Hot Stocks: Jefferies maintains ‘buy’ on Dixon Tech; Citigroup ‘neutral’ on Torrent Pharma

Brokerages such as Citigroup maintain a 'neutral' rating on Torrent Pharma, Jefferies retains a 'buy' on Dixon Technologies, and Emkay has a 'buy' on Power Grid.

We have collated a list of recommendations from top brokerages with the help of ETNow and other sources:

Citigroup on Torrent Pharma: Neutral | Target: Rs 1,700

Citigroup maintained a ‘neutral’ on Torrent Pharma with a target price of Rs 1,700. India is growing at a CAGR of 16% over the last 10 years.

Sequoia-backed Curatio Health gets 65% of its revenue from the top five brands. Acquisition can turn out to be 9-5% EPS dilutive in FY23/24E EPS.

Jefferies on Dixon Technologies: Buy | Target: Rs 5,035
Jefferies maintained a ‘buy’ rating on Dixon Technologies with a target price of Rs 5,035. Dixon has a diversified product mix and 5 PLI (Production Linked Incentive) scheme approvals. The mobile division seems to be ramping well, which is a positive sign.

OPM (Operating Profit Margin) is expected at ~4%, as ~75% mix is OEM (original equipment manufacturer). The management is bullish on export potential and backward integration.

Emkay Global on Power Grid: Buy | Target: Rs 250
Emkay Global maintained a ‘buy’ on Power Grid with a target price of Rs 250. We maintain ‘buy’ on the stock with June 2023 target price of Rs250.

“We believe Power Grid offers a 6/7% dividend yield with 5/6% earnings CAGR, totaling to 12-14% return over the medium term,” said the note.

There will be higher spending on transmission assets, as more renewable energy (RE) additions take place in the sector.

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