Stock brokerages including Sharekhan, Prabhudas Lilladher, Motilal Oswal, and HDFC Securities have come out with research reports on select stocks namely Coal India, Wipro, ICICI Lombard, and Cyient. Here's what brokerages said about these counters.
Brokerage firm Sharekhan has a ‘Buy’ rating on Coal India stock with a revised target price of Rs 270. According to the brokerage, Coal India’s valuation of 6.3x/5.6x FY24E/FY25E EPS is close to the trough level, and the stock offers a high dividend yield of around 10%.
“Coal India’s board has given in-principle approval to divest a 25% stake in Bharat Coking Coal Limited (BCCL) and a stake sale along with potential listing could help unlock value,” said Sharekhan, adding that lower-than-expected volume offtake amid any weakness in electricity demand and realisations could affect margins and earnings outlook. The government’s divestment plan could act as an overhang on the stock.
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Domestic brokerage Prabhudas Lilladher has a ‘Buy’ rating on Wipro stock with a target price of Rs 470 per share. The stock has been in a gradual rise with a series of higher bottom formation patterns on the daily chart and has moved past the significant 200 period daily MA and 50EMA levels near 390-395 zone with improvement in the bias.
“The RSI is also well placed and is on the rise with strength indicated for further upward movement in the coming days. With the chart looking good, we suggest buying and accumulating Wipro stock for an upside target of 470 keeping the stop loss of 395,” said analysts at Prabhudas Lilladher.
Brokerage firm Motilal Oswal has a ‘buy’ rating on ICICI Lombard stock with a target price of Rs 1,550 per share. The brokerage believes that going ahead, growth in the Motor segment is likely to be back-ended, with the company waiting for the rationalization of pricing in the OD segment.
“Synergy benefits from the Bharti AXA merger (technology related), scale benefits, and improvement in mix in the Health business (higher share of retail health) should help to improve the combined ratio and RoE over the next couple of years,” said Motilal Oswal keeping a bullish view on ICICI Lombard.
Brokerage firm HDFC Securities has a ‘Buy’ rating on Cyient stock with a bull case fair value of Rs 1,816 per share. The brokerage said, “Cyient’s focus on large deals, client mining, strong relationship with clients, healthy order book and timely acquisitions to support its product solutions profile could result in a healthy revenue trajectory in coming years. This, coupled with recovery in the aerospace division and healthy deal pipeline in DLM bodes well for revenue growth.”
Investors can buy Cyient in the Rs 1,547-1,577 band and add on dips in the Rs 1,403-1,423 band (17.5x FY25E EPS). “We believe the base case fair value of the stock is Rs 1,695 (21x FY25E EPS) and the bull case fair value of the stock is Rs 1,816 (22.5x FY25E EPS) over the next 2-3 quarters,” said analysts at HDFC Securities.
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