Tag: Recommendations

TCS: Strong Deal Momentum and Revamped Organizational Structure Provide Resilience and Position the Company for Growth TCS, India's largest IT services company, has reported robust deal wins over the past few quarters. The company is also well-positioned to grab market share during the current challenging environment due to its strong domain expertise, global presence, and proven ability to cross-sell its services. The recent organizational restructuring is expected to alleviate concerns and aid in driving growth. Analysts maintain a Buy rating on TCS with a revised price target of Rs. 4,200, as they believe the company is well-placed to grab cost takeout as well as digital transformation programs along with opportunities arising from vendor consolidation.

Dabur is aiming to grow its business much faster in the next few years and improve its profits. It is doing this by focusing on its Healthcare and Food & Beverages businesses and by making its operations more efficient. We believe that Dabur is a good investment and recommend that investors buy the stock.

Prestige Estates Projects reported strong residential sales bookings of ₹129 billion in FY23. However, the company's net debt levels have risen by ₹25.6 billion over the last 12 months. The key monitorable going forward will be Prestige's ability to achieve significant pre-leasing in ongoing and upcoming annuity assets. We retain our target price of ₹611 per share but have cut our rating to HOLD from ADD.

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.

Phoenix Mills (PML) has released its FY23 annual report, highlighting the company's strong execution capabilities, significant business growth in new malls, and the healthy growth trajectory of the Indian retail sector. PML's retail portfolio has doubled in the last five years, and its two new malls in Indore and Ahmedabad are already generating strong sales. The company is well-positioned to benefit from the long-term growth of the Indian retail sector.

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.

ACC Ltd., a leading Indian cement company, has posted strong results for the first quarter of fiscal year 2024. Revenue, EBITDA, and PAT grew by 16.4%, 80.9%, and 105% YoY, respectively. The company's strong performance was driven by improved operational efficiency and higher sales volume. ACC's management expects the positive demand trend in the cement industry to continue in the coming quarters. The company is also targeting to grow its sales volume by 8-10% in FY24.