Stock Recos by Brokers 040225
BofA Securities has maintained its ‘buy’ recommendation on Reliance Industries with a target price of Rs 1,550 (+24%). Analysts feel that the launch of Chinese fast fashion major Shein through RIL’s platform is directionally positive for the company. They see upside risks to RIL’s retail revenue and EBITDA estimates on the back of the Shein launch and likely traction, helping re-accelerate retail growth. They see minimum inventory risks from Reliance Retail’s perspective.
Motilal Oswal Financial Services has a ‘neutral’ stance on IRB Infrastructure with a target price of Rs 63 (+19%). Analysts feel IRB’s executions will pick-up pace since it has a robust order book and a strong tender pipeline, primarily due to BOT projects. These could also drive a strong growth in revenue and stable margins. Factoring in higher operational revenue from private InVIT, they raised its revenue, EBITDA and net profit estimates for FY25.
Emkay Global Financial Services has a ‘buy’ recommendation on Dixon Technologies with a target price of Rs 21,000 (+45%). Analysts met the company’s top management and feels that despite its foray into the semiconductor space, it is expected to retail its capital efficiency. The company’s fabrication project to deepen the moat and it would sustain its capital efficiency with fast payback. It’s also confident of dominating the mobile and IT hardware space with a lion’s share of industry volume.
Elara Securities retained its ‘accumulate’ rating on Jyothi Labs with a target price of Rs 450 (+8%). Analysts say that in the Oct-Dec quarter, the company showed steady volumes despite challenging market conditions, and outperformed most large FMCG peers. However, near-term growth may remain subdued due to demand challenges in urban markets. Despite this, the company’s strong positioning in the affordable segment and ongoing distribution expansion are expected to drive sustained volume growth ahead of industry peers in the long term.
Incred Equities maintained its ‘hold’ recommendation on Sun Pharmaceutical Industries with a lower target price of Rs 1,900 (+9%) from Rs 2,000 earlier. Analysts are positive on the specialty portfolio and Sun Pharma’s margin in the medium term, they feel FY25F can be a moderate year for earnings, given the ongoing investments. The upside risk to the stock is a faster-than expected ramp-up in the specialty portfolio while the downside risk is a slowdown in the specialty portfolio.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.