Stock brokerages including CLSA, HDFC Securities Institutional Equities, Axis Securities, and Motilal Oswal have come out with research reports on select stocks namely Adani Ports, Sobha, Birla Corporation and Titan Company. Here's what brokerages said about these counters
Brokerage firm CLSA has a ‘Buy’ rating on Adani Ports stock with a bull case fair value of Rs 878 per share. According to the brokerage, the acquisition of Krishnapatnam and GPL, as well as new facilities such as liquefied natural gas, liquefied petroleum gas and container terminals at Mundra, and the start of Vizhinjam should play a pivotal role in Adani Ports’ FY23-25 volume growth
According to the CLSA, Adani Ports has maintained its guidance for double-digit growth in its port traffic, revenue and Ebitda in FY24 despite an uncertain macro climate. The stock is below its average PE. "We view ADSEZ as a strategic asset with long-duration port concessions, trading at a 43% discount on FY25CL PE to Container Corp," it said. Analysts at CLSA expect Adani to fund its Capex plan through internal accruals as well as drawing new debt but remain in its guided range of leverage
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HDFC Securities Institutional Equities has a ‘Buy’ rating on Sobha stock with a target price of Rs 1,024 per share. As per the brokerage, With the regulatory overhang largely behind, the robust financial health of the parent, and a strong demand undercurrent in Bengaluru market, Sobha has hit the Reset-Restart button. There is a clear refocus on deleveraging, tying up new business development, and ramping up new launches
"The Sobha brand enjoys huge client loyalty, differentiated design/architecture in premium offerings, in-house construction, novelty factor and 15-25% brand premium. We believe that rerating will be contingent on presales outperformance, robust cash flow generation, achieving net cash status, and acceleration in new launches from captive and new land capex/tie-ups. The rerating equation is seeing shrinking headwinds on the denominator and expansion in tailwinds on the numerator, which can lead to a robust rerating," said HSIE in its report
Brokerage firm Axis Securities has a ‘Buy’ call on Birla Corporation stock with a target price of Rs 1,400 per share. According to the brokerage, the company's key competitive strengths include: High proportion of blended cement forming 91% of the total cement sales; Dominant player in the demand-accretive central region; Robust sales and distribution network; Expanding market reach, and Focus on the sale of high-margin premium cement
As per analysts at Axis Securities, Housing for All; Real Estate Growth; Govt’s focus on infrastructure development; Increasing rural Income; and Proactive policy support by the government are the growth drivers for Birla Corporation. Its operating performance is set to improve on account of Several cost rationalisation initiatives; Encouraging demand traction emerging from the government expenditures on various infras schemes; A strong position in the demand-accretive central region; Ramp up of Mukutban capacity; and Higher sale of premium products, they said
Motilal Oswal has a ‘buy’ rating on Titan Company stock with a target price of Rs 3,570 per share. According to the brokerage, Titan has a strong runway for growth in the consumption space in India, with robust earnings growth visibility and compounding for the long term
According to analysts at Motilal Oswal, while the recent run-up in gold prices has led to near-term postponement of demand, Titan has historically performed well when gold prices surged. Since its making charges are also based on the percentage of value of gold, margins will improve after a lag. "Given its sub-10% market share in jewellery and the struggles of unorganised and other organised peers, we see a promising growth outlook for Titan," they said
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