Top Stocks on Brokers’ Radar for May 2023
Goldman Sachs: Buy Recommendation on Trent with Target Price of Rs 6,970
Goldman Sachs has provided a ‘buy’ recommendation on Trent, with a target price set at Rs 6,970. Analysts believe the company’s margins exceeded expectations. Despite a weak gross margin, which might indicate higher discounting during the end-of-season sales, operating costs were significantly lower than anticipated, leading to an operating margin expansion. Additionally, unusually low operating costs in the January-March quarter were noted. The management also emphasized that the full-year profitability is more representative of the business.
Motilal Oswal Financial Services: Buy Rating on Varun Beverages with Target Price of Rs 665
Motilal Oswal Financial Services has given a ‘buy’ rating on Varun Beverages, with a target price of Rs 665. Analysts believe the company is maintaining its volume growth trajectory in both the domestic and international markets. The integration in South Africa is progressing well, and the management is confident about its double-digit growth guidance, driven by industry tailwinds and expansion into new markets via the addition of visi-coolers.
Elara Securities India: Reiterates ‘Accumulate’ Call on Ambuja Cements with Target Price of Rs 616
Elara Securities India has maintained its ‘accumulate’ call on Ambuja Cements, with the target price unchanged at Rs 616. Analysts believe the cement major is well-positioned for healthy volume growth, driven by better demand, ramp-up in acquired assets, and completion of ongoing capacity expansions. While recent price increases will support near-term margins, continued cost-saving initiatives will help manage margins in the medium term. Key risks include sub-par demand, weak cement prices, and a sharp rise in fuel prices.
InCred Equities: ‘Add’ Recommendation on Aditya Birla Sunlife AMC with Target Price of Rs 800
InCred Equities has maintained its ‘add’ recommendation on Aditya Birla Sunlife AMC, with the target price at Rs 800 but removed it from its high-conviction stocks list. Analysts believe the company is taking the right steps to improve market share, but they see competition intensifying and volatile capital markets weighing on equity fund market share movement and SIP inflow. Key downside risks include low traction in new funds and a higher employee attrition rate.
Emkay Global Financial Services: Buy Rating on Adani Green with Target Price of Rs 1,500
Emkay Global Financial Services has given a ‘buy’ rating on Adani Green, with a target price of Rs 1,500. Analysts noted an uptick in operational capacity and improvement in Capacity Utilization Factor, leading to high growth in power sales. Book realization was stable on a quarterly basis, and the management highlighted that the rains impacted Khavda project work in FY25, slowing capacity addition to 3.3GW. However, FY26 guidance is healthy at 5GW, with 1GW likely to be commissioned within a month.
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Reference : https://timesofindia.indiatimes.com/business/india-business/ambuja-cements-adani-green-more-top-stocks-on-brokers-radar-for-may-2-goldman-sachs-trent-motilal-oswal-financial-services-varun-beverages-elara-securities-india-incred-equities-aditya-birla-sunlife-amc-emkay-global-financial-services/articleshow/120807543.cms
