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We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Nuvama on Hindalco: Hold| Target Rs 508
Nuvama recommended a Hold rating on Hindalco with a target price of Rs 508. Monetisation of Novelis on the cards. Novelis-derived market cap is $9.6 bn (Rs 361/share of Hindalco).
The usage of money that would be received post-share sale is unclear. Proceeds can either be used to grow inorganically or pay one-time dividend/capital repatriation to Hindalco.
The event does not provide any case for a re-rating. The process would take at least six months if everything goes smoothly.
The listing of shares may attract a holding company discount too in the future. The event can be sentimentally positive.
Sharekhan on Schaeffler India: Buy| Target Rs 3510
Sharekhan recommended a buy rating on Schaeffler India with a target price of Rs 3,510. The company reported a net profit of Rs 222 crore in Q4CY24 against our estimate of Rs 236 crore.Despite the near-term weakness in the overseas market, it maintained its Rs 1,500 cr capex guidance over CY23-25.
“We retain our Buy rating on the stock with a revised PT of Rs 3,510 in anticipation of sustenance in domestic demand, success in high-value EV business, increase in localisation, inorganic growth opportunity, and expectation of improvement in the aftermarket segment,” said the note.
Jefferies on Biocon: Underperform| Target Rs 250
Jefferies downgraded Biocon to underperform from hold earlier with a target price of Rs 250.
“We are 17-19% below consensus for FY25-26 and believe earnings downgrades will continue due to lack of new launches in the biosimilars segment and a weak FY25 outlook for Syngene due to lack of major manufacturing contract wins,” said the note.
With weak FCF generation, high leverage will hurt Biocon unless it looks at fundraising options, like stake sale in biosimilars and Syngene.
Elara Capital on Zomato: Accumulate| Target Rs 165
Elara Capital maintained an accumulate rating on Zomato with a target price of Rs 165. “We value the food delivery business at 50x one-year forward EV/EBITDA, Blinkit at 6x one-year forward EV/sales, and 2.5x to Hyperpure,” said the note.
The US-based food ordering & delivery platform DoorDash reported 27% YoY revenue growth to USD 2.3bn in Q4CY23 whereas Zomato food delivery adjusted revenue grew 29.4% YoY to INR 20.3bn in Q4CY23, higher than DASH.
DASH is set to invest aggressively in CY24, especially in new verticals, such as grocery, and global markets.
(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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