We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Spark Capital on Lupin: Buy| Target Rs 1440
Spark Capital upgraded Lupin to a buy from Add earlier and raised the target price to Rs 1440 from Rs 1350 earlier.
In the domestic business – the stability of the in-licensed portfolio and MR productivity improvement will aid margin growth.
Formulations ex-India & US underappreciated scale-up in recent years.
In the US business – multiple offsets to gSuprep, gPrezista competition gSpiriva Rx to ramp up materially from current levels.
“We expect base business margin levers to play out over FY25/FY26. EPS estimates for FY25/FY26 are 6%/10%, respectively above consensus estimates,” said the note.
Consensus margin estimates for FY25/26 ignore multiple margin levers across various businesses.
Phillip Capital on Godrej Consumer: Buy| Target Rs 1350
Phillip Capital maintained a buy rating on Godrej Consumer but raised the target price to Rs 1350 from Rs 1075 earlier.
The company is poised for sustainable double-digit growth in FY25. In the India H1 business – disruptive innovations are on their way.
The company plans to scale up fast-growing/newly incubated and acquired categories. International business margins are rising.
Morgan Stanley on Aarti Industries: Overweight| Target Rs 575
Morgan Stanley maintained an overweight rating on Aarti Industries with a target price of Rs 575. Agrochemicals make up one-third of Aarti’s revenue.
Start-up of supplies under the contract will steadily improve asset turns and be earnings accretive.
A long-term contract implies annual revenue 1h of $40 million. Assuming Aarti’s mid-cycle EBITDA margins of 18%, the contract implies 3-4% accretion to EBITDA and 6-7% accretion to earnings over F25-26.
Geojit on Bata India: Buy| Target Rs 1870
Geojit upgraded Bata India to a buy with a target price of Rs 1870. Bata India is the largest retailer and leading manufacturer of footwear in India, with 2,150 retail store presence in 725 cities (Dec 2023).
“We upgraded our rating to BUY with a target price of Rs 1,870, considering the improvement in margins,” said the note.
Revenue declined by 1.3%YoY in Q2FY24, partially impacted by the shift in the festive season and lower demand in the mass segment.
Bata India expects growth in both mass and premium segments, with the premium portfolio growing 1.5x of overall growth.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
