Hot stocks: Brokerages on Tata Motors, FirstCry and Exide

Brokerage firms Morgan Stanley and BofA have initiated coverage on Brainbees Solutions with an overweight and buy rating respectively. Emkay Global has upgraded Tata Motors to a ‘buy’ from ‘add’ while Citi has maintained a buy rating on Exide while cutting the target price of the stock.

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

Emkay on Tata Motors: Buy | Target price: Rs 1,175


Emkay Global has upgraded Tata Motors to buy from an add rating earlier with a target price of Rs 1,175.

Emkay states that China is relatively smaller for JLR whose profitability and deleveraging story is largely intact. The demand and margin outlook is improving for domestic CV business while for PVs, the segment is relatively better placed than the industry on new launches and lower inventory. The company displays a healthy profitability outlook and undemanding valuation.

Morgan Stanley on Brainbees: Overweight | Target price: Rs 818

Morgan Stanley has initiated coverage on Brainbees Solutions with an Overweight rating and a target price of Rs 818.

The global brokerage firm said that the company is a quintessential play on the FirstCry and is well placed to capitalize on India's growing childcare market. There are multiple levers of growth and profitability improvement in place. Morgan Stanley sees some option value through Globalbees Brands. Despite strong share-price performance since listing, current valuations indicate further upside. The foreign brokerage firm benchmarks Brainbees stock against Indian consumer discretionary stocks given the similarities in growth and steady-state EBITDA margin profiles.

BofA on Brainbees: Buy | Target price: Rs 770

BofA initiated coverage on the stock with a buy rating and a target price of Rs 770.

BofA believes that the company is competitively well positioned in a rational MBK market and has multiple levers across businesses with a clear path to profitability. The fundamentals in all businesses are iImproving and the margins may surprise. FirstCry is a niche vertical online commerce platform and has presence in the Middle East and with private labels and offline stores. India remains one of few larger economies that has a better birth rate vs China/US.

Citi on Exide: Buy | Target price: Rs 560

Citi has maintained a buy call on Exide but cut the target price to Rs 560 from Rs 610.

Citi sees a sluggishness in the auto OEM volumes which is likely to impact revenue growth, but not significantly. Exide cannot remain unscathed from this moderation in CV/PV volumes. However, the company is expected to benefit from the replacement demand and a growth in OEM sales (sold in FY 22/23) entering their first battery-replacement cycle in FY25. Meanwhile, lead prices have seen some moderation in recent months.

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