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Larsen and Toubro

Broking firm, Emkay Global Financial Services has a buy on the stock of Larsen and Toubro with a price target of Rs 1,770 on the stock.

"Strong order book, better prospects and great execution capabilities all point to L&T (ex IT/Fin/Dev. Projects) returning to mid-teen earnings growth. We expect 15% Earnings Per Share CAGR over FY21-FY24E - similar to FY15-FY20. We expect centre and state capex to see a rebound after Covid second wave, similar to what happened last year," the broking firm has said.

According to Emkay's analysis of large projects in Larsen & Toubro's order book has not revealed any major red flag from the perspective of execution.

"We believe that once the second Covid wave recedes, L&T will be able to clock double-digit sales growth over the medium term. Management remains confident on maintaining margin in the near term as well.

"We assume coverage on L&T with a Buy rating and target of Rs 1,770 (June'22E). Improving core ROIC, strong & clean order book, increased opportunities in Renewables, Steel and Cement apart from Rail, Expressways and Water bode well for future trajectory," the broking firm has said.

 

Bharat Forge

Broking firm, Motilal Oswal has a buy rating on the stock of Bharat Forge, with a price target of Rs 850 on the stock.

"We raise our consolidated EPS by 17%/18% for FY22E/FY23E, driven by revenue upgrades due to a strong cyclical recovery. We maintain our Buy rating with a target price of of Rs 850 per share (28x Mar'23E EPS).

According to Motilal Oswal all of the company's businesses are witnessing a sharp cyclical recovery.

"This, coupled with its focus on creating new revenue pools in defense and e-Mobility, can further lead to de-risking of the business. We estimate consolidated revenue/EBITDA/PAT to grow at a 31%/68%/302% CAGR (FY21-23E). The stock trades at 40.4x/24.6 times FY22E/FY23E consolidated EPS. We maintain our Buy rating with a target price of Rs 850 per share," the broking firm has said

The shares of Bharat Forge were last seen trading at Rs 749 on the NSE.

Jubilant Pharmova

Jubilant Pharmova is a stock that has an upside target of 15% from current levels according to broking firm Motilal Oswal.

"We have reduced our EPS estimate by 5%/4% for FY22/FY23, factoring in a) the ongoing COVID situation impacting the near-term off-take of Radiopharma and b) delay in the USFDA resolution and pricing pressure in the Generics segment. Excluding the LSI business, we expect a 14% EBITDA CAGR over FY21-23, led by a 7%/14% sales CAGR in the Generics/Specialty segment and better operating leverage.

Adjusted for COVID-related CDMO contracts, we expect an 11% sales CAGR in CDMO over FY21-23. We value Jubilant Pharmova at 12-months forward EV/EBITDA of 9 times, factoring in a strong order book in CDMO and strong franchise in the Radiopharma segment, and arrive at target of Rs 960. We remain positive on Jubliant Pharmova as it has a robust foundation in place to drive the CDMO business, a healthy product pipeline in the Radiopharma/Generics segment, and attractive valuations. Maintain Buy," the broking firm has said.

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ITC

ITC is another stock being recommended by broking firm Motilal Oswal. The firm has set a solid target of Rs 265 on the stock, against the current market price of Rs 214.

"We expect Q1 performance to be impacted by lockdowns, hence we cut FY22E/23E EPS by 7.6%/2.8%. The overall recovery seems on track and we expect better growth on full reopening. Valuations at 15 times are in line with global peers and can offer upsides with improving growth. Retain Buy with a target price of Rs 265 based on 18 times Jun'23E Earnings Per Share," the broking firm has said.

ITC is a leading player in the tobacco, FMCG, hotels and paper industry.

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Disclaimer

The stocks mentioned above are taken from brokerage reports. We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in