Stock brokerages have come out with research reports on select stocks namely Britannia Industries, ABB, Ashok Leyland and ITC. All the stocks have a positive rating. Here's what brokerages said about these counters.
Analysts at Sharekhan maintained a ‘buy’ rating on the stock with a revised target price of Rs 5,500. They believe that with sustained market share gains, product launches, and higher traction on new channels, Britannia’s core biscuit category will beat the industry’s growth in the medium term.
“The company is going big with the dairy segment, making strong investments on product launches. This along with scale-up in revenue of the adjacent categories and efficiencies would help Britannia achieve double-digit earnings growth of 17% over FY2023-FY2025E,” Sharekhan said in its report.
Motilal Oswal has a ‘buy’ call on Ashok Leyland stock with a target price of Rs 175 as it believes that AL is on strong footing (lean cost structure & reasonable debt) and is the best play on CV cycle revival, along with market share recovery and expansion of revenue/ profit pools.
According to analysts at Motilal Oswal, Ashok Leyland’s order pipeline is robust for the EV segment. Also, the stable demand environment and improving pricing power should boost earnings.
Brokerage firm Prabhudas Lilladher remains positive on ABB given its diversified business model, focus on high growth segments, strong order pipeline, and organic/inorganic growth. It maintains an ‘Accumulate’ rating on the stock with a target price of Rs 4,119, given a strong outlook.
According to PL analysts, ABB’s order inflow will continue its momentum for short-cycle order from tier 2/3/4 cities with customers focusing on quality products. “Enquiry pipeline stands strong from high growth areas such as data centre, renewables, electronics etc,” they said.
Motilal Oswal has assigned a ‘buy’ tag to ITC stock with a target price of Rs 450 as it expects healthy cigarette volume growth to sustain in the near term, leading to the best three-year and four-year average volume growth for over a decade.
ITC’s hotel business prospects are likely to be buoyant going forward, the brokerage noted. “We are positive on ITC as a result of better earnings visibility over peers in the next few quarters, inexpensive valuations; and attractive dividend yield,” it said.
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