Stock brokerages such as Axis Securities, Geojit Financial Services, Motilal Oswal, and Nuvama Institutional Equities have come out with research reports on select stocks namely Lupin, Natco Pharma, Tube Investments, Vijaya Diagnostic. Here's what brokerages said about these counters.
Axis Securities has a ‘Buy’ rating on Lupin shares with a target price of Rs 950. Lupin has received approval for a generic version of Spiriva HandiHaler from USFDA in the US market. It has also launched Darunavir in Q1FY24 in the US market. Both the launches, can help improve company's margins, according to the brokerage.
Analysts at Axis Securities get more confidence in Lupin’s business due to the launch of the 2 products where Lupin has a first-mover advantage. “We believe both these products could increase the gross margins by 100 bps in the next two years. We have increased our target price to Rs 950 (from Rs 825) with Buy recommendations,” said analysts.
Geojit Financial Services has a ‘Buy’ rating on Natco Pharma stock with a target price of Rs 765 per share. The brokerage remains optimistic about Natco’s future profitability, backed by the export formulations, traction in CTPR and Revlimid sales, and recovery in domestic formulations.
Analysts at Geojit Financial expect Natco’s revenue and operating performance to improve on the back of strong agro sales, a focus on US front-end business, increased R&D and new launches of niche molecules with high entry barriers. “The sale of Revlimid and CTPR promises strong growth in terms of revenue and profitability in the near term,” said analysts.
Motilal Oswal has a ‘buy’ rating on Tube Investments shares with a target price of Rs 3,560. According to the brokerage, the company offers a robust growth story, driven by multiple factors.
According to analysts at Motilal Oswal, Tube Investments offers a robust growth story, driven by reasonable growth in the core business and by leveraging strong cash flows of the core business (TI-1) to systematically incubate future growth platforms (TI-2) and opportunistic acquisitions of stressed assets (TI-3) at attractive prices.
Nuvama Institutional Equities has a ‘Buy’ call on Vijaya Diagnostic stock with a bull case fair value of Rs 490 per share. According to the brokerage, Vijaya’s differentiated integrated model, targeted expansion and quality focus provides growth visibility and should hold it in good stead.
According to analysts at Nuvama, Vijaya remains at the forefront of adopting the latest medical technologies. This provides it a clear edge over competitors. “Vijaya’s higher B2C share, focused expansion, and a differentiated integrated model should hold it in good stead. We forecast a revenue, PAT FY23-25 CAGR of 15% and 28% respectively,” said analysts.
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