Hot Stocks: Brokerage view on Bharti Hexacom, Go Digit, PI Industries and Dr Reddy’s
Jefferies maintained an underperform rating on Dr Reddy’s Laboratories, Equirus recommended a Long on PI Industries, Morgan Stanley initiated coverage on Go Digit with an Equal Weight rating and Jefferies has a hold rating on Bharti Hexacom.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Jefferies on Dr Reddy’s Laboratories: Underperform | Target Rs 5010
Jefferies maintained an underperform rating on Dr Reddy’s Laboratories with a target price of Rs 5,010. Growth of acquired brands has remained stagnant in recent years and will require upfront investments.
The potential impact of synergies from the acquired portfolio should start reflecting only over FY27-28.
The acquisition is for GBP500m implying 2.3x sales, ~9x EV-Ebitda on CY23 numbers.
Dr Reddy expects the deal to be margin accretive and remains confident of achieving 25% Ebitda margin on a consolidated basis.
Equirus on PI Industries: Long | Target Rs 5,500
Equirus maintained a Long rating on PI Industries with a target price of Rs 5,500. • With this acquisition of Plant Health Care (PHC), the global investment bank believes that PI would also be able to transfer technology to manufacture biological products with a TAM of more than US$ 10bn.
PHC aims to achieve $30 mn in sales by 2025E, with a 3-5-year target of $110 mn. The acquisition will also enable Pl to develop capabilities to manufacture other biological products currently not manufactured in India.
The acquisition should give it an edge over
