Stock brokerages recently came out with research reports on select stocks namely Prestige Estate Projects, Tata Motors, Tata Consumer Products and Cyient. All these stocks have received 'Buy' ratings from the individual broking firms. Here's what brokerages said about these counters
ICICI Securities has maintained its ‘Buy’ rating on Prestige Estate Projects with a target price of Rs 530 apiece. While the company’s aspirations to grow its residential and annuity business is laudable, the company’s ability to achieve significant pre-leasing in ongoing/upcoming annuity assets along with strata sales will be the key monitorable, ICICI Securities said.
With a residential launch pipeline of 65 million square feet over FY24-25E, the Prestige Estates aspires to double its annual residential sales bookings and increase rental income. The company plans to utilise 40% of its annual residential operating surplus to fund capex and expects peak net debt to rise to Rs11,000-12,000 crore by FY28E, ICICI Securities noted.
Nuvam Institutional Equities has retained its ‘Buy’ rating on Tata Consumer Products with a target price of Rs 865. That said, the brokerage sees inflation in tea in India business and coffee in international business in FY24 as key risks. Pressure on international margins shall persist, but sequential recovery is likely, it said.
"Some of the concerns around the dip in India tea volumes are getting addressed. Due to proactive steps taken by the company, we now expect 4% YoY volume growth in Q4FY23 versus a 5% dip in Q3FY23. The calling-off of the expensive Bisleri acquisition as a blessing in disguise. We expect the salt business, Sampann, NourishCo and Soulful to sustain strong growth momentum," Nuvama said.
Reliance Securities has a 'Buy' rating on Tata Motors with a target price of Rs 600, thanks to expected recovery of JLR’s global business, with likely ease on semiconductor supply in subsequent quarters and strong order book. The brokerage also sees a turnaround of PV business post restructuring of domestic business and strong domestic CV up-cycle.
"Tata Motors is the market leader in the promising CV segment, and we expect CV up-cycle to continue over next 1 year. We believe lower capex and improvement in supply of semiconductor would support JLR, Its entry into E-LCV with initial high bookings, order wins and range of new launches on EV platform over next 2 years strengthens company’s business position," it said.
IDBI Capital has maintained its ‘Buy’ rating on Cyient with a revised target price of Rs 1,265, suggesting a potential upside of 16%. Despite conservative assumptions, the brokerage has upgraded Cyient ‘s EPS estimate by 5% for FY25E, the brokerage said.
"Cyient reported strong organic growth in services revenues in Q4FY23 led by transport vertical. Going forward, the company has guided services revenue growth of 15-20% and 100-200 bps improvement in margins. We have conservatively built in revenue growth of 17% due to macro uncertainty and possible delay in revenue conversion," said IDBI Capital.
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