Brokerage radar: Brokerage firms have released their reports regarding shares of 6 companies before the start of trading of February 4 today. These include stocks such as LIC Housing Finance, Ester DM, Divies Labs, Gland Pharma, Vinati Organics and Paytm. Let us know what is the opinion about these shares of brokerage and what target price they have fixed for them-
1. LIC Housing Finance
Foreign brokerage Nomura has rated this stock (BUY), but its target price has been reduced from Rs 795 to Rs 700. This is estimated at about 25.5 per cent in the company’s shares from Monday’s closing price. Brokerage says Q3’s profits were 4% higher than expected, although NII had a slight decline. Loan distribution saw lethargy, due to the problems related to policy in some states. Net interest margin (NIM) remained stable on a quarterly basis, but the rate cuts may cause pressure. 13–14% ROE is estimated during FY25-27.
At the same time, HSBC has increased the rating of this stock from ‘Sell’ to hold and has fixed a target price of Rs 600. Brokerage said that the company’s market share is decreasing and it is facing challenges in pricing. Lower credit costs reduced the pressure on earnings to some extent. EPS estimate was increased due to better asset quality. The current valuation has improved significantly compared to earlier.
2. Aster DM Healthcare
Brokerage firm HSBC has increased the rating of this stock to BUY and has fixed a target price of Rs 580 for this. This is estimated at the company’s shares of about 24 per cent due to Monday’s closed price. Brokerage says the Q3 demonstrations remained according to estimates, but more taxes and other lump sum costs affected profits. The position of hospital business is strong, the company’s focus on the plan to increase the number of beds and efficiency remains. Improvement in operating margin will be an important factor for further trends.
3. Paytm
Brokerage firm Bernstein has rated the share to the outperform and has kept the target price of Rs 1,100 for this. This is estimated at the company’s shares of about 42 per cent due to Monday’s closed price. Brokerage said that Paytm would buy a 25% stake in an embedded finance startup in Brazil. This acquisition is said to be negative, as the company is still not profitable in the Indian market. Looking for new markets can question the company’s focus ability.
4. Vinati Organics
Motilal Oswal has given this stock a ‘Buy’ rating and has kept its target price of Rs 2,600 per share. This is estimated at the company’s shares by about 49 per cent due to Monday’s closed price. Brokerage states that the Ebitda remained as per estimates, but the profits were less than the estimate due to low income from other sources. The company believes that 20% CAGR growth is possible in the next 3 years, which will be based on new and existing products.
5. Divi’s Labs
Foreign brokerage firm Jefferies has advised to hold this stock and has kept a target price of Rs 6,280 per share for this. This is estimated at about 6.7 percent of the company’s shares from Monday’s closed price. Brokerage says that the income of Q3 was according to estimates. At the same time, due to better product mix, EBITDA was better than estimates. Custom is carrying forward synthesis growth, while the GX business also improved in the quarter. The GX segment has pricing pressure, but the volume is partial relief from being high. The company is confident on GLP-1, but needs to reduce the high concentration of Sacubitril Valsartan by FY27.
6. Gland Pharma
Foreign brokerage firm Jefferies has rated the share to the underpaper and its target price has reduced to Rs 1,350. This is estimated to have a fall of about 11 per cent in the company’s shares from Monday’s closed price. Brokerage said Q3 was another disappointing quarter for the company, in which the growth of base business was weak. The recently acquired CEnexi Business put more pressure. Expectation of improving Q4 in base business, but the time limit of CEnexi’s breakeven slipped a year ahead. Weak examinations and no major catalis are seen in the near future. FY25-27 EPS estimates have been cut by 1–4%, as the CEEEXI recovery is further delayed.
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