Stock brokerages including Motilal Oswal, Axis Securities, Sharekhan, and Anand Rathi have come out with research reports on select stocks namely Zee Entertainment, Trent, Tata Power, and MapMyIndia. Here's what brokerages said about these counters.
Brokerage firm Motilal Oswal has a ‘Buy’ rating on Zee Entertainment stock with a target price of Rs 280. According to the brokerage, the gradual recovery in ad revenue with improving spends from the FMCG segment appears to be a silver lining. Recovery could be seen from 2HFY24 onwards with the onset of the festive season.
According to analysts at Motilal Oswal, the continued investments within the digital (Zee5) segment could drag profitability, given the segment remains in an investment mode. “We believe that the valuations of the (SPNI-ZEE) merged entity do not capture the strong opportunity ahead. However, any certainty around merger timelines would remain a key monitorable,” they said.
Axis Securities has a ‘Buy’ rating on Trent stock with a target price of Rs 2,000 per share. The brokerage believes that Trent’s overall results in terms of revenue growth are excellent, and expects the strong performance to continue in the coming quarters
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“We expect strong sales growth to continue in the coming quarters as Trent focuses on rapid store expansion and continued assortment renewal, which will result in higher overall footfall. In addition, the improvement in the earnings profile across all formats, the reduction in losses at Star Bazaar, and the improvement in traction at Inditex JV are also positive signs for the company” said analysts at Axis Securities.
Brokerage firm Sharekhan has a ‘buy’ rating on Tata Power stock with a target price of Rs 265 per share. According to the brokerage, Tata Power has a well-planned strategy to shift towards clean energy. Its 4GW solar cell and module plant is on track, and would reduce cost and improve margin for solar EPC business.
"Tata Power's focus on business restructuring and focus on high growth RE business and entry into power transmission would play a crucial role for sustained earnings growth and improved earnings quality. In addition, the management’s business restructuring plans to increase the share of high-growth RE business would drive sustained improvement in ESG scores. Hence, we maintain a Buy on Tata Power with a revised PT of Rs 265," said Sharekhan in its report.
Brokerage firm Anand Rathi has a ‘Buy’ rating on MapMyIndia stock with a target price of Rs 1,700 per share. The brokerage believes that the company’s B2B and B2B2C focus makes it less visible vs B2C focussed Google map. Yet, its revenue model based on fees charged per period (on per vehicle, per asset, per transaction, per use case, per user) is superior to Google (only advertisement based).
"MapMyIndia has clear advantages, not easily replicable, and which prove to be high barriers to enter the map and navigation business in India. Its diverse use of maps across a variety of platforms, products and applications is much more than those of its peers, because of this 90% of its larger customers generating more than 80% of revenue have been retained over the years," said Anand Rathi in its report.
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