We’ve got collated an inventory of suggestions from prime brokerage corporations from ETNow and different sources:
Morgan Stanley on Varun Drinks: Chubby| Goal Rs 1701
Morgan Stanley initiated protection on Varun Drinks with an obese score and a goal worth of Rs 1701.
The corporate has a stable monitor document of scaling home and international alternatives in addition to sturdy profitability.
Varun Drinks will proceed to outpace F&B trade development. Additionally, it suits in properly with our desire for mass discretionary names in 2024, mentioned the notice.
Over the subsequent 3 years, Morgan Stanley expects 19% income CAGR and 23.7% EBITDA margins development.The inventory seems to be higher positioned than friends, as it’s buying and selling at 57x 2025 EPS estimate. Varun Drinks is now most well-liked decide in staples.
Morgan Stanley on Apollo Tyres: Equal Weight| Goal Rs 475
Morgan Stanley maintained an Equal Weight score on Apollo Tyres with a goal worth of Rs 475. The worldwide funding financial institution is of the view that the share worth will fall relative to the nation index over the subsequent 30 days.
Business worth competitors is rising as we now have seen worth cuts by a number of gamers. This, coupled with rising commodity costs might result in margin stress.
The 12-month ahead P/E of 17x seems to be costly to us contemplating above components.
Jefferies on IDFC First: Purchase| Goal Rs 100
Jefferies maintained a purchase score on IDFC First with a goal worth of Rs 100. The deposit franchise is properly appreciated and margin enlargement will probably be a optimistic.
Price tendencies have dissatisfied however there are a number of levers for enchancment. Credit score high quality is topical, however going ahead deeper insights could assist.
Capital wants are imminent & an increase in return on fairness (ROE) is essential.
JPMorgan on HDFC AMC: Chubby| Goal Rs 4450
JPMorgan upgraded HDFC AMC to obese from impartial earlier and in addition raised the goal worth to Rs 4450 from Rs 3500 earlier.
The market share has improved, led by higher efficiency. The advantages of a merger nonetheless to circulation by way of.
Core EBIT margin anticipated to carry regular regardless of higher combine. Regulatory overhang appears to have abated.
(Disclaimer: Suggestions, recommendations, views, and opinions given by consultants are their very own. These don’t signify the views of the Financial Instances)
