LIC, TTK Prestige & Stylam Industries: YES Securities downgrades these 3 stocks to 'Add' post Q4 results

Brokerage YES Securities have assigned 'Add' ratings on shares of Life Insurance Corporation of India (LIC), TTK Prestige Ltd and Stylam Industries Ltd from earlier 'Buy' calls after these companies came out with their fourth quarter (Q4 FY25) earnings. Despite giving 'Add' ratings to these counters, the domestic broking firm expects a potential returns of up to 15 per cent.

Here's what the brokerage has to say:

1) LIC (Recommendation: ADD | CMP: Rs 871 | Target Price: Rs 1,000 | Potential Return: +15%)

LIC shares have been downgraded by YES Securities to 'ADD' following a recent upgrade, with the price target maintained at Rs 1,000. The calculated VNB (Value of New Business) margin for Q4 FY25 stood at 18.7 per cent, marking an improvement of 154 basis points (bps) year-on-year (YoY), though it declined by 61 bps on a sequential basis. YES Securities noted that this marks the second straight year of flattish full-year performance for LIC.

2) TTK Prestige (Recommendation: ADD | CMP: Rs 646 | Target Price: Rs 745 | Potential Return: +15.3%)

"We now forecast a FY25–27E revenue CAGR of 10.1 per cent, with margins likely to remain subdued over the next couple of years due to higher investment-led cost estimates. Consequently, we estimate FY25–27E EBITDA and PAT CAGR at 15.1 per cent and 25.2 per cent, respectively. We continue to value the company at 40x FY27E EPS, arriving at a target price of Rs 745. However, we downgrade our rating to ADD as margins may remain lower," the brokerage stated.

3) Stylam Industries (Recommendation: ADD | CMP: Rs 1,838 | Target Price: Rs 2,088 | Potential Return: +14.0%)

"We project Revenue, EBITDA and PAT to grow at 19 per cent, 19 per cent, and 21 per cent, respectively, over FY25–FY27E. We revise our FY27E EPS estimate downward by 5 per cent. We value the company at 20x FY27E EPS of Rs 104, arriving at a target price of Rs 2,088. Given the moderated margin outlook, we downgrade our rating to ADD from BUY," it said.