Tag: Buy

Bromine prices have fallen sharply in China, but are expected to recover in the fourth quarter of fiscal year 2024. Archean Chemical (ACI), the largest bromine producer in India, has reported strong Q1 FY2024 results despite the volatility in bromine prices. ACI is also in the process of commissioning its derivative plant, which will increase earnings visibility in the coming years.

ICICI Securities upgraded NMDC's rating to "BUY" from "ADD" and raised its target price to INR 180 from INR 130. The brokerage firm expects NMDC's sales volume to breach the 32-40 million tonne range in FY24E, and its long-term volume visibility is clearer as the roadmap for 100 mtpa by FY30 is being worked on. Commercial mining in Odisha is also progressively getting undermined, resulting in more opportunity. RoE may improve further from the current level of 22% as the mining business takes the centre stage and the steel plant is demerged.

Emami's promoters' pledge is expected to be reduced to 15% by FY2024-end after the sale of AMRI Hospitals. The company is also targeting high single-digit revenue growth in FY2024 with an EBITDA margin expansion of 200-250 bps. Emami's discounted valuation and improving growth prospects make it a good pick in the mid-cap FMCG space.

Dalmia Bharat has hiked cement prices in the Eastern region by Rs. 70 per bag in two tranches. The company is also planning to hike prices by Rs. 20 per bag in a few states in the East in the coming weeks. The demand environment in the Eastern region has improved and is expected to sustain. DBCL is targeting 15-17% year-on-year volume growth for FY2024. The company will add a 4.9 MTPA capacity in South India to reach 46.6 MTPA by FY2024 end.

Sunteck Realty is a leading real estate development company in Mumbai with a proven track record of marketing ultra-luxury projects. The company has a strong portfolio of projects in progress and under development, and we expect its pre-sales to grow by 2x over the next three years. SRIN is likely to generate strong cash flow over the next few years, which will enable it to step up new project additions. We initiate coverage on Sunteck Realty with a "Buy" rating and a DCF-based NAV of Rs565 per share.

ICICIBC's Annual Report shows that the bank is making progress towards sustainable growth, with strong contingency buffers, robust underwriting and risk-monitoring mechanisms, and a healthy balance sheet. The bank's retail franchise strengthened with 23% YoY growth (18% YoY growth in home loans), and it sustained robust traction in liabilities. It maintains one of the highest proportions of Retail deposits, with a strong CASA mix. Overall, the report is positive and shows that ICICIBC is well-positioned for sustainable growth.

BOI is expected to see strong cash recoveries and loan growth in FY24, which will lead to an improvement in its return ratios. We believe that the stock is undervalued at the current price and has the potential to outperform in the coming quarters.

CAMS, the leading registrar and transfer agent (RTA) in India's mutual fund (MF) industry, held an Analyst Day to share its in-depth insights on various industry-first solutions and fresh developments in the numerous business categories it operates in. The company is optimistic about the future growth of its non-MF businesses, which are expected to benefit from structural tailwinds and a favorable macro environment. CAMS believes that each of these businesses has the potential to generate around INR 0.7-1 billion over the next three to four years.

Godrej Properties (GPL) has set ambitious goals for FY24, including INR140 billion in pre-sales, capitalizing on its strong balance sheet, and maintaining its commitment to sustainability. The company has made a strong start to the fiscal year, successfully adding INR64.5 billion worth of projects. We reiterate our BUY rating on GPL with a target price of INR1,915.