Brokerage UBS updated score on Eicher Motors to Acquire while Jefferies launched insurance coverage on Syrma SGS and Kaynes Technologies. Nomura also shared its views on oil advertising business (OMCs) in the light of a Rs 2 per litre cut in petroleum and diesel prices.
We have collated a list of recommendations from leading brokerage firm companies from ETNow:
UBS on Eicher Motors: Get|Target: Rs 5,000
UBS has upgraded Eicher Motors to ‘Purchase’ from ‘Neutral’ and treked the target rate to Rs 5,000 from Rs 4,300. It anticipates Royal Enfield’s upcoming 450cc system launch to address competition and development problems.
In its view, the business is found desiring on numerous fronts including its toughness in RE’s addressable market, lacklustre action to competitors and firm’ solid customer connect.
UBS sees the start of a multi-year upgrade cycle among the existing consumers while anticipating 10% domestic quantity CAGR in FY24-26 for RE versus the market’s 6-7%.
The stock is trading at a 20% discount rate to Bajaj Car’s 1-year onward PE, it noted calling the present risk-reward engaging, especially because RE remains insulated from electrification danger.
Jefferies on Syrma SGS: Buy|Target: Rs 640
Jefferies has launched a buy on Syrma SGS for a cost target of Rs 640. The EMS business will be a beneficiary of 35%+ CAGR development in the sector assisted by China +1 strategy.
Jefferies on Kaynes Technology: Hold|Target: Rs 2,900
Jefferies launches insurance coverage on Kaynes with Hold ranking and a price target of Rs 2,900. Kaynes is the only EMS player to venture right into OSAT and PCB manufacturing – in reverse integrated, the United States broker agent claimed.
Over FY 2024-26, Kaynes uploaded EPS CAGR at 55-60%, with ROCE growth. Over FY24-26e, the Indian EMS market is readied to publish +35% CAGR, led by China +1 and lower labour price, Jefferies stated. While the business version stays particular niche, punchy valuation asks for a ‘Hold’ rating on the counter.
Nomura on OMCs
BPCL: Purchase|Target: Rs 735
The Japanese brokerage has maintained a ‘Purchase’ on the counter and hiked the target cost to Rs 735 from Rs 455.
HPCL: Buy|Target: Rs 570
Nomura has updated the sock to ‘Acquire’ from ‘Neutral’ while elevating its target price to Rs 570 from Rs 305.
IOCL: Purchase|Target: 195
IOCL has actually updated the supply to ‘Acquire’ from ‘Neutral’ and treked the target rate to Rs 195 from Rs 105.
In its sight, the overhang in OMC supplies is done and cleaned while the refining expectation continues to be healthy and balanced. In its sight, the day-to-day modifications will likely return to upload the political elections. Advertising and marketing margins are most likely to continue to be at normative levels in FY25.
B&K on Hindustan Foods: Purchase|Target: Rs 678
Broker agent B&K has actually initiated a protection on Hindustan Foods with a ‘Acquire’ and a target price of Rs 678. Calling it the biggest customer contract supplier in India, B&K said that the business has embraced organic and not natural paths to scale up. Strong tailwinds remain in place and this brokerage firm expects revenue/EBITDA/PAT to expand 23%/ 28%/ 37% over FY23-26. Despite strong development, the company is expected to see net financial debt to equity declining to 0.4 x from 1.2 x.