Hot Stocks: Brokerages view on Siemens, Gail, Marico and Apollo Hospitals

Brokerage firm Axis Capital upgraded Siemens to add rating, UBS upgraded GAIL India to a buy rating, Macquarie has an outperform rating on Marico and it initiated coverage on Apollo Hospitals with an underperform rating.

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

Axis Capital on Siemens: Add | Target Rs 4211
Axis Capital upgraded Siemens to an add rating with a target price of Rs 4,211. It is a relief that most minority votes were against the proposed sale of LV Motors by Siemens.


The rationale for the deal did not resonate with minority investors. “We expect strong P&L performance in the June quarter. Revert to valuing Siemens at 60x,” said the note.

UBS on GAIL India: Upgrade to Buy| Target Rs 150
UBS upgraded Gail India to a buy with a target price of Rs 150. Business is turning from cyclical to structural.

Zonal revenue recognition holds an upside to tariffs, but there is scope for further revisions. India's higher gas demand and GAIL's coming pipelines will likely drive an 8% volume CAGR.

A return on the utility nature of the business could lead to a re-rating of the stock. The stock trades at 24%/50% discounts to its 10-year average P/BV and PE, and a deep discount in investment value.

Macquarie on Marico: Outperform| Target Rs 625
Macquarie maintained an outperform rating on Marico with a target price of Rs 625. The Q1 EBITDA was broadly in line with estimates.

Volume growth is likely to improve from Q2. The company upgraded guidance of 200bps+ EBITDA margin expansion in FY24.

Macquarie on Apollo Hospitals: Underperform| Target Rs 4200
Macquarie initiated coverage of the hospital business. The global investment bank is cautious about the hospital sector in the medium term.

Future growth is primarily tied to capacity expansion. The global investment bank believes softer demand and capacity expansion will drive down profitability.

Regulatory overhang will act as an additional downside. Apollo and Max are trading at significant valuation premiums to peers.

Macquarie initiated coverage on Apollo Hospitals with an underperform rating and a target price of Rs 4200.

It also initiated an underperform rating on Max Healthcare with a target price of Rs 465.

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