Brokerage firms- global and domestic initiated coverage on several stocks ahead of Q4 results. These include Aditya Birla Capital, Jindal Steel & Power and DMart with a targeted upside of up to 17% as per brokerages. Here’s a look at 5 stocks on which brokerages initiated coverage:
Aditya Birla Capital: Macquarie initiated coverage on Aditya Birla Capital with an ‘Outperform’ rating and set a target price of ₹230 on the stock. The brokerage noted, “Initiate at Outperform given the potential for robust loan/VNB growth and ROA/VNB margin expansion driven by access to cheaper funding, leveraging group ecosystem, strong SME growth, and improvement in protection mix. Implied valuations at 1.5x FY25E P/BV (ABFL) & 1.5x FY25E P/EV (ABSLI) are cheap.”
DMart: CLSA initiated coverage on DMart with a ‘Buy’ rating and set a target price of ₹5,107 as it cited that “long-term opportunity in DMart remains intact, especially with the stock underperforming the broader indices by 45% since it made a peak in November 2021.”
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Jindal Steel and Power: Anand Rathi initiated coverage on Jindal Steel and Power with a ‘Buy’ rating with a target price of ₹1,070. It said, “Robust demand for steel in India is expected to persist. Considering the company’s strong focus on capacity addition, raw-material integration, cost-control initiatives, increase in share of VAPs and strong control of its balance sheet, we initiate coverage on it, with a Buy rating and a TP of Rs1,070, 6.5x FY26e EV/EBITDA.”
DOMS Industries: ICICI Securities initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹1,825. It said, “We expect DOMS to strengthen its position by entering into adjacent business/product categories, expansion of manufacturing capabilities, and higher exports. We model DOMS to report revenue/PAT CAGR of 24.4%/29% over FY24-26E.”
India Shelter: Kotak Institutional Equities initiated coverage on India Shelter with a ‘Buy’ rating putting a target price of ₹685 as it said, “Strong visibility of near-term growth, long runway in affordable housing finance, geographically diversified loan book and superior yields in its LAP/selfemployed heavy loan book—though offset by lower business leverage—are key drivers.”
