Domestic brokerages have come out with research reports on select stocks namely Star Health and Allied Insurance Company, Surya Roshni, Shriram Finance and Syngene International. Star Health and Surya Roshni have received 'Buy' ratings, Shriram Finance has received a 'Hold' from Prabhudas Lilladher while Syngene International continues received a 'Sell' tag from YES Securities. Here's what brokerages said about these counters
HDFC Securities has maintained its ‘Buy’ rating on Star Health and Allied Insurance with a target price of Rs 795 on the stock, suggesting an upside of 35%. The brokerage believes that growth will drive a rerating on the counter.
"We expect Star Health to deliver a rebound in growth and stable loss ratios, supported by a price hike in its flagship product and tighter underwriting and claims review process. As the largest standalone health insurer, our thesis on Star Health is anchored in a very strong distribution network, retail-dominated business mix and best-in-class opex ratios," HDFC Securities said.
Anand Rathi Shares and Stock Brokers has given Surya Roshni a ‘Buy’ rating with a target price of Rs 941 on the stock, citing healthy growth prospects and operational efficiency. It is positive on Surya Roshni's improving profitability and balancing of the product mix despite adverse market conditions.
"Its strong order backlog, favorable revenue mix, and lean balance sheet provides cushion for any uncertain macro headwinds. Being a second largest player in GI pipes and third largest player in lighting and consumer segment, company gets an advantage for bagging orders over its unorganized player," Anand Rathi said, which sees an 18% upside in the stock
YES Securities has cut its FY24/25 estimates for Syngene International by up to 15%, trimming margin estimates, as the operating leverage is still unlikely in the current fiscal. The brokerage continued to have a 'Sell' rating on the stock, even as it has revised its target price on the counter to Rs 560 from Rs 520 earlier.
"Syngene continues to invest in biologics capacity with additional $40-45 million investment out of $70mn FY24 capex going into the vertical. However, given that manufacturing share is likely to increase, reckon margins may not follow up in the immediate term which makes us cautious in the near term," YES Securities added.
Prabhudas Lilladher has revised its rating on Shriram Finance to 'Hold' from 'Buy' but said its target remains unchanged on the stock at Rs 1,486. The stock has had a strong rally and the results were miss on PL estimates The brokerage believes that rerating can happen if Shriram Finance can keep credit costs under check, while retaining growth momentum in loan book.
"Shriram Finance reported good AUM growth in Q4, led by robust growth in personal/MSME loans. The company missed our estimates on profitability and PAT came in at Rs 1,308 crore on account of one-time provision of Rs 295 crore and Rs 300 crore additional opex due to amortisation of intangibles," Prabhudas Lilladher said.
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