Hot Stocks: Brokerages on Amara Raja, United Spirits, Dixon Technologies, and Grasim

Morgan Stanley on Amara Raja: Underweight | Target: Rs 967

Morgan Stanley maintained an underweight rating on Amara Raja with a target price of Rs 967.

MS thinks that the company now matches Exide on capability but needs to catch up on customer wins and in the ramp-up timeline. The lithium battery business's financial returns are still unclear as EV battery deflation continues. The global brokerage firm remains selectively overweight in the segment and prefers Exide over Amara.

Macquarie on United Spirits: Underperform | Target: Rs 1,000

United Spirits saw muted volume growth likely in Q1 with elections and the heatwave to weigh. Macquaries expects 10% growth in prestige sales for Q1, while regular sales would be flattish given continued weakness in the mass-end.
Overall, consolidated EBITDA may be expected to benefit from healthy EBITDA at the IPL subsidiary.

HSBC on Dixon Technologies: Buy | Target: Rs 12,800

HSBC retained a buy call on Dixon, given its scale, strong balance sheet, and client relationships. Further, the policy environment for Dixon is likely to remain favorable.

“Thanks to policy measures, a lot has happened in the electronics sector in India over the past five years,” said HSBC in a note.
Given the high electronics trade deficit, policies will likely continue supporting more backward integration and exports.

Jefferies on Grasim: Buy | Target: Rs 3,000

Jefferies maintained a buy rating on Grasim with a target price of Rs 3,000 as the improved visibility on success could rerate standalone business and the holding company discount.

Jefferies stated it was positively surprised, with higher confidence in the company's delivery. Right preparedness and focus on bringing out research-led Industry best products. Further, the company is also ramping up its advertising 900 campaign, while improving product availability across multiple geographies.

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