Stock brokerages such as Phillip Capital, Geojit Financial Services, Motilal Oswal, and Antique Stock Broking have come out with research reports on select stocks namely JK Cement, Cochin Shipyard, SBI, Titagarh Rail Systems. Here's what brokerages said about these counters
Phillip Capital has a ‘Buy’ rating on JK Cement shares with a target price of Rs 3,344. The company continues to remain a classic case-study for the brokerage, proving that “valuations are more a function of sustainable profitability”. It is the only mid-cap to trade at near-par or even higher to valuations of large-cap/pan-India players (before it announced its paint venture) despite being just a fraction of their capacity
Analysts at Phillip Capital believe that as JK Cement continues to prove itself with extremely strong business fundamentals, the sentimental valuation de-rating that happened with the announcement of its paint venture is now slowly getting nullified – implying material rerating potential from current levels
Geojit Financial Services has an ‘Accumulate’ rating on Cochin Shipyard stock with a target price of Rs 617 per share. The current order backlog is healthy at around Rs 21,400 crore, which has improved earnings visibility for the next 2-3 years. The order pipeline is expected to improve going ahead, it said
Analysts at Geojit Financial said, “Given the improvement in order book visibility, capacity expansion, and strong execution capabilities, we continue to maintain our positive view on the stock. We value Cochin Shipyard at a P/E multiple of 14x on FY25E, with a target price of Rs. 617, and recommend to Accumulate.”
Motilal Oswal has a ‘buy’ rating on State Bank of India (SBI) shares with a target price of Rs 700. SBI delivered a strong performance in FY23, propelled by steady business, revenue growth, and controlled provisions. The brokerage estimates the momentum to remain healthy as utilisation levels improve, while retail growth is likely to remain steady, according to the brokerage
According to analysts at Motilal Oswal, a higher mix of floating loans and CASA mix will support margins even as the cost of deposits picks up at a faster pace. Asset quality outlook remains healthy as restructured book remains in control. They estimate the credit cost to remain in control. SBI remains Motilal Oswal’s preferred ‘BUY’ in the Financials sector
Antique Stock Broking has a ‘Buy’ call on Titagarh Rail Systems stock with a target price of Rs 694 per share. It is India's undisputed leader in the wagon manufacturing space, now it is also among India's very few integrated manufacturers of passenger rail systems. “We believe that the company has created a manufacturing set-up, which is difficult to replicate, and has the capacity to grow its turnover to over Rs 90-100 bn over the next five years,” the brokerage said
Analysts at Antique Stock Broking believe that Titagarh has the strategy and the plan ready for sustained growth in the long term. “We believe that given the growth potential beyond FY25E, superior returns, and the company's management quality, valuations are very attractive, and provide a long-term wealth creation opportunity,” the brokerage said
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