Stock brokerages recently come out with research reports on select stocks namely ICICI Lombard General Insurance (ICICI Lombard), Apollo Tyres, Just Dial and Angel One. While Apollo Tyres and Angel One have received ‘Buy’ rating with an upside potential of up to 40%, ICICI Lombard received a ‘Hold’ rating by Nuvama Institutional Equities. Here's what select brokerages said about these counters.
Reliance Securities has a 'Buy' call on Apollo Tyres with a target price of Rs 380. The brokerage cited strong volume growth, healthy export potential, regular price hikes, structural positives in European operations and comfortable valuation among reasons to go bullish on the tyre stock.
Reliance Securities expects replacement demand to revive strongly. Ease in semiconductor supply would lead to healthy OEM sales in FY24, it said while expecting a double-digit growth in FY24, on account of the new capacity, healthy OEM demand, revival in replacement demand, and better traction in exports in FY24.
ICICI Securities maintained ‘Buy’ rating on Just Dial, but upped its price target on the stock to Rs 870 from Rs 750 earlier. It finds valuations attractive after a 25 per cent correction in the last year due to concerns regarding growth prospects and fears that the parent may delist the entity.
In addition to a strong performance in Q4FY23, The Just Dial management has given clarity on the company’s new businesses, which the brokerage thinks should shore up investor confidence. The JD Xperts business pilot phase seems to be coming to a conclusion with material improvement in key operating metrics and the business is gearing up for its commercial launch, said ICICI Securities.
Nuvama Institutional Equities maintained 'Hold' rating on ICICI Lombard with a target price of Rs 1,200, as it believes the management is setting itself an aggressive target of CORs at 102 %and RoE of 18% by FY25E but cut its estimates.
"Due to one-off transactions, ICICI Lombard posted just 1.9% YoY growth in NWP; NEP growth was stronger at 14.5% YoY. While industry growth in motors has improved, heightened competitive intensity may persist, especially in the absence of commission caps beginning FY24. Reinvestment of synergy benefits is weighing on the business’s interim RoE profile," said Nuvama.
Motilal Oswal Financial Services reiterated its 'Buy' rating on Angel One stock, with a revised target price of Rs 1,800 after a strong performance in the March quarter. It sees Angel One as a perfect play on the financialisation of savings and digitisation.
Angel One demonstrated a strong operating performance, even during challenging market conditions. The management continues to invest in technology to strengthen its position, Motilal Oswal Securities said as it raised its FY24/FY25 earnings estimates by 6.1%/7.0% to factor in higher revenue.
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