Stocks to buy or sell: MGL, Surya Roshni, Bharat Forge, The Phoenix Mills

Produced by: Pawan Kumar Nahar
Designed by: Mohsin

Stock brokerages recently came out with research reports on select stocks namely Surya Roshni, Bharat Forge, The Phoenix Mills and Mahanagar Gas. Shares such as Surya Roshni, The Phoenix Mills and Mahanagar Gas have received 'Buy' recommendations, while shares of Bharat Forge have been downgraded to 'Sell' rating by Kotak Institutional Equities. Analyst targets on select stocks suggest up to 30 per cent potential upside over the next 12 months

Stocks to buy or sell

Brokerage firm Anadn Rathi has initiated coverage on Surya Roshni with a 'Buy' rating and a target price of Rs 860 apiece, suggesting an upside 18 per cent. It expects Surya Roshni's EPS to grow 27% CAGR over FY22-24E and sees return on equity for Surya Roshni to improve to 15% in FY24

Anand Rathi on Surya Roshni

Despite Covid-19 pandemic, the company’s Ebitda margin remains intact at 7% ,which reflects operational efficiency and pricing power. Surya is the largest GI pipe manufacturer in India and the second largest player in lighting with a robust track record, said Anand Rathi

Ebitda margins intact

Mahanagar Gas remains Nuvama Institutional Equities’ preferred pick, given its recent acquisition of UEPL  and potential volume recovery. The brokerage has increased Mahanagar Gas’ FY24E and FY25E Ebitda estimates by 4% each on strong growth outlook. It has revised its target price on the stock to Rs 1,176 from Rs 1,135 earlier

Nuvama on Mahanagar Gas

"It has cut CNG and PNG prices by 9% each following a downward revision in APM gas price. We argue MGL shall re-rate as its valuation of 11x FY24E PER is nearly one–third lower than IGL’s (15x FY24E PER) as it was perceived as a company unwilling to expand to newer geographies," said Nuvama

Re-rating candidate

Kotak Institutional Equities has downgraded Bharat Forge to 'Sell' with a fair value of Rs 660, suggesting a drop of 13 per cent, as the brokerage expects a moderate revenue growth over FY2023-35E, said Kotak Institutional Equities

Kotak on Bharat Forge

"Though newer businesses will be key growth drivers for the company, we see limited growth prospects in its core segments, given the risk of electrification and elevated competitive intensity from domestic companies. A decline in Class 8 order inflow and moderation in domestic auto demand remain near-term headwinds for Bharat Forge," Kotak said

Limited growth prospects

ICICI Securities has maintained its 'buy' call on The Phoenix Mills with a revised target price of Rs 1,645, suggesting an upside of 30%. It targets factors in the new Surat mall/Kolkata residential project and retain our 20% premium to March 23E NAV

ICICI Securities on The
Phoenix Mills

ICICI Securities said The Phoenix Mills’ like-to-like (LTL) consumption across malls stands at 111% of March 2019 levels. It is expecting FY23E rental income of Rs 13,400 crore. With Pune (Wakad) and Bengaluru (Hebbal) opening in H1FY24, it expects 17% rental income CAGR over FY20-25E

Strong rental income likely

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

Disclaimer