Brokerages from Nuvama to Emkay have Hero MotoCorp Ltd., Gujarat Gas Ltd., and other companies in the consumption sector on their radar, given the expectations of a rural turnaround and a good monsoon. Prabhudas Lilladher likes stocks whose near-term rerating looks unlikely.
NDTV Profit tracks what the brokerages are putting out on specific stocks. Here are all the top calls from the brokerages that you need to know about on Wednesday.
Emkay On Hero MotoCorp
The brokerage reiterated its 'buy' call with a target price of Rs 6,000 per share, implying a 13% upside from the previous close.
Defensive bets given the strong growth and re-rating triggers.
Two-wheeler recovery continues to broaden, with the rural segment also making a return.
Continue to expect two- to three-year growth visibility, led by the return of first-time buyers.
Positioning in the fast-growing 125cc motorcycle category has been uplifted by the recently-launched Xtreme 125R.
Has over a month of waiting per channel check despite strong competition.
Market share has improved to 17% in April 2024 versus the recent 9% low.
Nuvama On Gujarat Gas
Nuvama maintains 'buy' on Gujarat Gas with a target price of Rs 676 apiece, implying a 28% upside from the previous close.
Saudi Aramco has cut the price of propane by $35 per tonne.
Believes the current industrial PNG price is on par with propane.
GGL enjoys an additional Rs 4 per scm advantage over propane.
Believes seasonality will not impact the volume shift from propane to gas.
Expect GGL's volumes to gradually move to the historical 7 million metric standard cubic metres per day level.
GGL regaining historical average volume to add 30% to current volumes.
Expect double-digit volume growth on new gas, CNG stations, and industrial business revivals.
Emkay On Consumer Goods
A shift in the political climate adds another tailwind to India's consumption story.
Already anticipated tailwinds from the rural turnaround and a better monsoon.
Believes that the current majority will keep the government on its toes, with pro-consumption initiatives being key and aiding overall valuations.
Upgrade Hindustan Unilever Ltd. to 'Buy' from 'Add'.
Upgraded Nestle India Ltd. to 'add' from 'reduce'.
Downgraded ITC Ltd. to 'add' from 'buy' amid near-term business pressures.
Now prefers HUL, Dabur India, Bikaji Foods International Ltd., and Honasa Consumer Ltd.
Prabhudas Lilladher On Stocks Whose Near Term Rerating Looks Unlikely
Infrastructure: Larsen and Toubro Ltd., Adani Ports and Special Economic Zone Ltd., road and metro engineering and construction contractor companies.
Capital Goods: Siemens Ltd., ABB India Ltd., Carborundum Universal Ltd., Schneider, Esab India, Ingersoll Rand Ltd., Kirloskar Pneumatic Co.
Defence: Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Bharat Dynamics Ltd., BEML Ltd., Mazagon Dock Shipbuilders Ltd., Cochin Shipyard Ltd.
Cement: UltraTech Cement Ltd., Ambuja Cement Ltd.
New Energy: Reliance Industries, Sterling Wilson Ltd., Waaree Technologies Ltd, L&T, and Praj Industries.
Metals: Jindal Steel and Power Ltd., Jindal Stainless Ltd.
PSU Banks: State Bank of India, Bank of Baroda Ltd., Canara Bank Ltd., Union Bank of India, Punjab National Bank Ltd.
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