A few stock brokerages released research reports with ‘Buy’ ratings on four listed stocks namely Sunteck Realty, Samvardhana Motherson International (SAMIL), NRB Bearings and Blue Star. Among these stocks, Nuvama Institutional Equities has upped its target for Sunteck Realty while HDFC Securities sees healthy gains on NRB Bearings in the coming 6-9 months. Here's what brokerage said about these counters:
Nuvama Institutional Equities maintained its ‘Buy’ rating on Sunteck Realty and increased its target price on the stock to Rs 542 from Rs 483 earlier. Nuvama said investors focus may soon shift to project launches rather than project additions.
"Sunteck Realty posted healthy performance in Q4FY23, clocking Rs 540 crore in pre-sales. Collections during the quarter shot up 8% QoQ to Rs 330 crore. We expect a higher sales trajectory for Suntech with the housing cycle turning, sustained expansion of project portfolio, and release of inventory in existing projects," Nuvama said.
JM Financial has reiterated its 'buy' with a target price of Rs 100 on Samvardhana Motherson International (SAMIL) seeing it as a compelling play on global autos and margin recovery ahead. However, it highlighted global slowdown and continued inflationary pressure are the key risks.
"With the recovery in global automotive production and receding concerns on supply issues, we believe the worst is largely behind for SAMIL. Rising content per vehicle is also expected to benefit the company. SAMIL is at the end of its capex cycle and has the requisite capacity to capture medium-term growth opportunities," JM Financial said.
HDFC Securities believes investors can ‘Buy’ NRB Bearings in the band of Rs 137-140 and ‘add on dips’ towards Rs 119-122 band for the base case fair value of Rs 152 and the bull case fair value of Rs 163 over the next 2-3 quarters, thanks to demand revival, increasing exports, improving operating leverage and reduction in debt.
NRB is gearing up for the ‘next normal’ as new product lines and industry dynamics get redefined, the brokerage said. NRB is expanding its Thailand facilities on expectations of increased demand from Europe and North American regions. Expansion in Thailand and elsewhere will cost Rs 200 crore over the FY23-FY25 period, HDFC Securities said.
With the higher earnings growth, better margin profile and improved business visibility over the medium term, Reliance Securities maintained 'Buy' rating on Blue Start with a target price of Rs 1,685. It expects Blue Star to record higher earnings of 34% CAGR over FY22-FY25E, led by margin expansion.
Blue Star will focus on profitability improvement and efficient capital allocation while continuing to invest in manufacturing capacity, R&D and expansion of international footprint. The company targets to increase its market share to 15% by FY24 by repositioning itself from the premium to mass premium category with innovative products and reinforcement of marketing action in North Indian markets, Reliance Securities said.
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