We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Citigroup on Tata Consumer: Buy | Target Rs 1,020
Citigroup initiated a buy rating on Tata Consumer with a buy rating and a target price of Rs 1,020. The company is gaining traction across segments.
Financial performance is likely to improve further. The global investment bank expects a consolidated revenue/EBITDA/EPS CAGR of 12%/17%/22% over FY23-26.
Rich valuations are warranted, given the company’s long-term business prospects, brand strength, and improving financial metrics.
CLSA on Eicher Motors: Buy | Target Rs 4,266
CLSA maintained a buy rating on Eicher Motors with a target price of Rs 4,266. The share of the 250cc motorcycle segment is going up in the premium motorcycle segment.
The global investment bank believes that making money at RE (Royal Enfield) price point is quite difficult at this point.The pricing of Triumph and Harley launches is keenly watched. If the brands are positioned at a significant premium, the volumes will be very small.
Macquarie on Asian Paints: Outperform | Target Rs 3,800
Macquarie maintained an outperform on Asian Paints with a target price of Rs 3,800. The focus is on distribution expansion/capacity additions to fortify leadership positions.
The normalisation of the Ebitda margin and working capital intensity should drive a 300 bps expansion in ROCE to 28% in FY24. The impact of Grasim is expected to be limited.
Kotak Institutional Equities on Dr Reddy’s: Reduce | Target Rs 4,800
Kotak Institutional Equities maintained a reduce rating on Dr Reddy’s Laboratories with a target price of Rs 4,800.
“We recently met DRRD’s CFO, Global Head of Biologics, and visited Dr Reddy’s flagship biologics facility at Bachupally,” said the note.
After sluggish progress over the past two decades, the company is guiding for a significant increase in biosimilars sales (from 2-3% currently) and EBITDA contribution in the coming years.
For the US generics business, increased pricing stability augurs well. Nevertheless, at current valuations, we believe the healthy non-US outlook is factored in.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)