| Current market price | Rs 603 |
|---|---|
| Target price | Rs 714 |
| Upside | 18.00% |
Broking firm, Motilal Oswal has said to buy the stock of Dabur India with an upside target of 18% on the stock. According to the broking firm, the management's confidence remains double-digit sales growth prospects for FY22, despite a challenging base for the Healthcare business in the remaining quarters. It also has a target of maintaining or growing FY22 EBITDA margin YoY, despite the ongoing rise in material costs, is encouraging.
"Dabur has delivered double-digit topline growth in two of the past three years, unlike most peers, and is likely to do so again in FY22.
New products now contribute 5-6% of sales. Earnings growth, after the ongoing investment in these initiatives, will be even stronger than topline growth after completion of the investment phase for the above mentioned initiatives (and a temporary reset on account of a step up in taxation levels to 22% in FY22 from 17.6% in FY21). We maintain our buy rating," the brokerage has said.
Brokerage firm, Motilal Oswal also has a buy call on the stock of Castrol, with a 22% upside target from the current levels.
| Current market price | Rs 140 |
|---|---|
| Target price | Rs 170 |
| Upside | 17.00% |
According to the brokerage firm, the management guided that demand momentum has picked up since June'21 and is expected to continue (although a potential third wave may be a critical development).
"Castrol has always enjoyed its brand equity heritage, and we believe it would be able to secure its profitability with a better product mix, cost control, and the launch of advanced products with better realization. We value the stock at 20 timesJune'23E EPS to arrive at target price of Rs 170. Maintain Buy," the brokerage has said.
Motilal Oswal has a neutral call on the stock of Punjab National Bank, but, sees an upside of 11% on the stock from current levels.
| Current market price | Rs 40.40 |
|---|---|
| Target price | Rs 45 |
| Upside | 11.00% |
Punjab National Bank reported a healthy performance, supported by a pick-up in net interest income, higher other income, and lower operational expenditure, even as provisions stood stable QoQ.
"Business growth remains muted, however margin witnessed a sequential uptick. The bank expects growth to pick up, led by RAM segments, while the Corporate book too would undergo a gradual recovery. Asset quality was largely stable, despite higher slippages, supported by recoveries and upgrades. SMA 1 and 2 book stands elevated at 3.9% of loans, while restructured book, at 2.02% of loans (expect a further restructuring of Rs 15-20 billion), keeps us watchful over the near term. We estimate a RoA/RoE of 0.6%/8.8% by FY23E. We resume coverage with a Neutral rating and a target of Rs 45 (0.6 times FY23E ABV)," the brokerage has said.
The brokerage is also bullish on the stock of Bharti Airtel. The brokerage says that Africa will remain the underdog and the business saw strong 9% EBITDA growth QoQ, backed by all-round growth in Data and Airtel Money consistently over the last few quarters. It generates Rs 400-500m FCF and remains a business that exhibits low leverage and healthy growth. Motilal Oswal says that despite robust data traffic volumes of 108b GB (18.9 GB/user), data traffic/subscribers are 50% that of RJio.
According to Motilal Oswal the EBITDA has been 30% higher for the last year, highlighting that the healthy subs/ARPU equation is showing gains. All this without any tariff hikes, the brokerage has said. It has a buy on the stock, but has not indicated any target prices for the same.
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