new, focussed entity to attract appropriate investors and strategic partners/collaborations. It shall unlock value by providing them a direct stake in the new entity along with an independent market-driven valuation. “In light of this, we reckon a revised SoTP-based target price of Rs 560 for ITC stock,” said Nuvama
B&K Securities has a ‘buy’ rating on Titagarh Rail with a target price of Rs 833 per share. India’s rail industry is witnessing structural recovery on the back of the government’s efforts on infrastructure development and capacity creation, creating a profitable opportunity for wagon makers, as per the brokerage
“With strong technical expertise and capacity expansion plan, we expect Titagarh Rail Systems to emerge as one of the biggest beneficiaries in the railway value chain. The focus on diversification through passenger rolling stock, Vande Bharat trains, Wheelset JV should help reduce the dependence on wagon segment, open new markets, and drive sustainable growth,” said B&K Securities
Brokerage firm Motilal Oswal has a ‘Buy’ rating on Tata Motors stock with a target price of Rs 750 per share. The brokerage believes that Tata Motors should witness a healthy recovery as supply-side issues ease (for JLR), along with a better mix, lower discounts and operating leverage (for all three businesses)
Tata Motors will benefit from the CV uptrend and stable growth in PVs; Company-specific volume/margin drivers, and a sharp improvement in FCF as well as a reduction in net debt in both JLR and the India businesses,” said Motilal Oswal in its report
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