Produced by: Harshita
Stock brokerages such as Bernstein, JM Financial, Motilal Oswal, and Nuvama Institutional Equities have come out with research reports on select stocks namely Reliance Industries, Hero MotoCorp, Oberoi Realty, PVR INOX. Here's what brokerages said about these counters.
Bernstein has an ‘Outperform’ rating on Reliance Industries shares with a target price of Rs 3,040. According to the brokerage, the clean energy business of the Mukesh Ambani-led company is probably worth Rs 200 per share but it has plenty of scope for expansion overtime.
Analysts at Bernstein believe that RIL can potentially achieve $10 billion in revenue from clean energy, which would represent 40% of the total addressable market (TAM). By 2030, they estimate RIL to capture 60% of solar, 30% of battery, and 20% of hydrogen TAM.
JM Financial has a ‘buy’ rating on Hero MotoCorp stock with a target price of Rs 3,200. Recovery in rural demand will be a key monitorable, and positive operating leverage and softening commodity prices will also support margin recovery going ahead, the brokerage said.
According to analysts at JM Financial, Hero MotoCorp’s near-term focus will also be on scaling-up EVs through network and product expansion. “Richer product mix, accelerated growth in spares revenue, higher localisation, operating leverage, and softening RM are the key levers for profitable growth going forward,” they said.
Motilal Oswal has a ‘buy’ rating on Oberoi Realty shares with a target price of Rs 1,140. Given the strong project pipeline, the brokerage estimates Oberoi Realty to clock bookings of Rs 56 billion in FY24 (up 73% YoY), with Rs 26 billion coming in from new projects.
According to analysts at Motilal Oswal, Oberoi Realty can significantly scale up its residential segment in FY24 as its key projects are finally set for launch. The conclusion of new transactions can help the company sustain robust sales beyond FY24. “Strong cash generation will allow the company to look for aggressive business development opportunities, which will provide further growth visibility,” they said.
Nuvama Institutional Equities has a ‘Buy’ call on PVR INOX stock with a target price of Rs 1,990 per share. “A dominant share in multiplexes and synergies imply PVR INOX shall benefit from potential recovery,” it said.
Analysts at Nuvama believe that with its primary focus on the movie exhibition business, the combined entity (PVR+INOX) will continue to ramp up margin-accretive segments such as F&B revenues and advertisement revenues, which in our view will drive the EBITDA expansion for the business. Aggressive expansion and focus on innovation will deliver growth for the business over the longer term.
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