Stock brokerages have come out with research reports on select stocks namely Apollo Tyres, Crompton Greaves, Hindalco and Jyothy Labs. All the stocks majorly have a positive view on them from the brokerages. Here's what brokerages said about these counters.
Sharekhan has a ‘Buy’ rating on Apollo Tyres stock with a revised target price of Rs 429, in expectation of a 140 bps EBITDA margin expansion in the next two years, its dominant position in the domestic TBR segment, and focus on profitability over plain vanilla volume growth.
Sharekhan analysts remain optimistic about the company’s growth prospects, and expect it to benefit from its strategy of deleveraging its balance sheet, improving operating leverage, and focusing on firm capital allocation and cash management going forward.
B&K Securities has a ‘buy’ rating on Crompton Greaves stock with a target price of Rs 363. The brokerage believes that the company’s focus on growth and investment in brand building, innovation along with scaling up of Butterfly brand will yield strong results going forward.
"We have revised our earnings estimate downward by 4%/6% for FY24/25E, respectively, to factor in margin dip expected due to adoption of growth-focused strategy going ahead. Hence, our revised target price is Rs 363 (earlier Rs 378)," B&K Securities said.
Motilal Oswal remained confident on Hindalco’s long-term opportunities and considering its leadership in both beverage can and automotive markets, the brokerage reiterated its ‘Buy’ rating on the stock with an SoTP-based target price of Rs 500.
The brokerage noted that the Hindalco stock now fully prices in: a weak macro economy, pressure from beverage can destocking, and rising inflation reflected in higher input costs. As a result, we believe that HNDL reflects strongly on long-term opportunities rather than focusing on just one or two quarters of headwinds.
Brokerage firm Geojit Financial Services has a ‘buy’ rating on the stock with a target price of Rs 245. The brokerage expects the company to deliver a PAT growth of 21% CAGR over FY23-25E.
“Inflation is easing, and demand is expected to improve going forward given strong rural & consumption pushes by the GoI. Expanded distribution and focus on LUP strategy will support volume growth,” said Geojit analysts on Jyothy Labs stock.
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