Hot Stocks: Brokerage view on Sunteck Realty, L&T, UltraTech Cement, HUL & ITC

Brokerage firm Jefferies maintained a buy rating on Sunteck Realty. Credit Suisse is bullish on L&T, UltraTech Cement, and Cummins India while it maintains an underperform stance on Container Corp, ABB India, and Voltas.

CLSA continues to like HUL, ITC, and Dabur India while it has maintained its sell rating on Britannia Industries and Nestle India on account of high valuations.

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

Jefferies on Sunteck Realty: Buy| Target Rs 415
Jefferies maintained a buy rating on Sunteck Realty with a target price of Rs 415.

“Weak BKC performance and some project delays led to the cuts. A 25% growth guidance for FY24 looks achievable as cash flow remains strong,” it said.

Credit Suisse on Capital Goods, L&T, UltraTech Cement, and Cummins India:
Credit Suisse maintained an underperform rating on Container Corp, ABB India.

Container Corporation: “Weak Exim cycle, losing market share, lack of any evidence of road-to-rail shift so far, and lack of near-term visibility on divestment catalyst,” the brokerage said.

ABB India: According to Credit Suisse, there are high valuations pricing in a 20-year CAGR of >20% at 13%+ EBITDA margin

Voltas: “The market share and margin losses have given leadership status in a segment with prevailing tough competition,” it said

Credit Suisse prefers L&T, UltraTech Cement, and Cummins India.

L&T: Late cycle beneficiary and has still-attractive valuations, it said.

UltraTech Cement: “Partly cyclical volume growth, commodities pullback particularly pet-coke and reasonable valuation,” the brokerage said.

Cummins India: Attractive valuations particularly in the context of peers with modest cyclical play, it added.

CLSA on Consumer Goods: Like HUL, ITC and Dabur India
CLSA likes HUL, ITC, and Dabur India in the Consumer Goods segment and has a sell rating on Britannia Industries and Nestle India on high valuations.

The global investment bank expects operating margins to show only a modest improvement in FY24.

“The A&P spend is still not at normal levels. Investors should watch out for Rural demand revival key; El Nino presents a key risk,” it said.

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