Stock brokerages such as Emkay Global, HDFC Securities, Nirmal Bang, and LKP Securities have come out with research reports on select stocks namely Ethos, CSB Bank, Gillette India, Sona BLW. Here's what brokerages said about these counters
Emkay Global has a ‘buy’ rating on Ethos stock with a target price of Rs 1,540 per share. According to the brokerage firm, timing mismatch between rupee depreciation and price revisions by brands are likely to impact FY24 margin, but FY25/26 should not see any hit
Analysts at Emkay Global forecast around 30% earnings CAGR for Ethos over FY23-26E, led by 12% SSG in new watch retail and near-doubling of its retail network. “Our WC estimates assume stable trends to account for the strong expansion plans,” they said in a report
HDFC Securities has a ‘Buy’ rating on CSB Bank stock with bull case fair value of Rs 327 per share. As per the brokerage, the asset quality of the bank has improved significantly over last one year, and the trend of strong recoveries and upgrades are expected to continue.
Analysts at HDFC Securities believe that investors can buy CSB Bank in the band of Rs 267-272 and add more on dips in the band of Rs 237-242 for the base case fair value of Rs 301 and for the bull case fair value of Rs 327 over the next 2-3 quarters
Nirmal Bang has a ‘Buy’ rating on Gillette India shares with a target price of Rs 5,550. The brokerage believes that a combination of continued healthy growth in Female Grooming products; recent entry into electric shaving products/trimmers/epilators; efforts to target influencers; and potential premiumization in toothbrushes could transform the growth prospects of Gillette India
Nirmal Bang estimated a CAGR of around 7.2% over FY23-FY25E, assuming that as the material cost decline continues, gross margin and EBITDA margin can revert to earlier levels. "One-year forward P/E multiple is near the lowest that the company has traded in its history post 30%+ decline in the stock price from its last 2 years peak. Return ratios are healthy, with ROCE of over 40%," the brokerage said
LKP Securities has a ‘Buy’ call on Sona BLW stock with a target price of Rs 624 per share. According to the brokerage, the company has several EV products on the roadmap, which give strong growth visibility without assuming any market growth
Analysts at LKP Securities expect Production Linked Incentive (PLI) benefit to flow through from FY25 onwards after products are approved in FY24. “The addition of yet another EV product this quarter reinforces our view that the addressable market for Sona will keep expanding, and hence it should trade at premium valuations,” they said
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