Produced by: Harshita Tyagi
Designed by: Hitansh Gaur
Stock brokerages including Emkay Global, UBS, Axis Securities, and Motilal Oswal have come out with research reports on select stocks namely ITC, Bharat Electronics, Indian Hotels Company (IHCL), and HDFC Bank. Here's what brokerages said about these counters.
Emkay Global has a ‘Buy’ rating on ITC stock with a target of Rs 525 per share. “Our positive stance on ITC relies on strong execution across business segments for which we remain upbeat,” the brokerage said while adding that ITC Hotels demerger value unlocking is likely to not be material, though will help improve return ratios.
“In our SOTP valuation, we ascribe 3% to Hotels business (valued at Rs 18 per share), where value unlocking is unlikely to be material for shareholders. But given the asset transfers, ITC’s returns profile would see sharp expansion,” said Emkay Global on ITC in its report.
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Global research and brokerage firms UBS has a ‘Buy’ rating on Bharat Electronics stock with a target price of Rs 162 per share. It believes that there is upside to BEL's strong US$20 billion+ new order pipeline, given its expanding competitive moat as a lead system integrator and sustained lead in executing multiple large/complex platforms simultaneously.
Analysts at UBS expect Bharat Electronics to have superior long-term growth and a robust return structure, led by diversifying revenue streams, with export penetration complemented by industry-leading investments in capacity and capability build-up, reflected in 10% of the top line invested in R&D and capex. Greater R&D and capex allocation by BEL will help it deliver on growth and profitability over 3-5 years, it added.
Axis Securities has a ‘buy’ rating on Indian Hotels Company (IHCL) stock with a target price of Rs 450 per share. The brokerage expects that the upcoming corporate travels and international tourists will add further growth to demand. Major events such as G20 and World Cricket in India would aid in the further growth of the industry.
“Current demand is led by strong domestic consumption patterns and supply constraints in key metropolitan areas. Domestic consumption patterns include leisure, weddings, conferences and other events. We expect increasing business travel and international tourists to further drive demand. Major events such as the G20 summit and World Cricket in India would fuel industry growth,” said Axis Securities on IHCL.
Brokerage firm Motilal Oswal has a ‘Buy’ rating on HDFC Bank stock with a target price of Rs 2,070 per share. The brokerage believes that the merger will enable the lender to build a more diversified and robust franchise with sustainable growth. The increased customer base, strong technological edge and robust distribution should help the bank improve cross-selling to customers over their life cycle with the bank.
HDFC Bank has become the largest banking franchise in the country by net worth. Analysts at Motilal Oswal estimate the bank to become the highest-profit-making financial entity from FY24E onward. “Relentless execution, strong governance standards, and superior underwriting will be critical for the bank to create shareholder wealth and deliver on its immaculate track record of a 20% earnings CAGR, which we expect the bank to sustain over the medium term,” they said.
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