Stock brokerages including HDFC Securities, JM Financial, and Motilal Oswal have come out with research reports on select stocks namely Crompton Greaves, Nykaa, Schaeffler India, and Bajaj Finance. Here's what brokerages said about these counters.
Brokerage firm HDFC Securities has a ‘Buy’ rating on Crompton Greaves stock with a bull case fair value of Rs 367 per share. “We think the base case fair value of the stock is Rs 344 (30x FY25E EPS) and the bull case fair value is Rs 367 (32x FY25E EPS). Investors can buy the stock in Rs 308-314 band and add more on dips in Rs 270-276 band,” the brokerage said.
Analysts at HDFC Securities said, "We believe revenue acceleration will be visible gradually but in the interim cost increase may impact margin in the near term. In our opinion, if Crompton Greaves management executes this strategy well, then investors’ confidence on valuation multiple will improve. Deficient rainfall may impact rural consumption to some extent, but the recovery should also be fast with a lag of a few quarters."
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Sharekhan has a ‘Buy’ rating on Schaeffler India stock with a target price of Rs 3,928 per share. The brokerage remains structurally positive on the company due to its strategic focus on localization, export business and new order wins. Along with that, the company has been strategically expanding its distribution network and product portfolio to leverage its brand equity in the aftermarket.
"We believe that acquiring KRSV would further help Schaeffler India build up a strong online platform in the automotive aftermarket space. Despite headwinds in export markets in the near term, we believe its relocation strategy would continue to benefit it due to structural fit. Further, a well-diversified revenue stream geographically reduces a risk of sharp fall in case of bottlenecks in any individual destination. The company would benefit from ongoing localization, strategic expansion in export market and strong footprint in the market segment. The successful entry into system solution supply to EVs would enhance earning potential on volume ramp-up and localization," said Sharekhan in its report.
Brokerage firm JM Financial Services has a ‘Buy’ call on Nykaa stock with a target price of Rs 210 per share. According to the brokerage, Nykaa remains the go-to BPC platform with Nykaa shoppers also spending significantly higher and transacting across more number of categories.
Analysts at JM Financial noted that Nykaa has been successful in building its image as a company that provides ‘authentic’ products, which has led people to shift to the online platform for BPC products and the company being primarily responsible for this habit formation. The company is constantly striving to cater to the premiumisation trend by curating offerings across categories and price segments, along with partnering with international brands.
Motilal Oswal has a ‘buy’ rating on Bajaj Finance stock with a target price of Rs 8,800 per share. According to the brokerage, the NBFC aims to be an ‘omnipresent’ financial services company, asserting dominance across all consumer touchpoints, covering physical, app-based, web, social and virtual channels.
According to analysts at Motilal Oswal, Bajaj Finance has made significant progress in optimising its processes and making them digital-ready and has made significant structural changes to its technology stack to this effect. The approach of ‘acquire and cross-sell’ (across payments, loans, deposits, insurance and investments which derives from Bajaj Finance’s experience of an existing customer exhibiting significantly lower credit risk) would be a key growth driver in FY24 as well.
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