We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Nomura on Fortis Healthcare: Buy| Target Rs 475
Nomura maintained a buy rating on Fortis Healthcare but raised the target to Rs 475 from Rs 388 earlier.
There are adequate levers in place to deliver margin expansion. The global investment bank sees the hospital segment’s EBITDA margin to improve to 20.2% in FY25 from 16.9% in FY23.
Nomura sees improvement in ARPOB growth expectations over the medium term. Valuations have improved, which is in line with sector re-rating, but still cheaper than peers.
ICICI Securities on Cello World: Buy| Target Rs 920
ICICI Securities initiated a buy on Cello World with a target of Rs 920. It is a unique consumption play and has a strong competitive advantage.
Industry growth is likely at 10%+ CAGR in FY23-27. The company has a multi-pronged strategy – distribution expansion, steady launches of differentiated products.
Drive export growth with the China+1 strategy. Also, see margin tailwinds in the near term with a correction in crude oil prices.
Morgan Stanley on OMCs: HPCL, BPCL and IOC
Morgan Stanley has a positive view on OMCs and the brokerage firm prefers HPCL, BPCL and IOC.
India’s auto fuel prices are benchmarked to $90/bbl oil. Fuel retailer integrated margins are 2-2.5x above mid-cycle.
The investment case for OMCs is about higher refining margins, hardware upgrades, balance sheet debt de-leveraging, our integration into petrochemicals, and also improved FCF.
Emkay on Emami: Positive| Target Rs 625
Emkay has a positive view on Emami with a target price of Rs 625. Emami’s ~13% up-move last week is largely a factor of attractive valuations.
“We maintain our positive stance on the stock, with TP of Rs625/share on 31x P/E (in line with its last 10-year average forward P/E), on the back of enhancement in execution, which though continues to be affected by weak seasonality,” said the note.
The management guidance of mid-to-high single-digit growth across segments in India over the medium term looks achievable. Given Emami’s healthy margin profile, we foresee positive movements in the topline trajectory.
“We remain hopeful of better seasonality ahead, wherein recovery in Rural makes Emami a strong play. Q3FY24 delivery is likely to be muted, given weak seasonality and a sustained slowdown in Rural demand,” said the note.
Any weakness in the stock from poor near-term delivery would be an ‘entry’ opportunity.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)