Hot Stocks: Brokerage view on Page Industries, Zomato, Lupin and ITC

Brokerage firm Jefferies downgraded ITC to hold and upgraded Lupin post Q3 results. Macquarie maintained an underperform rating on Zomato and an overweight rating on Page Industries.

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

Jefferies on ITC: Hold| Target Rs 420

Jefferies downgraded ITC to hold from a buy earlier but slashed the target price to Rs 420 from Rs 530 earlier.

Over the last 3-years, ITC stock returned >3x from bottom to peak. Gains were led by strong cigarette volume growth, scale-up in FMCG, improved capital allocation, & increase in FII holding.

These factors have largely played out, and cigarette volume growth is moderating.

Two budgets in the next 12M also create uncertainty on taxation.

BAT's plans to offload a 4% stake further complicates the matter, also because FII holding is at >3Y high.

Jefferies on Lupin: Hold| Target Rs 1460

Jefferies upgraded Lupin to hold from an underperform rating earlier and also raised the target price to Rs 1460 from Rs 1160 earlier.

The company has returned to double-digit growth in India and sees likely no competition in big-ticket US launch gSpiriva.

With early days in base business improvement, there is a high concentration risk with gSpiriva. The stock has already seen a rally of 50% rally in the last 6 months.

Macquarie on Zomato: Underperform| Target Rs 76

Macquarie maintained an underperform rating on Zomato with a target price of Rs 76. The company has seen steady margin improvements and strong Quick Commerce growth.

Food delivery MTU adds lacklustre at +2%. The global investment bank maintained its guarded stance as shares are pricing in 25-35% 10-Y revenue CAGR and a duopoly industry structure in perpetuity in the face of ONDC.

The market has rewarded Zomato's execution over the past year. The stock is now trading at our fundamental blue-sky valuations.

Morgan Stanley on Page Industries: Overweight| Target Rs 42,962
Morgan Stanley maintained an overweight rating on Page Industries but slashed the target price to Rs 42,962 from Rs 43,814 earlier.

The volume grew 4.5% YoY vs. declining volumes for the last four consecutive quarters. Industry discounting was drastically reduced during the quarter.

Page's inventory is situated better vs. peers. The demand was higher for multi-packs and the premium segment over entry-level products.

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