Stock brokerages namely KR Choksey, Phillip Capital, Religare Broking and YES Securities have come out with research reports on select stocks namely Kotak Mahindra Bank, TVS Motors Company, Havells India, and Emudhra. Here's what brokerages said about these counters
Phillip Capitals believes higher multiples for TVS reflect its high earnings growth and its values the stock at Rs 1,286, with a buy call. TVS Motors continues to deliver on its target of double-digit EBITDA margins despite higher commodity prices and supply chain issues on the back of favourable product mix, cost savings and timely price hikes, it said.
"We expect TVS to outperform the industry on the back of premium segment and urban markets doing well; better product and segment mix 3Ws grow and exports recover; improving operating structure with cost savings; and sharp EPS growth. We feel the EV adoption pace could get impacted if there is any adverse change in the FAME 2 subsidy, as that would impact future investment plans and formation of separate subsidiaries," Phillip Capital said.
KR Choksey expects the premium valuation for Kotak Mahindra Bank to continue with a strong brand equity, positive outlook, and consistent performance from a business perspective. It maintained its buy rating on the lender with a target price of Rs 2,330.
Kotak Bank reported strong earnings growth, primarily led by robust growth in NII, lower expenses, and improved asset quality which led to lower provisions and further strengthening of the balance sheet. The credit offtake for the bank remained healthy in line with the industry trend, with an improvement in the deposit growth led by a focus on the granular retail segment, KR Choksey said.
Religare Broking believes that demand is expected to be tepid due to inflationary pressure and lack of price hikes in the near term but remains positive on Havells India and maintains a 'buy' rating with a target price of Rs 1,466 on the stock.
Havells has a strong presence in the organized markets across switchgears, cables, lighting & fixtures, ECD, and Room AC segments. While from the long-term perspective, factors such as rising demand of the B2B segment, government spending on infrastructure and housing for all as well as premiumization backed by rising disposable income would bode well, Religare said.
Yes Securities has a 'buy' rating on Emudhra with a target price of Rs 437 as the company reported mixed financial performance for the quarter. The sequential revenue growth for the quarter was above estimates; while EBITDA margin was slightly below expectation.
"The demand environment remains strong led by rising digitalization across sectors. We expect the Enterprise segment to grow faster than trust services, driving the overall growth of the company. Its strong portfolio of enterprise solutions and deep relationships with system integrators should help to drive the Enterprise business. The EBITDA margin is expected to improve," it said.
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.