Hot Stocks: Brokerages view on Sun Pharma, Hero MotoCorp, IOC and Godrej Consumer

Brokerage firm Jefferies maintained a buy rating on Sun Pharma and Morgan Stanley remained underweight on Hero MotoCorp. Also, Motilal Oswal recommended a buy on IOC and Godrej Consumer.

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

Jefferies on Sun Pharma: Buy| Target Rs 1310
Jefferies maintained a buy rating on Sun Pharma with a target price of Rs 1310. The Q2 miss was largely on higher operating expenses.


The US generics business was disappointing, and the margin got hit by one-offs. The US specialty showed healthy Rx trends.

The Core earnings driver remains intact led by specialty sales ramp-up and India/EM presence.

Morgan Stanley on Hero MotoCorp: Underweight| Target Rs 2521
Morgan Stanley maintained an underweight rating on Hero MotoCorp with a target price of Rs.2,521.

The Q2 beats came on gross margin while the EBITDA was in line with estimates. Higher other operating expenses were on account of model launch expenses and festive promotional spending.

Motilal Oswal on IOC: Buy| Target Rs 115
Motilal Oswal maintained a buy rating on IOC with a target price of Rs 115. OMCs were estimated to be generating a marketing margin of Rs 8.2 on petrol, and a marketing loss of Rs 3.8 on diesel in 3QFY24 to date.

Margins may also be affected by retail fuel price cuts in the wake of upcoming elections and/or a rise in crude oil prices due to quota management by OPEC+.

The stock trades at 6.9x consolidated FY25E EPS and 0.7x FY25E P/BV. The brokerage retains a buy rating on the stock, valuing it at 0.9x FY25E P/BV.

Motilal Oswal on Godrej Consumer: Buy| Target Rs 1150
Motilal Oswal maintained a buy rating on Godrej Consumer with a target price of Rs 1150. GCPL’s consolidated revenue and operating profit were in line with estimates.

The adjusted PAT missed Motilal Oswal estimate by 9.7% YoY, owing to higher tax rate. Healthy earnings growth (EBITDA/PAT CAGRs in mid-20s over FY23-FY25E) is likely to be driven by:

a) superior growth in highly profitable markets such as India and Indonesia;
b) volume growth; and
c) consistent capacity enhancement through capex in the organic portfolio.

Motilal Oswal reiterated the buy rating with a target price of Rs 1,150 (based on 45x FY25 EPS).

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