Stock brokerages such as Prabhudas Lilladher, Nuvama Institutional Equities, Motilal Oswal, Phillip Capital have come out with research reports on select stocks namely Titan Company, Reliance Industries (RIL), Tata Motors, Bharat Electronics (BEL). Here's what brokerages said about these counters.
Domestic brokerage Prabhudas Lilladher has a 'Accumulate' call on Titan stock with a target of Rs 3,242 per share. While the brokerage remains confident of steady growth in jewellery and watches, it believes that emerging businesses of Titan Eye+, Wearables, Caratlane, and Taneira will provide the icing on the cake.
According to analysts at Prabhudas Lilladher, Titan has cracked the Eyecare model with a five-pronged strategy that includes retail expansion; in-house manufacturing of both frames & lenses; superior customer experience; product innovation; and cutting-edge communication. "While jewellery will be a play on volumes, eyecare offers the maximum scope of margin improvement in coming years," they said.
Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on Reliance Industries (RIL) shares with a target price of Rs 3,205 apiece. The brokerage expects greater than $10/bbl in GRMs greatly benefitting RIL’s O2C (refining business). “RIL’s venture in new energy shall unleash the next leg of growth and potentially re-rate its valuation, besides aiding its conventional business,” it said.
“Waaree Energies’ latest fundraising suggests a valuation of Rs 13,000 crore for its existing 9GW and upcoming 3GW module manufacturing capacity. In our view, market shall ascribe a relatively high valuation to RIL given its fully backward integrated 20GW module capacity. We value RIL’s modules business at USD6bn based on FY25E EV/sales of 2.5x,” said Nuvama in its report.
Domestic brokerage Motilal Oswal has a ‘Buy’ rating on Tata Motors shares with a target price of Rs 700. The brokerage believes that Tata Motors will benefit from ease in supply-side issues, CV upcycle, stable growth in PVs, company-specific volume/margin drivers, and sharp expansion in FCF.
“Tata Motors should witness a healthy recovery as supply-side issues ease (for JLR) and commodity headwinds stabilize (for the India business),” the brokerage said, adding that Tata Motors has received SEBI approval for Tata Technologies IPO where it holds 74.4% stake, which could unlock value for Tata Motors shareholders.
Phillip Capital has a ‘buy’ rating on Bharat Electronics (BEL) stock with a target price of Rs 158 per share. According to the brokerage, BEL has a strong moat in the highly specialized defence electronics segment, with a market share of around 60%, backed by its ability to execute large defence contracts
BEL has significantly expanded its offering beyond defence in a timely manner. "We believe Bharat Electronics’ virtuous cycle of growth will be based on two factors – order visibility and swift execution," said analysts at Phillip Capital, adding that they expect revenue, EBITDA, and PAT CAGR at 15%, 16%, and 18% respectively over FY23-26.
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