Stock brokerages including Anand Rathi, Phillip Capital, Sharekhan, and Nuvama Institutional Equities have come out with research reports on select stocks namely Apollo Pipes, Bharat Forge, Bajaj Finance and Star Health. Here's what brokerages said about these counters.
Brokerage firm Anand Rathi has a ‘Buy’ rating on Apollo Pipes stock with a bull case fair value of Rs 850 per share. According to the brokerage, Apollo Pipes' position is supported by a strong dealership network in all over India with over 700 dealers i.e 62% in north, followed by 14% south and 11% west.
Analysts at Anand Rathi said, “We believe that company will continue its strong momentum. The Revenue and EBITDA is expected to grow at a CAGR of 21% and 62% respectively on account of growth factors and a lower base over FY23 to FY25E. We initiate the coverage with a “BUY” rating on this stock by assigning 35x of FY25E earnings with a target price of Rs 850.”
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Sharekhan has a ‘Buy’ rating on Bharat Forge stock with a target price of Rs 1,311 per share. According to the brokerage, the expansion of valuation indicates that street is not considering now it pure play on auto but accepting it as a prominent engineering player to play on bouquet of defence, EV, aerospace along with traditional auto and non-auto play.
"We believe that its own technologies combined with traditional forging expertise would allow it to generate decent profitability in defence business in medium to long term. Robust order book with sustainable high margin would converge into sustenance of high valuation and the rerating is expected to continue in our view, given engineering companies demands a premium valuation in market. Hence, we initiate positive viewpoint coverage on Bharat Forge with 22% upside potential," said Sharekhan.
Brokerage firm Phillip Capital has a ‘Buy’ call on Bajaj Finance stock with a target price of Rs 10,000 per share. Most investors look for the troika of growth, risk management and high capital buffers in a lending business. According to the brokerage, Bajaj Finance ticks all boxes to make a compelling investment argument.
Bajaj Finance is “transitioning to a financial services and payments player in the medium term and is entering new credit segments like microfinance, new car finance, flexi loans on QR for merchants, and tractor finance, which will scale up over the medium term. A diversified funding base, the management’s deep pool of domain expertise, AAA rating, and positive ALM in the less than one-year bucket provides tailwinds,” said analysts at Phillip Capital.
Brokerage firm Nuvama Institutional Equities has a ‘buy’ rating on Star Health stock with a target price of Rs 770 per share. According to the brokerage, Star Health has built an agency-led dominant market leadership position in a fast growing retail health market. The company has been making underwriting profits, and is clinically focused on driving underwriting and operational excellence. Analysts expect a greater network effect with scale to drive up returns ratios to 16.7% by FY26E versus 12.4% in FY23.
According to analysts at Nuvama, Star Health has been able to deliver industry-leading underwriting performance, generating underwriting profits consistently from FY16 within the health segment. The Jhunjhunwala-backed company has increased premiums by about 25%. "We compared the prices of Star Health’s products with that of other insurers; even after the increase in premium rates, Star Health's policies seem to be competitively priced,” said analysts at Nuvama.
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