Hot stocks: Brokerages maintain ‘overweight’ rating on DLF, Prestige Estates; KIMS, Torrent Pharma get ‘buy’

Brokerages such as JPMorgan maintained its overweight rating on DLF and Prestige Estates, Kotak Institutional Equities initiated a ‘buy’ on Krishna Institute of Medical Sciences (KIMS), and ICICI Securities retained ‘buy’ on Torrent Pharma.

We have collated a list of recommendations from top brokerage firms with the help of ETNow and other sources.

JPMorgan on real estate: Overweight on DLF and Prestige Estates

JPMorgan maintained its ‘overweight’ rating on DLF and Prestige Estates with a target price of Rs 490 and Rs 635, respectively.

The residential cycle has turned positive. Market fundamentals continue to be anchored around high affordability and market share continues to gravitate towards listed developers, said the note.

Kotak Institutional Equities on KIMS: Initiate Buy| Target Rs 1,590

Kotak Institutional Equities initiated coverage on KIMS with a ‘buy’ rating and a target price of Rs 1,590. Armed with a solid execution track record, a calibrated expansion approach, and a healthy balance sheet, KIMS is well positioned to build on its strong hospital network in Andhra Pradesh and Telangana with entries in neighbouring states, too.

Despite a 75 per cent addition to its bed capacity over FY2022-26E, the brokerage expects KIMS to report a robust 17.9 per cent Ebitda CAGR in the period.

ICICI Securities on Torrent Pharma: Buy| Target Rs 1,769

ICICI Securities maintained a ‘buy’ on Torrent Pharma with a target price of Rs 1,769. Torrent Pharma (Torrent) is acquiring Curatio Healthcare for a purchase consideration of Rs20 billion.

“While the implied deal valuation of ~7xFY23E sales and ~23x FY23E Ebitda (assuming 30% Ebitda margin) is more expensive than the acquisitions done by the company in the past, there is a significant cross leveraging across the portfolio,” said the note.

Curatio is a leading player in the dermatology space and derives ~84 per cent of its revenue from cosmetic dermatology. The acquisition is expected to enhance the presence of Torrent Pharma in the derma market.

“We believe this acquisition is synergistic to Torrent’s domestic business. However, the acquisition is expected to be EPS dilutive on account of higher interest and depreciation/amortisation charges,” the note added.

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