Stock brokerages have come out with research reports on select stocks namely Supreme Industries, Bharat Electronics (BEL), Apcotex Industries and Vedant Fashions (VFL). While Supreme, BEL and VFS have seen 'buy' ratings with revised target prices, while Apcotex has been downgraded to 'sell' by Axis Securities. Here's what brokerages said about these counters
Sharekhan has retained a 'buy' on Supreme Industries (SIL) with a revised target price of Rs of Rs 3,200, increasing valuation multiple considering a strong earnings growth outlook. It reported better-than-expected volumes and a strong beat on OPMs aided by inventory gain for Q4FY2023
"The management expects plastic products volume growth of 15% YoY while being ultra conservative for OPM guidance of 13.5-14%for FY24. We expect Q1FY2024 to witness volume growth YoY led by sustained strong demand. It targets to increase overall capacity to 9.5 lakh tonnes by FY2024 from 8 lakh in FY2023 with a capex commitment of Rs 750 crore," Sharekhan said
Reliance Securities has a 'buy' rating on Bharat Electronics (BEL) with a target price of Rs 115. The debt-free balance sheet, efficient working capital management, adequate R&D spend, technology adoption, track record of timely execution of large projects, strong cash flow and prudent capital allocation augurs well for Bharat Electronics, it said
BEL is the key beneficiary of the government’s 'Atmanirbhar Bharat' and 'Make in India' initiatives which are committed to defence modernization and indigenization. Going ahead, this is likely to benefit the companies like BEL. BEL is well-placed to leverage its expertise in growing defense capex led by strong execution track record; preferred vendor for the orders; addition of innovative products; collaboration with foreign partners; and strong focus on R&D
Nuvama Institutional Equities has maintained its buy rating on Vedant Fashions but has revised its target price to Rs 1,462 from Rs 1,360 earlier. It has increased its FY25E EPS by 1%, factoring in improved working capital and improvement in RoCE profile but has cited market share loss given competition as the key risk
Vedant Fashions reported a stable showing, clocking 15% revenue growth. SSSG came in at 14%, benefitting from the shift in the wedding season that had an impact in Q3FY23. Store addition picked up pace. Another highlight was the moderation in its working capital, especially on reported debtors
Axis Securities has downgraded the stock to 'sell' from 'hold' with a target price of Rs 440 on the stock. as it continues to have a negative outlook on the business in the short term. The stock price has seen a major 37% rally lately from its 2-month low which limits any gains and in fact, poses a potential downside of 12%, it said
"We maintain a negative outlook on the stock and revise the company’s FY24/25E EBITDA estimates to factor in a slightly slower ramp-up in the new plant's capacity utilisation levels and lower realisation from weakened nitrile latex demand, higher inventory cost, and import pricing pressure on NBR," said Axis Securities
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