Stock brokerages including JM Financial, Nirmal Bang Institutional Equities, Nuvama Institutional Equities, and Motilal Oswal have come out with research reports on select stocks namely Hero MotoCorp, State Bank of India (SBI), BHEL and Star Health. Here's what brokerages said about these counters
Brokerage firm JM Financial Services has a ‘Buy’ rating on Hero MotoCorp stock with a target price of Rs 3,700 per share. According to the brokerage, the company is strengthening its market position and seems to be making a strong comeback as an all-round 2W player. Hero MotoCorp is its top pick in the 2W space
Analysts at JM Financial said, "With moderating inflation and gradual rise in real rural wages, rural consumption is expected to gradually pick up. Also, with current year being a pre-election year, government spends on rural development and infrastructure is expected to continue and drive demand recovery during 2HFY24. With the help of new model launches and Hero MotoCorp’s exposure to the rural segment, we expect the company to benefit from rural consumption recovery. Softening commodity prices and positive operating leverage are expected to aid margin recovery."
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Nirmal Bang Institutional Equities has a ‘Buy’ rating on State Bank of India (SBI) stock with a target price of Rs 698 per share. According to the brokerage, despite being in a position to manage its NIM better due to ample liquidity on the balance sheet and higher risk density, it is growing in a risk-calibrated manner and is more focused on strengthening structures on ground
According to analysts at Nirmal Bang, SBI is confident of clocking a healthy double-digit growth, in line with system credit growth for FY24. "This growth will be led by continued traction in RAM segments, disbursement of corporate pipeline of Rs 3.5 tn over the next few quarters, and normalisation in international advances growth," they said. They expect the lender to maintain present healthy level of RoA, driven by prudent loan book expansion, re-pricing of MCLR loans, higher fee & forex income and effectively managing asset quality
Brokerage firm Nuvama Institutional Equities has a ‘Buy’ call on BHEL stock with a target price of Rs 156 per share. While the government focus has shifted towards renewables, the brokerage believes that thermal ordering will revive given a challenging 2030 RE target
"We expect the annual thermal market to be in the range of 4-6 GW, with limited participation from private players. Limited competition (barring L&T), will enable BHEL garner a higher share in the overall market (100% in FY18), currently estimating at 50%, and better margins. Reduction in slow-moving order provides comfort to our revenue estimates for FY25/26," Nuvama Institutional Equities said in its report
Motilal Oswal has a ‘buy’ rating on Jhunjhunwala portfolio stock Star Health with a target price of Rs 730 per share. The brokerage expects the insurer to clock 20% retail health premium CAGR over FY23-25, led by Increasing sum assured per policy; Price hike in its flagship product, and Deeper penetration that is driving growth in the number of policies
"We remain optimistic on the overall growth prospects for Star Health backed by: a) Its strong growth potential in retail health segment due to its underpenetration, b) Healthy earnings growth owing to normalization of claims ratio, and c) Limited cyclicality risk (commercial lines and motor insurance have high cyclicality risks)," Motilal Oswal report said, adding that company’s overall gross premium to report 10% CAGR in group business. Claims ratios are likely to normalise to around 64% with a combined ratio at around 93%. "These are likely to propel Star Health's profitability over FY23-25," it added
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