Foreign brokerage JP Morgan kept its ‘overweight’ stance on Reliance Industries intact with a target of Rs 3,170. It is hopeful of some big bang announcements in the upcoming annual general meeting (AGM) of
as the next catalyst.
It expects a strong Q1 driven by O2C but said there are concerns around regulatory risk, post diesel export tax. “The tax will prevent a further upside in O2C,” said JP Morgan.
Credit Suisse has initiated its coverage on
General Insurance with an outperform rating and a target price of Rs 1,400 as it believes execution on growth and retail health franchise scale-up will drive stock re-rating.
The brokerage said that delayed ROE recovery warrants a discount to the long-term multiple. It values the company at 32x 24-month forward earnings to arrive at the target.
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It has also initiated its coverage on with an ‘outperform’ rating and a target price of Rs 600 as the earnings are likely to bounce back as the claims ratio improves sharply post Covid.
The brokerage is expecting industry growth to outperform with about 22 per cent CAGR over FY22-25. “Premium growth will be led by continued agent network expansion,” Credit Suisse said.
On the other hand, Credit Suisse remains cautious on the Indian steel industry. It has maintained its ‘underperform’ rating on
and kept its stance neutral on .
Domestic prices are premium to imports, it said, anticipating a further correction in stocks as inventory inches up.
Another brokerage CLSA has maintained its ‘outperform’ rating on
Product with a target price of Rs 890 as it expects the company to report an 8 per cent growth in topline but sees earnings decline by 2 per cent year-on-year.
Weaker margin to hurt earnings, said CLSA but ease in palm prices to aid with lag. “200 bps contraction in its EBITDA margin to 17.8 per cent is likely,” it added.
CLSA maintained its ‘outperform’ rating on another FMCG firm
. It has a target of Rs 610 on the stock as it believes that a strong show in beverages helps negate revenue decline in healthcare.
However, the global brokerage expects a better topline with a weaker margin from the company. “Control on expenses would limit the OPM contraction. Weak sales mix and inflationary raw material could hurt the company,” it added.
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