We have collated a list of recommendations from top brokerage firms:
Ashika Stock Broking on Mirza International: Buy| Target Rs 370| LTP Rs 311| Upside 19%
Ashika Stock Broking maintained its buy rating on Mirza International with a target price of Rs 370 in the next 12 months.
As COVID cases have started waning, mobility has increased since March of 2022 and that has increased the use of footwear.
Offices and schools have opened, which creates an incremental demand for shoes and that benefits the shoe manufacturers, the brokerage said.
After growing in metro cities, management has now shifted its focus to tier 2 & 3 cities where management sensed larger growth opportunities.
“We recommend our investors to BUY the scrip with a target of Rs 370 from 12 months investment perspective. Currently, the scrip is valued at a P/E multiple of 24.1X on FY24E EPS,” said the note.
Motilal Oswal on Gland Pharma: Buy| LTP Rs 1777| Target Rs 2470| Upside 39%
Motilal Oswal maintained its buy rating on Gland Pharma with a target price of Rs 2470. Gland Pharma (GLAND) entered into a Put agreement to acquire Cenexi group (Cenexi), thereby enhancing its CDMO offerings in the Europe market, said the brokerage.
“Considering equity value/enterprise value of EUR120m/EUR230m, respectively, the EV/sales is about ~1.2x CY21/CY22E. The EV/EBITDA is about 10x CY21 and 8x CY22E. Given the generics product portfolio, the valuation is fair and in line with peers in the space,” the brokerage said.
It raised the FY24 EPS estimate by 3% to factor in additional business from Cenex.
PhillipCapital on Agro Tech Foods: Buy| LTP Rs 816| Target Rs 1000| Upside 22%
Phillip Capital maintained its buy rating on Agro Tech Foods with a target price of Rs 1000. “We believe the high-margin and differentiated foods business has become meaningful, i.e., reached an inflection point,” said the note.
We expect EBITDA margin to move up to c.8.4% in FY25 from 5.8% in FY22, based on the increased salience of the foods business; note that food commands higher margins at +40% vs. edible oil (20-25%), it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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