Stock brokerages have come out with research reports on select stocks namely PI Industries, Finolex Industries, Anupam Rasayan India, and Home First Finance Company. While Finolex and Home First have a 'buy' rating on them, Anupam Rasayan has been downgraded to 'hold' by JM Financial, and PI Industries has been given an 'add' rating by Kotak. Here's what brokerages said about these counters.
Kotak Institutional Equities has retained its 'add' rating on PI Industries, with a fair value of Rs 3,690, citing credible assets acquired at reasonable valuations. It would look for corrections and evidence of further traction with new products and businesses to turn more constructive.
"We consider PI’s twin acquisitions to expand into the pharma industry an incremental positive: not only do they finally mark a meaningful step forward on the M&A front after a 3-year wait, but they also bring into PI’s fold two credible assets at reasonable valuations, tempering fears that likely crept in after the failed acquisition attempts of the past," said Kotak.
JM Financial has upgraded its estimates for Anupam Rasayan India but has downgraded it to hold with a revised target price of Rs 1,080 on the back of expensive valuations. However, it had a target price of Rs 985 on the stock earlier.
Anupam Rasayan’s 4QFY23 consolidated EBITDA was below consensus primarily on account of a lower-than-anticipated gross margin. However, PAT was 10% ahead of expectations due to higher-than-expected other income. Going forward, the company is likely to incur a capex of Rs 600 crore, which should cater to the recently announced LOIs worth Rs 2,860 crore, JM Financial said.
Investec views Home First Finance as the most scalable affordable housing finance company given its centralised underwriting model. It has upgraded its target price to Rs 1,050 with a buy rating citing ability to gain market share in the competitive top-50 cities with good asset quality and profitability indicates its superior model.
Home First has navigated the rising interest rate environment well with a marginal impact on its spreads and clocked improvements in RoA/RoE. It continues to invest in scaling its distribution with branch expansion. This provides high visibility on loan growth over the next three years. It is doubling its presence from 80 branches in March 2022 to 160 in March 2025, Investec said.
Considering the leading position in the Agri-pipe segment and backward integration for the PVC Resin business, sustained cash flow, and high dividend pay-out of 35%, Reliance Securities has a 'buy' rating on the stock, with a target price of Rs 200.
"The government’s thrust on Jal Jeevan Mission, enhancement of agricultural credit, and increased allocation for rural infra development fund augur well for the domestic PVC pipe manufacturers. Finolex is expected to sustain growth momentum and gain market share from the unorganised players in the plumbing pipe segment on the back of backward integration," said Reliance.
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