Designed by: Mohsin Shaikh
Produced by: Harshita Tyagi
Stock brokerages have come out with research reports on select stocks namely Asian Paints, Indian Hotels, Vardhman Textiles and Gujarat Gas. All the stocks majorly have a positive view on them from the brokerages. Here's what brokerages said about these counters
Axis Securities has a ‘Buy’ rating on Asian Paints stock with a target price of Rs 3,450. The brokerage remains positive on Asian Paint’s long-term outlook as it has ‘all the right ingredients to perform well than its peers moving ahead’
According to Axis Securities, fall in raw material prices is a big positive for the stock that will drive margin expansion going ahead. Also, the company launching differentiated next-gen nano-technology-based emulsions and waterproofing products steps in the right direction to achieve the next leg of growth and protect market share in the long run
ICICI Securities has a ‘buy’ call on Gujarat State Petronet with a target price of Rs 289.0. As per the brokerage, the company’s earnings have bottomed out, and it has brighter prospects ahead. The recent moderation in spot LNG prices and higher domestic supply, coupled with positive read-through from the tariff amendments announced recently will help earnings growth steadily recover over the next 2 years
“We continue to expect stronger volume growth over FY24E driven by i) sharp moderation in average gas prices for India; ii) growing CGD and industrial demand; and iii) transnational pipeline demand,” said ICICI Sec on Gujarat Gas stock
Motilal Oswal has a ‘buy’ rating on Indian Hotel Co stock with a target price of Rs 420. According to the brokerage firm, multiple revenue growth drivers are in place for IHCL such as strong domestic consumption story, favourable demand-supply dynamics and rapid increase in hotels through asset-light model
According to Motilal Oswal, IHCL’s margins are likely to sustain at current levels (33%) due to higher contributions from margin-accretive businesses, improved productivity and operating leverage in existing hotels
Emkay Global has a ‘Buy’ rating on the stock with a target price of Rs 440. The brokerage has assumed a 15.8%/19% margin for FY24E/FY25E vs 13.1% margin in FY23E. Over the long term, Vardhman has had an average margin of 16-20%
Emkay Global believes that strong spinning utilisation (industry at 90%) and improvement in the home textile market demonstrate that demand is increasing, but not as per previous levels. Over the medium term, they expect better demand and a lower price differential between domestic and international cotton to ensure better margins for Vardhman Textiles
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