Stock brokerages have recently come out with research reports on select stocks namely PVR, InterGlobe Aviation (IndiGo), AU Small Finance Bank and Crompton Greaves Consumer Electricals (CG Consumer). All of these stocks have a 'Buy' rating from the respective brokerages, suggesting up to 45 per cent potential upside over the next 12 months
PVR-INOX has borrowed a leaf from FMCG companies for driving consumption via sampling. It has launched a unique 30-minute trailer screening show priced at just Re 1. We reckon this would have hardly any incremental costs and no adverse impact during peak demand, said Nuvama Institutional Equities while assigning a 'Buy' rating with a target price of Rs 2,125
"The innovation is interesting and would help address low footfalls, particularly witnessed in the case of Hindi movies. We expect this innovation to have a positive impact on footfalls. The initial response to this strategy has been encouraging. The show will be screened across the company’s major cinemas at prime-time slots twice a day," the brokerage noted
Kotak Institutional Equities said that airlines have followed the replicable and value-destructive load maximization strategy for a long time. Improving consumer spending behavior in post-Covid times is making IndiGo shift towards the revenue maximisation strategy
"IndiGo’s nearest peer in the Tata group will take a long before it has sufficient capacities to create a comparable domestic network. The Tata group may be better placed to focus on international (rather than domestic) once its ordered capacities fructify," Kotak said while maintaining a 'Buy' call. The brokerage raised IndiGo's fair value to Rs 2,725 from Rs 2,550 earlier
"Crompton’s product portfolio in appliances will widen further. Healthy growth led by strong brand equity, product innovation, ongoing go-to-market strategy, better margin profile in the medium-term," said Reliance Securities. The brokerage has a 'Buy' rating on the stock with a target price of Rs 430, suggesting an upside of 45%
"In the near-term, Crompton is well-placed against any future uncertainty in terms of sudden demand due to production ramp-up and investments being made for the long-term development of the business. The company will continue to focus on improving the cost structure with scale," Reliance Securities said
"We expect this extension to ensure top management continuity. Besides, it improves visibility on the continuation of its growth journey like in the past – scale with robust asset quality and profitability," said ICICI Securities while upgrading the stock to 'Buy' from 'Add' earlier with a revised target price of Rs 770 from Rs 700
ICICI Securities believes that the recent correction in the stock price was unwarranted and that it is well poised to deliver over 20 per cent advance growth and continue improving the RoE trajectory. As per its 4QFY23 business update, ICICI said, it delivered robust 26 per cent YoY growth in gross advances with the deposit base growing 32 per cent YoY, but CASA ratio was flat
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