Hot Stocks: Brokerages on Varun Beverages, Divi’s Laboratories, Nykaa and Bharat Forge

Brokerage Jefferies maintained a buy rating on Varun Beverages and downgraded Divi’s Laboratories to hold. CLSA downgraded Bharat Forge to sell and Morgan Stanley maintained an overweight rating on Nykaa.

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

Jefferies on Varun Beverages: Buy| Target Rs 1100

Jefferies maintained a buy rating on Varun Beverages post Q2 results but hiked the target price to Rs 1100 from Rs 950 earlier.

The volume growth accelerated to the mid-teens after a sluggish trend in the earlier quarter. The margin too surprised positively.

The company is set to expand its capacity by 45% ahead of the next season, which signals management optimism on growth.

Valuation has significantly re-rated but should sustain.

Jefferies on Divi’s Laboratories: Hold| Target Rs 3510
Jefferies downgraded Divi’s Laboratories to hold from buy post Q2 results and also slashed the target price to Rs 3510 from 4300 earlier.

The company missed earnings estimates and the major growth drivers are one year away. Pricing pressure and higher opex lead to margin contraction.

The key growth drivers are likely to trigger only post 2HFY25. The company slashed FY24-26E EPS by 15-18%.

Morgan Stanley on Nykaa: Overweight| Target Rs 173
Morgan Stanley maintained an overweight rating on Nykaa with a target of Rs 173. The fashion business is showing some progress. Growth and margins to sustain.

The trends are expected to improve.

CLSA on Bharat Forge: Sell| Target Rs 987
CLSA downgraded Bharat Forge to sell from underperform post Q2 results with a target of Rs 987.

Strong growth in the domestic non-auto revenues lifts Q2. Turnaround of subsidiaries is likely to drive improvement in the consolidated margins.

New verticals will be the growth drivers going forward. The share price action causes a downgrade.

(You can now subscribe to our ETMarkets WhatsApp channel)

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