Stock brokerages such as Motilal Oswal, Axis Securities, ICICI Securities and Nuvama Institutional Equities have come out with research reports on select stocks namely DMart, Varun Beverages, ACC, Jindal Steel & Power. Here's what brokerages said about these counters
Motilal Oswal has upgraded DMart parent Avenue Supermarts share to ‘buy’ with a target price of Rs 4,200 per share. According to the brokerage, DMart’s remarkable consistency in achieving industry-leading growth, margins and ROCE despite having a relatively asset-heavy model warrants rich valuations
As per analysts at Motilal Oswal, when same-store sales growth (SSSG) recovers, strong cost control could help DMART improve its margin by 30-50 bp or pass on the gains to drive higher offtake. Also, tailwinds from robust store additions and consistent cost efficiency could play a key role in SSSG recovery. “We believe SSSG improvements in FY24 should boost valuation multiples,” it said
Axis Securities has a ‘buy’ rating on Varun Beverages stock with a target price of Rs 1,860 per share. According to the brokerage, VBL is expected to perform well on account of Normalcy of operation and market share gains of newly acquired territories post COVID-19 disruptions, management’s continued focus on the efficient go-to-market execution in acquired and underpenetrated territories as reflected in its recently commissioned Bihar plant operations
Analysts at JM Financial believe that VBL may perform well on account of expansion in its distribution reach to 3.5 million outlets in CY23, focus on expanding high-margin Sting energy drink across outlets coupled with increased focus on expansion of value-added dairy, sports drink and juice segment, and robust growth in the international geographies
ICICI Securities has a ‘buy’ rating on ACC stock to ‘Buy’ with a target price of Rs 1,970. The share price of ACC has generated a breakout above the last three months falling channel with strong volume of almost three times the 200 days average volume, highlighting larger participation in the direction of trend signalling reversal of the corrective trend, and offers fresh entry opportunity
The brokerage expects the stock to head towards 1,970 levels in the coming weeks being the 80% retracement of the Feb-Mar 2023 decline (Rs 2,065-1,592). Among the oscillators, the daily stochastic is seen rebounding from the oversold territory and has generated a buy signal moving above its three periods average thus supporting positive bias
Nuvama Institutional Equities has a ‘Buy’ call on Jindal Steel and Power (JSPL) stock with a target price of Rs 737 per share. The brokerage expects JSPL to be structurally leaner in cost on the back of captive coal blocks, operating leverage amid higher volume, and improved product mix leading to margin expansion. Moreover, strong balance sheet remains despite ongoing expansion
Analysts at Nuvama expect JSPL to spell out its capital allocation policy soon with the revised capex plan, which will provide clarity on the usage of future cashflows. The near-term weakness in stock should be viewed as a buying opportunity
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