Hot Stocks: Brokerage view on CG Consumer, Indiabulls Housing, PVR Inox and ITC


Brokerage firm Nomura downgraded Crompton Greaves Consumer Electrical to neutral while Morgan Stanley remained underweight on Indiabulls Housing, and overweight on ITC. ICICI Securities has a buy rating on PVR Inox.

We have collated a list of recommendations from top brokerage firms from ET NOW and other sources:

Nomura on Crompton Greaves Consumer Electricals: Neutral| Target Rs 338
Nomura downgraded Crompton Greaves Consumer Electricals to neutral from buy earlier and also reduced the target price to Rs 338 from Rs 352.

The downgrade was largely on account of the 1Q margins miss. Going forward, investments are likely to drive growth that will likely keep margins low. Valuations are in a fair value zone.

Morgan Stanley on Indiabulls Housing: Underweight| Target Rs 103
Morgan Stanley remained underweight on Indiabulls Housing but raised the target price to Rs 103 from Rs 90 earlier.

Pre-provisioning operating profit (PPOP) miss of 21% was on lower total income and higher operating costs. Lower PPOP was offset by recoveries-led credit cost reversals.

The global investment bank raised forecasts by 5-6% and the target by about 14%. The company is taking the right steps, however, ROE will likely take longer to recover.

Morgan Stanley on ITC: Overweight| Target Rs 493
Morgan Stanley maintained an overweight rating on ITC and raised the target price to Rs 493 from Rs 474 earlier.

The company reported another good quarter of growth. Earnings augur well for continued stock outperformance.

All business segments performed better than expected on EBIT growth. The indicative timeline for listing of ITC hotels is ~15 months ie Nov’24.

ICICI Securities on PVR Inox: Buy| Target Rs 2240
ICICI Securities maintained a buy rating on PVR Inox with a target price of Rs 2240. PVR Inox performance update states that they have achieved the ‘highest ever daily and weekend admissions and box office’.

On 13th Aug’23, PVR Inox had 1.28mn admits and 3.36mn admits over Friday to Sunday with GBO revenue of over Rs 1bn.

“We think this implies an occupancy of 72-75% on Sunday and 63-65% over 3 days. We have been bullish on the recovery of the movie exhibition business given the strong pipeline since Q2FY24,” said the note.

“However, the current performance is a positive surprise. Merger synergies have also started playing out. Given the high operating leverage that plays out in this business, we believe earnings upgrades are necessary,” the note added.

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


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