Brokerages initiate coverage on Zomato & 4 other stocks. Check target prices
1/6
On Radar
A number of brokerage firms have initiated coverage on several stocks such as Zomato, Dixon Technologies, and Inox Wind with targetted upside of up to 35%. Take a look:
2/6
Inox Wind | CMP: Rs 209
Systematix Institutional Equities initiated coverage on Inox Wind with a 'Buy' rating. The brokerage firm set a target price of Rs 262 on the stock, which implies an upside potential of 25% from the current market prices.
"With the current order book at 1.3 GW, we expect Inox Wind to execute 450MW/500MW of orders in FY24/FY25 likely to result in a sharp reversal in its FY24 earnings. We initiate BUY with a target price of Rs 262/share, based on 23x FY25E EPS," it said.
"With the current order book at 1.3 GW, we expect Inox Wind to execute 450MW/500MW of orders in FY24/FY25 likely to result in a sharp reversal in its FY24 earnings. We initiate BUY with a target price of Rs 262/share, based on 23x FY25E EPS," it said.
3/6
Zomato | CMP: Rs 101
Equirus Securities initiated coverage on Zomato with a 'Long' rating. The brokerage firm set a target price of Rs 135 on the stock, which shows an upside potential of nearly 35% from the current market prices.
"At our DCF-based Dec’24 TP of Rs 135, the stock trades at FY27E P/E of 37x and an EV/EBITDA of 23x – attractive in our view given asset light business model and solid free cash flow generation. We estimate pre-tax OCF to EBITDA to remain >100% in the steady state and ROE/core ROIC to reach 13%/39% in FY27E," it said.
"At our DCF-based Dec’24 TP of Rs 135, the stock trades at FY27E P/E of 37x and an EV/EBITDA of 23x – attractive in our view given asset light business model and solid free cash flow generation. We estimate pre-tax OCF to EBITDA to remain >100% in the steady state and ROE/core ROIC to reach 13%/39% in FY27E," it said.
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4/6
Voltas | CMP: Rs 907
Motilal Oswal reinitiated coverage on Voltas with a 'Buy' rating. The brokerage firm set a target price of Rs 1000 on the stock, which indicates an upside potential of 10% from the current market prices.
"We reinitiate our coverage on VOLT with a BUY rating and a TP of Rs 1,000 premised on 40x FY25E EPS (similar to last 10 years’ one-year forward average P/E multiple, before losses of Voltbek) and Rs 38/share for Voltbek. We expect VOLT to retain a market share of 21%+ over the next few years as it would continue to enjoy the leadership position in the RAC segment," it said.
"We reinitiate our coverage on VOLT with a BUY rating and a TP of Rs 1,000 premised on 40x FY25E EPS (similar to last 10 years’ one-year forward average P/E multiple, before losses of Voltbek) and Rs 38/share for Voltbek. We expect VOLT to retain a market share of 21%+ over the next few years as it would continue to enjoy the leadership position in the RAC segment," it said.
5/6
Beta Drugs | CMP: Rs 1,056
Nuvama initiated coverage on Beta Drugs with a 'Buy' rating. The brokerage firm set a target price of Rs 1,325 on the stock, which shows an upside potential of 25% from the current market prices.
"A strong pipeline of FTL/FFTL products, approvals from the export market, client additions in the domestic market, and a healthy Balance Sheet augur well for the company. Average RoE stood at 24% in the past three years. The stock is currently trading at a P/E ratio of 15x average EPS for FY25/FY26. Our TP of Rs 1,325 is based on 20x average EPS for FY25E/FY26E," Nuvama said.
"A strong pipeline of FTL/FFTL products, approvals from the export market, client additions in the domestic market, and a healthy Balance Sheet augur well for the company. Average RoE stood at 24% in the past three years. The stock is currently trading at a P/E ratio of 15x average EPS for FY25/FY26. Our TP of Rs 1,325 is based on 20x average EPS for FY25E/FY26E," Nuvama said.
6/6
Dixon Technologies| CMP Rs: 5,176
Domestic brokerage Kotak Institutional Equities initiated coverage on Dixon Technologies with a 'Sell' rating. The brokerage firm set a target price of Rs 4,000 on the stock, which shows a downside of 23% from the current market prices.
"Key assumptions for DCF are -- 16% FY2025-45 revenue CAGR and stagnant RoIC, ~Rs500 per share resulting in a 15% value share from component manufacturing or 3X FY2026E OCF, and (3) 6%/12% terminal growth/WACC," Kotak said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
"Key assumptions for DCF are -- 16% FY2025-45 revenue CAGR and stagnant RoIC, ~Rs500 per share resulting in a 15% value share from component manufacturing or 3X FY2026E OCF, and (3) 6%/12% terminal growth/WACC," Kotak said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)