Stock brokerages such as ICICI Securities, Motilal Oswal, Prabhudas Lilladher and Emkay Global have come out with research reports on select stocks namely PVR INOX, ICICI Lombard, Bandhan Bank, Godrej Consumer Products. Here's what brokerages said about these counters.
ICICI Securities has a ‘buy’ rating on PVR INOX stock with a target price of Rs 1,950 per share. “At current valuations, we think the stock is a strong BUY with >40% upside and a favourable risk-reward skew (3.56:1),” the brokerage firm said.
Analysts at ICICI Securities see the content pipeline for PVR Inox improving from Q2FY24E and occupancy levels improving in tandem, hence, they expect a mean reversion of valuation multiples to historical averages. Occupancy improvement to pre-covid level delayed beyond FY25E and merger synergies, efficiencies of scale not playing out are among the key risks.
Motilal Oswal has a ‘Buy’ rating on ICICI Lombard shares with a target price of Rs 1,150. According to the brokerage, the growth in the motor segment going ahead is likely to be back ended. "Regarding the health segment, the benefits derived from price hikes and the enhanced efficiency of the agency channel are expected to translate into improved profitability," it said.
ICICI Lombard management continues to guide for reaching a combined ratio of 102% and RoE of high teens by FY25. Motilal Oswal believes these are achievable with scale benefits driving cost ratios lower; a better mix in the health segment with a higher share of retail.
Prabhudas Lilladher has a ‘Buy’ rating on Bandhan Bank shares with a target price of Rs 270. According to the brokerage, the stock after a decent correction has made a higher bottom formation with the support lying strong at around 230 levels.
Pradhudas Lilladher in its report said, “The RSI indicator has reversed its trend on the positive side signaling a buy and also with good volume participation, we anticipate the (Bandhan Bank) stock to move on further till 270 level. We recommend a Buy keeping a stop loss of 230 for an upside target of 270.”
Emkay Global has a ‘Buy’ call on Godrej Consumer Products stock with a target price of Rs 1,225 per share. With a revamped management team, GCPL targets resolving business issues and makes businesses structurally sound, according to the brokerage.
Analysts at Emkay Global Securities said that what makes Godrej Consumer Products attractive is its healthy margin profile, despite business issues. “Incrementally, on the back of actions by the new management, we see low-hanging fruit in cost-savings, which in turn will be redeployed to drive growth,” they said.
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