Pick of the week (Jan 31)

KEI Industries — Buy
Recommendation by Anand Rathi Share and Stock Brokers

Thus, we yet believe in its sustainable growth prospects and retain our Buy rating, with a Rs 586 target (14x FY23e P/E, closer to the five-year mean), earlier Rs 485. The rising retail share and leaner balance sheet are keys to a re-rating in the scrip.

InterGlobe Aviation — Add

MS Education Academy

Recommendation by Centrum Broking

Yields showing improvement mid Jan-21 onward with guidance of domestic ASK at 80% of PY levels in Q4FY21 and strong traffic pick-up Feb onward. Maintain Add with PT of Rs1,756.

Laurus Labs — Buy

With continuity of robust growth across segments, we expect the growth momentum to continue in the medium to long term. Hence, we maintain our Buy rating on the stock with a target price of Rs 424 per share.

TVS Motor Company — Hold

Recommendation by Emkay Global Financial Services

The stock trades at a core P/E of 27x/20x on FY22E/23E. We upgrade the rating to Hold with a revised TP to Rs 570 (Rs 398 earlier), based on 22x FY23E P/E (20x earlier) and value of TVS credit services at Rs 29/share. We prefer Hero MotoCorp and Bajaj Auto over TVS Motors, owing to favourable risk-reward.

Maruti Suzuki — Buy

Recommendation by Emkay Global Financial Services

We raise FY21-23E EPS by 8-12%, mainly due to higher volume assumptions. Retain Buy with a TP of Rs 9,000 (Rs 8,216 earlier), based on 25x FY23E. The target multiple implies core P/E of 30x and net cash/share of Rs 1,469.

Shriram Transport Finance Company

Recommendation by Emkay Global Financial Services

We raise our FY22/23E earnings by 26.2%/23.3%. SHTF remains one of the top picks from our NBFC coverage. We maintain our Buy rating (OW in EAP) on the stock with a revised TP of Rs1,455 (Rs 800 earlier), corresponding to 1.4x P/Adj Book for FY23E.

Quess Corp — Buy

Recommendation by Motilal Oswal Institutional Equities

We welcome corrective steps undertaken by the new management to address some investor concerns. The improvement in cash conversion/RoE should drive a rerating. Our TP implies 17x FY23E EPS.

Colgate — Buy

Recommendation by Motilal Oswal Institutional Equities

Inexpensive valuations and the potential benefits of a strong rural presence have led us to maintain our Buy rating on the stock. This is even as we await traction on new products, market share gains, and any announcement related to entry into newer categories — which would elevate topline growth above the 2.6% CAGR levels and earnings growth above the 7.9% CAGR levels of the last five years. With a target multiple of 40x FY23E, we arrive at TP of INR 1,810 — a 16% upside to CMP.

Symphony — Add

Recommendation by HDFC Securities

We have recently upgraded Symphony to ADD on the expectation of strong domestic recovery in the upcoming season and operational improvement for subsidiaries. We maintain EPS estimates for FY22/FY23. We value Symphony at 35x P/E on Mar-23E EPS and derive a TP of Rs 1,115. Maintain ADD.

SBI Life Insurance — Buy

Recommendation by HDFC Securities

We retain our BUY rating on SBILIFE with an increased TP of Rs 1,170 (Sep-22E EV + 26.3x Sep-22E VNB). The stock is currently trading at FY22/23E P/EV of 2.4/2.1x and P/VNB of 20.1/15.6x. Lower growth, renewals, and protection share are key risks.

Disclaimer: Views and recommendations given are those of brokerages and analysts and do not represent those of IANS. Users should check with certified experts before taking any investment decision. IANS has no financial liability whatsoever to any user on account of the use of information provided.


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