Stock brokerages including Nuvama Institutional Equities, Sharekhan, JM Financial, and Motilal Oswal have come out with research reports on select stocks namely Coal India, JK Lakshmi Cement, BHEL, and Paytm. Here's what brokerages said about these counters.
Brokerage firm Nuvama Institutional Equities has a ‘Buy’ rating on Coal India stock with a target price of Rs 361 per share. According to the brokerage, in light of a potential uptick in coal demand from the power sector in H2FY24, the odds of upside to e-auction prices are high with diversion of coal to the power sector.
Analysts at Nuvama Institutional Equities said, "In light of increasing volume, improving e-auction prices, partial FSA price hike and cost peaking out, we believe Coal India (CIL) would continue to generate much above-average EBITDA in the foreseeable future. Besides, it should continue to pay out a DPS of at least Rs 20 each in FY24E and FY25E—implying a dividend yield of around 8%."
Continue viewing BT Visual Story
Catch the latest business news, share market updates, expert analysis and exclusives only on BTTV.in
Sharekhan has a ‘Buy’ rating on JK Lakshmi Cement stock with a target price of Rs 830 per share. According to the brokerage, the company is expected to benefit from sustained rural sector demand along with improvement in infrastructure demand.
"The pricing environment in key regions remains healthy. However, JK Lakshmi Cement is facing capacity constraints with clinker capacity utilisation at peak level over the trailing peak quarters. The company's expansion plans at UCW (1.5MTPA clinker and 2.5MTPA grinding unit) are expected to be completed by Q2FY25, which would provide the next leg of growth from FY25," said Sharekhan in its report.
Brokerage firm JM Financial Services has a ‘Buy’ call on BHEL stock with a target price of Rs 165 per share. The brokerage expects the company to deliver revenue, EBITDA, PAT CAGR of 17%, 76%, and 91% respectively over FY23-26E supported by healthy ordering, improving execution and the benefit of operating leverage.
"With the increasing incidence of energy and peak power shortages in India, ordering for thermal power projects is about to rebound in a meaningful way over the next 3-4 years. Along with a revival in thermal capex, BHEL will also benefit from its strategic diversification into non-power businesses in recent years. It is transforming itself into a diversified engineering company with fast-growing areas like railways, defence, and renewable energy driving long-term sustainable growth," said analysts at JM Financial.
Motilal Oswal has a ‘buy’ rating on Paytm stock with a target price of Rs 1,000 per share. According to the brokerage, Paytm’s business momentum continues to be strong for the company with robust growth in GMV and disbursements.
Paytm’s strong business momentum, robust growth in GMV and disbursements coupled with strong traction in subscription devices, will lead to a healthy growth in total revenue, said analysts at Motilal Oswal. “We value PAYTM based on 17x FY28E EV/EBITDA and discount the same to FY25E taking a discount rate of ~15%. We thus value the stock at Rs 1,000, which implies 4.7x FY25E P/Sales,” they said.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.