Hot Stocks: Brokerage view on Nykaa, RIL, Delhivery, Hindalco and Tata Motors

Brokerage firm Goldman Sachs remained neutral on Nykaa, Macquarie maintained a neutral rating on Reliance Industries, Jefferies has a buy rating on Delhivery, CLSA maintained a buy rating on Hindalco, and UBS resumed a sell rating on Tata Motors.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Goldman Sachs on Nykaa: Neutral | Target Rs 175
Goldman Sachs maintained a neutral rating on Nykaa with a target of Rs 175. “The trade-off continues between growth and profitability,” it said.

“The company reported a strong quarter in its BPC segment (Beauty & Personal Care), but the fashion growth segment has been decelerating,” it added.

The global investment bank is of the view that it is likely to be difficult for Nykaa to maintain elevated growth and drive higher profitability in the fashion segment.

Macquarie on RIL: Neutral | Target Rs 2100
Macquarie maintained a neutral rating on Reliance Industries (RIL) with a target price of Rs 2,100. “Jio earnings growth and Return on Invested Capital (ROIC) will lag Airtel India,” it said.“Jio to see leading subscriber growth. Tariff and ROIC outlook positively skewed in all Vodafone-Idea scenarios,” it added.

Jefferies on Delhivery: Buy| Target Rs 570
Jefferies maintained a buy rating on Delhivery with a target price of Rs 570. “The management’s focus is on scaling and being India’s lowest-cost logistics provider,” it said.

The brokerage expects medium-term e-commerce growth will be at least 15-20%. B2B express turn-around efforts are paying off.

“The current market price factors less than 10% express parcel growth in the next 3-5 years. B2B growth prospects, operating leverage, and low e-commerce penetration are underestimated,” it added.

CLSA on Hindalco: Buy| Target Rs 550
CLSA maintained a buy rating on Hindalco with a target price of Rs 550. “India profitability is ahead of estimate and debt declined as well,” it said.

“The guidance looks conservative, and the leverage is likely to remain low,” it added.

UBS on Tata Motors: Resume Sell| Target Rs 450
UBS resumed its sell rating on Tata Motors with a target price of Rs 450. “Stock pricing in all positives but ignoring structural headwinds,” it said.

“Market underestimating the EV risks relating to Jaguar Land Rover,” it added. The global investment bank expects PV market share to peak as its launch, and the pipeline is much weaker.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)

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