Stock brokerages namely IIFL Securities, JM Financial, ICICI Direct, and Motilal Oswal have come out with research reports on select stocks namely Bikaji Foods, Deepak Fertilisers, BPCL, Tata Consumer Products. Here's what brokerages said about these counters
IIFL Securities has a ‘Buy’ rating on Deepak Fertilisers shares with a target price of Rs 730 per share. While the brokerage believes that Deepak Fertilisers is facing headwinds for FY24, the valuations are attractive
“We expect ammonia spreads to start normalising from year-end. While YoY growth in the upcoming quarters may look subdued given the high base, we believe benefits from Greenfield ammonia expansion will start being visible in FY25. Our estimates also assume moderation in Nitric Acid margins. But should they continue to be strong, there is upside risk. In this context, valuations are reasonable,” said IIFL Securities
JM Financial has a ‘buy’ call on Bikaji Foods stock with a target price of Rs 440. The brokerage believes that with a favourable RM scenario, improving utilisation levels and capex largely done; profitability, return metrics and cash flow generation are expected to improve
According to JM Financial, Bikaji Foods’ FY24 EBITDA margins will continue to improve over FY23. “It has strategically added new facilities to augment its manufacturing capabilities, which should help it improve direct reach in core markets, and scale up its presence in focus markets,” the brokerage said
Motilal Oswal has a ‘Buy’ call on Tata Consumer Products stock with a price of Rs 910. The brokerage firm expects TCP’s revenue, EBITDA, and PAT CAGR at 9%, 15%, and 24% respectively over FY23-25
According to Motilal Oswal, Tata Consumer Products is focusing on new growth engines such as Tata Sampann, NourishCo, Tata Soulfull, and the ready-to-eat/ready-to-consume business (Tata Smartfoodz); and is rapidly scaling up its distribution network along with digitization prowess across the supply chain, which will drive the next leg of growth
ICICI Direct has upgraded BPCL stock from ‘Hold’ to ‘Buy’ with a target price of Rs 430. In the current quarter, refining margins are likely to be subdued but countered by strong marketing margins, the brokerage said
“We expect refining margins to improve in H2FY24 with a rise in demand. BPCL has also set a capital outlay of Rs 1.4 lakh crore over the next five years for expanding into petchem, renewable energy and CGD business,” said ICICI Direct on BPCL stock
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