Hot Stocks: Brokerage view on Lupin and Gujarat Gas; Marico gets an upgrade

Investec on Marico: Buy| Target Rs 616

Investec upgraded to a buy from hold earlier and raised the target price to Rs 616 from Rs 572 earlier.

“The operating performance in Q4 was largely in line with estimates. Diversification in the India portfolio, return of pricing and recovering international performance provides us confidence,” said the note.

The near-term margins are unlikely to expand. The research firm believes that the company has sufficient triggers for longer-term margin improvement.

The volume-led revenue growth is likely to recover and that will boost multiples.

Jefferies on Godrej Consumer: Buy| Target Rs 1520

Jefferies maintained a buy rating on Godrej Consumer with a target price of Rs 1520. The Q4 earnings were above estimates with 18% LFL Ebitda growth.

Key positives include industry-leading volume growth, strong traction in Indonesia and good EBITDA delivery.

Weak HI was the key dampener, given extended winter, albeit further initiatives (LV launch) here should help.

JPMorgan on Gujarat Gas: Underweight| Target Rs 396

JPMorgan maintained an underweight rating on Gujarat Gas but raised the target price to Rs 396 from Rs 360 earlier.

The net profit was ahead of estimates on lower raw material costs, and one-off gains. The EBITDA per unit for the quarter increased significantly to Rs.6.7/scm.

It leaves room for upgrades if the company can drive volumes up and maintain Q4 margin run rates.

JPMorgan on Lupin: Neutral| Target Rs 1550

JPMorgan maintained a neutral rating on Lupin with a target price of Rs 1550.

The Q4 was broadly in line with estimates and margins were ahead of expectations. The key positives are margin improvement, continued strength in EMEA, and reduction in net debt.

However, lower growth in the India business is a key negative.

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