Hot Stocks: Brokerages on VRL Logistics, Nykaa, Titagarh Wagons and MGL

Global brokerage firm HSBC maintained a buy rating on VRL Logistics, Macquarie retained an underperform rating on Nykaa, Antique initiated a buy recommendation on Titagarh Wagons and Citigroup has a buy rating on MGL.

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

HSBC on VRL Logistics: Buy| Target Rs 800

HSBC maintained a buy rating on VRL Logistics with a target price of Rs 800. The global investment bank sees an EBITDA margin expanding by 130 bps to 17% in FY24.

“The branch network expansion and tailwinds from industry formalization are likely to aid FY24 growth,” the brokerage said.

“It sees strong double-digit volume growth, which is a positive sign for the company,” it added.

Macquarie on NYKAA: Unerperform| Target Rs 115
Macquarie maintained an underperform rating on Nykaa with a target price of Rs 115.

The global investment bank liked the company’s focus on driving market-leading GMV growth across beauty/fashion.

It also likes its target of steady margin expansion from leverage gains.

“The Company was evasive on losses in fashion/beauty distribution businesses remaining at FY23 levels citing focus on growth needs,” it added.

Antique on Titagarh Wagons: Initiate Buy| Target Rs 694
Antique initiated a buy rating on Titagarh Wagons with a target price of Rs 694. The brokerage firm sees the company as a jewel in the making.

“The company has created a manufacturing set- up, which is difficult to replicate. It has the capacity to grow its turnover to over Rs 9000-10,000 cr over the next five years,” it said.

The global investment bank expects an earnings CAGR of 53% over FY23- 26 and generates an average RoE of +25%.

“The stock is cheap and does not capture long-term growth potential,” it added.

Citigroup on India Gas: Buy MGL| Target Rs 1210
Citigroup initiated a pair trade on MGL and Gujarat Gas. Investors can go overweight on MGL and underweight on Gujarat Gas.

“Gujarat Gas outperformed both MGL and IGL by 10-13% over the past few weeks. For Gujarat Gas, the favourable propane-to-gas economics is reversing again,” it saud.

“Asian spot LNG prices have moved higher from~$9/mmbtu to ~$13/mmbtu levels, while propane prices have fallen from $555/T to $450/T. MGL should benefit from a sanguine margin outlook and favourable base effect for volumes. MGL trades at 10x FY25E P/E Vs Gujarat Gas at 18x,” it added.

The global investment bank maintained a buy rating with a target price of Rs 1,210. The global investment bank maintained a neutral rating on Gujarat Gas with a target price of Rs 530.

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