Hot Stocks: Brokerages on L&T, Dr Reddy’s, Nazara, SRF, Hindalco and Godrej Consumer

Brokerage firm Jefferies maintained a buy rating on Nazara Technologies. Jefferies retained its hold rating on SRF and maintained its buy rating on L&T as well as on Dr Reddy’s Laboratories post March quarter results. JPMorgan remained overweight on Hindalco and overweight on Godrej Consumer.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Jefferies on L&T: Buy | Target Rs 2900
Jefferies maintained a buy rating on L&T with a target price of Rs 2900 post March quarter results.

“Q4 EBITDA was weaker than expected. L&T reported a beat on order guidance after seven years which is a positive sign. L&T should benefit from execution and margin recovery,” it said.

Jefferies on Dr Reddy’s Laboratories: Buy | Target Rs 5650
Jefferies maintained its buy rating on Dr Reddy’s Laboratories with a target price of Rs 5650.

“Revlimid sales drop led to miss estimates. The US sales could remain volatile but the new product launch momentum remains strong across geographies,” it said.

The global investment bank lowers FY24 EPS by 5% on lower margins.

Jefferies on Nazara Technologies: Buy | Target Rs 700
Jefferies maintained a buy rating on Nazara Technologies post Q4 results with a target of Rs 700.

“Worsening margin outlook, but the stock offers value at current levels,” it said.

The global investment bank slashed FY24/25 revenue estimates by 2-3% and trim margin estimates by 50-80bps.

“Key disappointments were lower growth and higher churn in Kiddopia, lower margin in Nodwin and slower growth in Adtech,” it added.

Jefferies on SRF: Hold | Target Rs 2380
Jefferies maintained a hold rating on SRF with a target price of Rs 2380. The global investment bank expects margins to mean-revert from life-highs on rising supplies.

“FY24 could be a tough year for SRF. Packaging Film margins collapsed and elevated base in chemicals will drag growth,” it said.

JPMorgan on Hindalco: Overweight | Target Rs 490
JPMorgan maintained an overweight rating on Hindalco with a target price of Rs 490.

“Improved earnings at Novelis supported March quarter results. EBITDA at $431 saw a sharp improvement from a nine-quarter low of $376 recorded in Q3. Margin improvement on a QoQ basis was seen in most regions,” it said.

“The net debt declined to $4.1bn (-7% y/y,-12% q/q) which is a positive sign,” it added.

JPMorgan on Godrej Consumer: Overweight | Target Rs 990
JPMorgan maintained an overweight rating on Godrej Consumer with a target price of Rs 990.

“Q4 margins led the earnings beat.India's volume growth was solid, and Indonesia's cc growth returned to positive territory,” it said.

The global investment bank expects an upward revision to the earnings estimates given better than expected margin delivery.

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