Stock brokerages including Axis Securities, Sharekhan, HDFC Securities, and Motilal Oswal have come out with research reports on select stocks namely Birla Corporation, NTPC, Aster DM Healthcare, and Star Health. Here's what brokerages said about these counters.
Brokerage firm Axis Securities has a ‘Buy’ rating on Birla Corporation stock with a target price of Rs 1,250 per share. According to the brokerage, ramping up new Greenfield units in Maharashtra would significantly support the company’s revenue and volume growth going forward.
Analysts at Axis Securities expect Birla Corporation to grow Sales, EBITDA and APAT at a CAGR of 12%, 15% and 23% respectively during FY22-FY25E on the back of its strong position in the high-demand central region, higher sales of premium products, cost optimization measures, and increased cement demand. “The stock is currently trading on 8.5x and 7x FY24E/FY25E EV/EBITDA and EV/tonne of USD73 and 70 which is attractive compared to other similar peers in the industry,” it said.
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Sharekhan has a ‘Buy’ rating on NTPC stock with a target price of Rs 260 per share. According to the brokerage, a likely IPO for NTPC Green Energy Limited would help derive a better valuation of NTPC RE business and potential value unlocking for investors.
NTPC’s focus on new areas of green hydrogen/battery storage would diversify earnings streams in medium to long-term, according to analysts at Sharekhan. “NTPC’s risk-averse regulated business model provides earnings growth visibility/RoE improvement and RE expansion would drive gradual re-rating of the stock as it would allay concerns on the ESG front,” they said.
HDFC Securities has a ‘Buy’ rating on Aster DM Healthcare stock with a bull caser fair value of Rs 374 per share. The brokerage firm is positive on the company’s India business due to ramping up of operation in newer facilities, improving specialty mix and better operational efficiencies.
"Even after the recent run-up in the stock price, it trades at ~9.5x FY25E EV/EBITDA, which is 25-40% discount to Indian peers. Investors can buy the stock in the band of Rs 317-323 and add more on dips to Rs 282-288 band (8.75x FY25E EV/EBITDA, 17.5x FY25E EPS). At CMP, the stock trades at 9.5x FY25E EV/EBITDA, 19.7x FY25E EPS," said analysts at HDFC Securities.
Motilal Oswal has a ‘buy’ rating on Star Health stock with a target price of Rs 730 per share. The brokerage believes that the company will continue to grow faster than the industry in terms of premium.
Analysts at Motilal Oswal expect Star Health to deliver a 19% gross premium CAGR over FY23-25, led by strong growth in Retail Health Insurance. The management expects strong growth in the group segment as well. The company has maintained its guidance for the combined ratio to be in the range of 93-95% and claims ratio at 63-65%. “The confidence in the guidance stems from price hikes, strong growth in benefits-based products in the banca channel, and significant benefits from fraud claim detection,” it said.
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