Hot Stocks: Brokerage view on Maruti Suzuki, ABB India, Mamaearth and Asian Paints

Brokerage firm Macquarie has a neutral rating on Maruti Suzuki, Axis Capital downgraded ABB India to reduce, CLSA has an underperform rating on Asian Paints and Citigroup initiated a buy on Honasa Consumer (Mamaearth).

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Citigroup on Honasa Consumer: Buy| Target Rs 550

Citigroup maintained a buy rating on Honasa Consumer with a target price of Rs 550. The global brokerage firm expects growth outperformance led by company-specific initiatives.

Entry in the new sub-categories and gradual margin expansion are key long-term positives. Financial performance improving with scale.

The company presents robust growth opportunities and its portfolio of brands warrants rich multiples.

The global investment bank expects market share gains through distribution expansion and innovation.

CLSA on Asian Paints: Underperform| Target Rs 3215

CLSA maintained an underperform rating on Asian Paints with a target price of Rs 3215. The scale and agility of the Grasim Opus Paint launch would be disruptive for the sector.Pricing action by Asian Paints, other players, and changes in dealer incentives would be key to monitor.

Axis Capital on ABB India: Reduce

Axis Capital downgraded ABB India to reduce as the rally seems to be overdone and long-term investors can wait for a better entry point.

The 1-year forward P/E at ~77x has crept past the long-period mean of 70x for the first time since Covid.

Gross margins have peaked and are likely to come off in CY24. The global investment bank expects earnings growth to come down in the coming quarters.

The management commentary post Q4 was broadly a reiteration of past quarters.

Macquarie on Maruti Suzuki: Neutral| Target Rs 10,608

Macquarie maintained a neutral rating on Maruti Suzuki with a target price of Rs 10,608. The global investment bank sees a market-share loss for MSIL in the Rs 400- 700k entry-level category.

The near-term demand for small cars will remain tepid. Changing market mix to pose a challenge to MSIL’s market share.

The valuation of Maruti Suzuki stock stands at ~24.5x FY26E PE, which is in line with its long-term average. Tata Motors and TVS remain top picks (TTMT > TVS > Hero > MM)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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