Amid the ongoing result season, select brokerage firms have come out with research reports on a handful of stocks namely Aptus Value Housing Finance, InterGlobe Aviation (IndiGo), Titan Company and Aditya Birla Capital. All of these brokerage firms have a 'buy' ratings for them by the respective brokerages namely Axis Securities, Nuvama Institutional Equities, JM Financial and Motilal Oswal respectively. Here's what brokerages said about these counters
IndiGo reported Q1FY24 EBITDA 24 per cent above estimates. Growth was attributable to increase in capacity and improvement in PLFs while yields remained flat. PAX carried was up 30%. CASK fell 18% YoY due to 13% decline in fuel cost and forex gain, said Nuvama Institutional Equities
IndiGo intends on upping capacity by 25% YoY Q2FY24 and more-than doubling its fleet by 500 aircraft by FY30. Yields are likely to weaken as Q2 remains a seasonally weak quarter further impacted by rise in crude prices, InterGlobe Aviation was added with a 'buy' rating and a target price of Rs 2,907
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Titan’s June quarter growth was achieved at the cost of short-term margin - a choice exercised by the business to tide over issues that emanated due to gold-price volatility and consequently, weaker consumer sentiments. A rather generous gold-exchange offer to attract buyers, however, caused a significant erosion in gross margin and led to lower profit, said JM Financial
"What is comforting is that the issues aren’t structural in nature and the impact, therefore, should not be long-lasting, we believe; management retaining its 12-13% margin guidance is a testimony to this. Demand seems rather resilient thus far - July growth appears to be close to the 1Q range," JM Financial added with a target price of Rs 3,070 for Titan Company
ABCL has exhibited a significant improvement in operational metrics across all business segments in 1QFY24. With the worst in asset quality behind, FY24 will see an uptick in growth, lower credit costs, and better return ratios. The asset management business is likely to churn out profitability, driven by an improvement in revenue and cost rationalisation, said Motilal Oswal
"The drag on consolidated PAT from other segments such as Health Insurance will fall, improving the overall profitability. We expect a consolidated PAT CAGR of 42% over FY23-25. The thrust on cross selling, investments in digital, and leveraging ‘One ABC’ will lead to healthy return ratios," Motilal Oswal added while reiterating a 'buy' with a target price of Rs 220 for AB Capital
The company will keep its cost structure lean and despite the branch expansion exercise, Aptus will look to maintain the cost-asset ratio at 2.6-2.65% in FY24. Credit costs are expected to be contained at 20-25 bps, as the company carries a management overlay of Rs 33 crore, which will be utilised over the next few quarters, said Axis Securities
“We remain confident in Aptus’ ability to deliver consistently strong growth with a focus on strengthening leadership positions in existing core geographies and gradual ramp-up in business in the new geographies and to deliver best-in-class RoA/RoE over the medium term,” added Axis Securities with a buy rating a target price of Rs 330 for Aptus Value Housing Finance
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