Also, Elara Capital recommended a buy on L&T and HDFC Securities Institutional Research has a buy on Sai Silks (Kalamandir).
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Jefferies on BSE: Buy| Target Rs 2700
Jefferies initiated coverage on BSE Ltd with a buy with a target of Rs 2700. The stock is riding on the digitization of the Indian Capital Markets.
BSE can leverage macro tailwinds along with headway into derivatives. Derivatives are likely to make up 35% of BSE’s revenues.
Diversified revenue streams provide a long growth runway. It could drive 150% earnings jump in FY24, and double earnings over FY24-26.
The valuations are reasonable at 31x fwd P/E vs RTAs at 38x, AMC at 28x, and depositories at 48x.
Nomura on Eicher Motors: Neutral| Target Rs 3640
Nomura maintained a neutral rating on Eicher Motors with a target price of Rs 3640. The new Himalayan bike is seen as a significant upgrade.
Reviews of the bike are strong as well. With 25% higher pricing, focus is on retaining exclusivity vs large Sells.
The global investment bank estimates sales of Himalayan to improve to 4k units per month vs 3k per month.
Elara Capital on L&T: Buy| Target Rs 3750
Elara Capital maintained a buy rating on L&T with a target price of Rs 3750. L&T is on track to achieve its financial goals. Led by a robust long-term new order pipeline, both globally and domestically, growth for E&C will surely rev-up.
“We up FY25E/26E estimates 5% each as also raise target to Rs 3,750 from Rs 3,540 earlier, valuing E&C on unchanged FY26E P/E of 22x, investments in IT & Financial Services at market value and investments in PPP assets at 1x book value,” said the note.
Key risks are the impact of geopolitical crises on crude/GCC capex, focus shifting from domestic capex, and labor scarcity.
HDFC Securities on Sai Silks: Buy| Target Rs 385
HDFC Securities Institutional Research maintained a buy rating on Sai Silks with a target price of Rs 385. Sai Silks (Kalamandir) Ltd (SSKL) is one of the largest apparel retailers in south India offering products across ethnic wear (sarees) and value fashion.
SSKL has delivered ~17% revenue CAGR over FY16-23. While most of the growth is expansion-led, SSSG has hovered at 2-4% typically.
IPO proceeds (INR 5.66bn) will be utilised primarily to expand the more lucrative VML format in Tamil Nadu.
“We build in sales/EBITDA/PAT CAGRs of 19/27/40% for FY23-26E with average RoCEs of ~16% for FY23-26. Initiate coverage on SSKL with a BUY rating,” said the note.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)