Hot stocks: Brokerage view on Globus Spirits, Maruti Suzuki, Supreme Industries and LTIMindtree
Macquarie maintains a neutral view on Maruti Suzuki with a target price of Rs 11,565. India's second-largest state has eliminated taxes on strong hybrids, cutting the price premium over ICE vehicles from 20% to 10%. This change is beneficial for Maruti Suzuki, which holds a 20% market share in strong hybrids as of CY2023.
Brokerage firms such as InCred have an 'add' rating on , while Macquarie and Morgan Stanley have a 'neutral' and 'overweight' rating respectively on . Jefferies has a 'buy' call on , and InCred has upgraded LTI Mindtree to 'add'.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
InCred on Globus Spirits: Add | Target price: Rs 1,559
InCred has maintained an add rating on Globus Spirits and hiked the target price to Rs 1,599 from Rs 1,562.
Firing on all cylinders - ENA (Incl. ethanol), IMIL and IMFL. The company covers the entire whisky segment including single malt. Additionally, the raw material and power costs have normalised, while the negative contribution from the IMFL segment is expected to turn positive from FY28. The EBITDA margins of ethanol/ENA & IMIL moving towards 10% & 20%.
Macquarie on Maruti Suzuki: Neutral | Target Price: 11,565
Macquarie has maintained a neutral view on Maruti with a target price of Rs 11,565
India's second-largest state has reduced the tax on strong hybrids to zero, halving the price premium of strong hybrids versus internal combustion engine (ICE) vehicles from 20% to 10%. This development is seen as positive for Maruti, which holds a 20% market share in strong hybrids as of CY2023.
UP accounts for 10-11% of car sales in India with Maruti having 44% market share. Lower taxes will reduce the payback period from 11 years to 5 years. Focus on localizing strong hybrid technology can further reduce ownership costs driving market share gains in the medium term.
Morgan Stanley on Maruti Suzuki: Overweight | Target Price: Rs 14,105
Morgan Stanley has maintained an 'Overweight' rating on the stock with a target price of Rs 14,105.
UP government waiving road tax is a sizeable incentive provided by a state for hybrid cars and Maruti, being the key player in hybrids, stands to benefit from this. Its hybrid models, Grand Vitara and Invicto have a road tax of Rs 200K to Rs 280K. UP's move could encourage other states to follow.
Further, with more hybrid models to come, the share of hybrids will only rise.
Jeffries on Supreme Industries: Buy | Target price: Rs 6,700
Jefferies has maintained a buy call on Supreme Industries and hiked the target price to Rs 6,700 from Rs 5,390.
The company’s pipe volumes are up 27% YoY in April-May 2024, despite the high base. The focus is on value-added sales, which can aid margin resilience. SKU breadth and distribution depth act as key moats for share gains. Jefferies views the company as a good play on housing, capex, and agri, with estimates of +25% EPS CAGR over FY24-27.
InCred on LTIMindtree: Add | Target price: Rs 5,998
InCread has upgraded LTIMindtree to add from reduce while hiking the target price to Rs 5,998 from Rs 5,377.
Recovery in E&U & FSI verticals & large customers could aid revenue growth while margin underperformance likely bottoming out. FSI, hi-tech recovery could aid double-digit YoY growth in Q4FY25.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
InCred has maintained an add rating on Globus Spirits and hiked the target price to Rs 1,599 from Rs 1,562.
Firing on all cylinders - ENA (Incl. ethanol), IMIL and IMFL. The company covers the entire whisky segment including single malt. Additionally, the raw material and power costs have normalised, while the negative contribution from the IMFL segment is expected to turn positive from FY28. The EBITDA margins of ethanol/ENA & IMIL moving towards 10% & 20%.
Macquarie on Maruti Suzuki: Neutral | Target Price: 11,565
Macquarie has maintained a neutral view on Maruti with a target price of Rs 11,565
India's second-largest state has reduced the tax on strong hybrids to zero, halving the price premium of strong hybrids versus internal combustion engine (ICE) vehicles from 20% to 10%. This development is seen as positive for Maruti, which holds a 20% market share in strong hybrids as of CY2023.
UP accounts for 10-11% of car sales in India with Maruti having 44% market share. Lower taxes will reduce the payback period from 11 years to 5 years. Focus on localizing strong hybrid technology can further reduce ownership costs driving market share gains in the medium term.
Morgan Stanley on Maruti Suzuki: Overweight | Target Price: Rs 14,105
Morgan Stanley has maintained an 'Overweight' rating on the stock with a target price of Rs 14,105.
UP government waiving road tax is a sizeable incentive provided by a state for hybrid cars and Maruti, being the key player in hybrids, stands to benefit from this. Its hybrid models, Grand Vitara and Invicto have a road tax of Rs 200K to Rs 280K. UP's move could encourage other states to follow.
Further, with more hybrid models to come, the share of hybrids will only rise.
Jeffries on Supreme Industries: Buy | Target price: Rs 6,700
Jefferies has maintained a buy call on Supreme Industries and hiked the target price to Rs 6,700 from Rs 5,390.
The company’s pipe volumes are up 27% YoY in April-May 2024, despite the high base. The focus is on value-added sales, which can aid margin resilience. SKU breadth and distribution depth act as key moats for share gains. Jefferies views the company as a good play on housing, capex, and agri, with estimates of +25% EPS CAGR over FY24-27.
InCred on LTIMindtree: Add | Target price: Rs 5,998
InCread has upgraded LTIMindtree to add from reduce while hiking the target price to Rs 5,998 from Rs 5,377.
Recovery in E&U & FSI verticals & large customers could aid revenue growth while margin underperformance likely bottoming out. FSI, hi-tech recovery could aid double-digit YoY growth in Q4FY25.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Source: Stocks-Markets-Economic Times
