We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
HSBC on Zomato: Buy| Target Rs 120
HSBC maintained a buy rating on Zomato but raised the target price to Rs 120 from Rs 102 earlier.
A deep dive into hyperlocal further raises our conviction on the long-term value of Blinkit, said the HSBC note.
The value for Blinkit is now at $5 billion. In the next 3-4 years, HSBC believes that Blinkit can achieve 6-7% contribution margin (CM) and 3-4% EBITDA margin.
Hyperlocal could be a much bigger business for Zomato in the long term.
CLSA on UltraTech Cements: Underperform| Target Rs 8400CLSA maintained an underperform rating on UltraTech Cements but raised the target price to Rs 8400 from Rs 7900 earlier.
The global investment bank expects the company to report industry-leading growth and profitability. The capacity expansion and focus is on renewable energy to aid growth.
Valuations are at 14x FY25 EV/EBITDA where the global investment bank sees a limited rerating potential. The recent rebound in fuel (petcoke/coal) cost should restrict earnings upgrades.
Motilal Oswal on M&M Financial: Buy| Target Rs 350
Motilal Oswal maintained a buy rating on M&M Financial with a target price of Rs 350. MMFS has translated the KPIs introduced under Mission 2025 into strategic priorities, such as expanding its presence, leveraging technology to drive operational efficiency, developing new products, and making process enhancements.
The management is committed to investing in new capabilities and advanced technological solutions to reduce volatility in the company’s operating performance.
MMFS will keep its core strong and will make sure that it does not lose the heft in vehicle lending. Strong moats in the rural/semi-urban customer segments position MMFS well to reap the rewards of the hard work that is going into evolving this franchise.
Prabhudas Lilladher on Navneet Education: Buy| Target Rs 192
Prabhudas Lilladher maintained a buy rating on Navneet Education with a target price of Rs 192.
Navneet Education: K-12 valuation witnesses a jump of 25-30%. As per the last funding round, K-12’s valuation stood at ~Rs30bn and Navneet’s 22% stake was valued at Rs6.4bn.
As per our interaction with management, a larger chunk of equity is simply changing hands and fresh infusion is minimal. This indicates Navneet’s stake would remain intact at 22% and there is no dilution.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)