Brokerage Views: Emkay On Nestle, Motilal Oswal On Prestige Estates And More

Top brokerages, from Citi Research to Motilal Oswal Financial Services Ltd., have taken interesting stock calls on a variety of sectors on Wednesday.Emkay Global Financial Services has initiated coverage on Nestle, while Motilal Oswal has reiterated its 'buy' on APL Apollo Tubes.India's benchmark stock indices snapped their three-day rally to close marginally lower on Tuesday on likely profit booking, after indices hit a fresh record high in the previous session.Information technology stocks came under pressure as hope of an earlier rate cut by the Fed waned following the release of economic data in the US. Mid- and small-cap banks led outperformance in the broader indices.The NSE Nifty 50 ended 8.70 points, or 0.04%, lower at 22,453.30, while the S&P BSE Sensex fell 110.64 points, or 0.15%, to close at 73,903.91.We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Wednesday morning..Emkay Global Financial Services initiates coverage on Nestle with a 'reduce' rating and a target price of Rs 2,650 apiece.Current capex cycle to address company's segment demand more affectively. Penetration-led volume growth is helping it outperform sector volume growth.Strong pricing power is added advantage and a likely factor for faster margin recoup.Sees stock re-rating restrained by pressure on ROE/ROCE aheadAny consumption slowdown in the formal sector would be a downside riskCapability of utilising enhanced capacity and driving innovation would be an upside risk.World Bank Projects Indian Economy To Grow At 7.5% In 2024.Motilal Oswal Financial Services reiterates 'buy' on Prestige Estates, with a target price of Rs 1,535 apiece.Expansion in new markets to sustain pre-sales growth momentum.Rental portfolio: Mumbai assets shaping up well.To start generating positive free cash flow from FY26.Platform deal with Abu Dhabi Investment Authority and Kotak AIF can further release cash flow burden.Monetising hospitality portfolio can lead to value unlocking..Citi retained a 'buy' on MakeMyTrip, but reduced target price to $85 apiece. The stock is up 50% so far this year.Travel sentiment remains buoyant especially across air and hotelGovernment focus on promoting domestic travel & tourismFavorable supply-side dynamics for domestic/international leisure travelWell positioned given its leadership, execution track record and growth initiativesMay continue to hold their A&P spending at 5% of GBV in the near/medium term.MakeMyTrip, STB Ink Partnership To Promote Singapore To Indian Travellers.Systematic initiates coverage on Shailey Engineering with 'buy' rating and a target price Rs 720 apiece.Leading exporter of high-precision engineered plastic productsWide customer base across healthcare, consumer, appliances, auto and lightingStrong order book and guidance received from key customersExpect 19%/29%/46% CAGR in revenue/ Ebitda/PAT over FY23-26E.Motilal Oswal reiterate 'buy' on APL Apollo Tubes with a target price of Rs 1,800 apiece, implying an upside 14%.Ended FY24 with a healthy sales volume growth of 15%Despite subdued volume growth in H2FY24Based on channel checks, demand scenario to remain weak Slowdown in construction activity, delay in government projects key factorsDealers are operating with minimum inventory level Global foray with manufacturing plant commissioned in DubaiPlans to open warehouses in Liverpool, Melbourne, Antwerp, and HoustonDemand recovery post Q2FY25, expect restocking from dealers Reduce FY25/FY26 EPS estimates by 4% each; FY26E EPS at 32x.Nomura maintains 'reduce' rating on M&M Financial with a target price of Rs 240 apiece.March 2024 update reflects tepid growth of 9% year-on-year4QFY24, disbursements stood at Rs 15,300 crore, growing 11% year-on-year but declining 1% qoqDisbursements for FY24 registered growth of 13% year-on-year at Rs 56,200 crore.Business asset growth remained healthy at 24% year-on-year in March 2024.Improvement in asset quality comparatively softer than previous years.Improvement in asset quality may be driven by elevated write-offs during the quarter.Credit cost likely staying elevated. To achieve guidance for FY24 (1.5%-1.7%), credit cost to be at 0.9% in 4Q24.Emkay retains 'buy' rating on Motherson Sumi Wiring India, with a target price of Rs 80 apiece, implying an upside of 16%.Company is making strong breakthrough in SUV-focused OEMs, including for EVsSetting up a new facility within its existing Pune plantHigher localisation, scale benefits to help improve profitabilityOffers a proxy play on PVs; major beneficiary of EV-shift.Jefferies reiterates 'buy on ICICI Lombard. Hikes target price to Rs 1,950 apiece from Rs 1,730 apiece.Strengthening presence in health insurance - digital and agency networkExpect retail health segment ramp-up in the next 2-3 yearsCompetitive intensity in the sector becoming more rationalEasing competition allowing market share gains in Motor-ODExpect 16% premium CAGR in FY24-27Lower combined, raise earnings estimates by 2-4% in FY25-26

Brokerage Views: Emkay On Nestle, Motilal Oswal On Prestige Estates And More

We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are all the top calls you need to know this Wednesday morning.

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