Hot Stocks: Brokerages on Gail, IOC, UPL and Sun Pharma post Q3 results

Brokerage firm ICICIdirect has a buy rating on and post Q3 results. It has a hold rating on (). Motilal maintained its neutral stance on UPL post December quarter results.

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

ICICIdirect on Sun Pharma: Buy | Target Rs 1210

ICICIdirect maintained its buy rating on Sun Pharma post December quarter results with a 12-month target price of Rs 1210.

Sun Pharma is the world’s fourth largest generics/specialty pharma company with 43 manufacturing sites at its disposal addressing segments like specialty products, branded generics, complex generics, pure generics and APIs.

“We maintain BUY as 1) the Global specialty portfolio continues to maintain momentum, 2) Growth in India formulations from new launches and field force expansion and 3) Calibrated cost approach including R&D spends,” the brokerage said.

ICICIdirect on Gail India: Buy| Target Rs 115

ICICIdirect maintained its buy rating on Gail India post December quarter results with a 12-month target price of Rs 115.

Gail India is a gas utility company with various business segments such as gas transmission & trading, LPG, LLH and petrochemicals.

“Gas transmission and trading volumes are likely to increase in FY24E with supplies coming from new sources. Petchem and LPG/LLH performance is expected to improve, going ahead, with a decline in gas prices,” said ICICIdirect.

The domestic brokerage firm changed the rating on the stock from hold to buy.

ICICIdirect on IOC: Hold | Target Rs 90

ICICIdirect maintained its hold rating on IOC post December quarter results with a 12-month target price of Rs 90.

IOC is India’s largest refining & marketing company with an installed refining capacity of ~70 MMT. “GRMs are likely to remain strong amid an increase in petrol cracks,” the brokerage said.

“The company has not passed on higher crude oil costs to customers, but marketing losses are likely to narrow down in the near term. We maintain our HOLD rating on the stock,” it added.

on UPL: Neutral | Target Rs 835

Motilal Oswal maintained a neutral stance on UPL post December quarter results with a 12-month target price of Rs 835.

UPL reported revenue growth of 21% YoY, driven primarily by an increase in price realization (up 13% YoY). Volumes inched up 1% YoY.

All other key geographies registered strong double-digit sales growth, except for Europe (up 3% YoY)

“We largely maintain our FY23E/FY24E/FY25E earnings. We reiterate our Neutral rating on the stock with a target of Rs 835 (premised on 9x Dec’FY24E P/E; in line with a three-year average, one-year forward P/E),” said the note.

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