Hot Stocks: Brokerages on ONGC, Godrej Consumer, M&M, Eicher Motors and UltraTech Cement

Emkay has a buy rating on Eicher Motors post March quarter results.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Morgan Stanley on ONGC: Overweight| Target Rs 218
Morgan Stanley maintained an overweight rating on ONGC with a target price of Rs 218. The company has made two new discoveries in one of the more prolific, but mature blocks in Mumbai offshore.

The key challenge for ONGC has been monetisation of its ~18 years of 2P reserve life, and any new discoveries and increase in gas production from KG98/2 should help arrest the slide and support 4.4% volume CAGR over the next three years, it said.

CLSA on Godrej Consumer: Underperform| Target Rs 1000
CLSA maintained an underperform rating on Godrej Consumer with a target price of Rs 1000. Margin improvement is playing out and category development is crucial, said CLSA.

Transformation efforts started paying off in FY23, and the outlook is getting better for FY24, it added.CLSA on Auto and Cement: Prefer M&M and UltraTech Cement
Signs of rural uptick are visible, making auto and cement a preferable space, CLSA said. It prefers large-cap names like M&M as well as UltraTech Cement.

The correlation of monsoons to tractor volumes and cement is limited. “Preferred largecap picks in these sectors are Mahindra & Mahindra and Ultratech Cement,” said the note.

Emkay on Eicher Motors: Buy| Target Rs 4000
Emkay maintained its buy rating on Eicher Motors with a target price of Rs 4000. For EIM, structural domestic franchise revival and ramp-up in exports (post many years of seeding), along with a better mix and softer commodity prices would drive ~25% FY23-25E EPS CAGR.

“We upgrade FY24E EPS by ~11% and retain BUY, with ~18% upside; our SOTP-based TP at Rs4,000/sh (Rs3,590 earlier) is based on 25x PER/20x PER for the motorcycle/CV business, on FY25 estimates,” said the note.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of Economic Times)