Shares of JMC Projects (India) and Aditya Birla Capital, where brokerages recently came up with their calls, were trading opposite on Wednesday. JMC projects have risen more than 10%, while Aditya Birla Capital is dealing with negative bias. At 1.30 pm, Construction Scrip JMC Projects is trading on the BSE with a gain of 10% to Rs 87.30 per share. Similarly, Aditya Birla Capital fell nearly 101.20 on the BSE.
Brokerages saw a 79% rise in the closing price on Tuesday, when the brokerage brought their report.
JMC Project (JMC)
Due to the bullishness in this construction stock, brokerage firm HDFC Securities has maintained a buy rating on the counter with a target price of Rs 142 per share, which translates into an upward trend of around 79%. According to the brokerage, the revenue of the JMC project was a beat at all levels. EBITDA margin has been muted at 8.5%, affected by high commodity and supply chain issues. “FY22 Order Inflow (OI) was INR 101bn, took Order Book (OB) to INR 171bn. We maintain BUY with revised target price of INR 142 (11x Mar-24E EPS). We have reduced our FY23 / 24 EPS ( 10.9) / (17.2)% higher product price factor estimation, “it said.
At a record price of Rs 96 per share, Yes Securities has risen 18% on the counter. It maintains a buy rating with a target price of Rs 114 per share.
“We expect execution to increase in FY22 / 23 with better labor availability and stronger order books. We expect the operating margin to gradually increase to 10-11% as the execution ramp increases. We maintain our BUY rating on the stock for the revised target.” 114 (based on SOTP valuation), “said the brokers
Aditya Birla Capital
HDFC Securities maintained a buy rating for ABCL with a target price of Rs 164, up nearly 60% from Tuesday’s closing price of Rs 102.10 per share.
The brokerage said that Aditya Birla Capital’s consolidated return ratio seems to be on track to move closer to franchise potential, which has been consistently implemented across the business. “Lending businesses have gradually shifted to retail and granular lending, which is reflected in the sustainable improvement in franchise earnings. Insurance businesses continue to build their profit margins,” it says.
Based on attractive sector views, Kotak Institutional Securities Aditya Birla Capital has started coverage with an ad rating.
It will support ABCL’s assessment of its focus on profitable growth across the business through a combination of high margin segment transfers, efficient cost management and operating leverage. “We started coverage on ABCL with ADD rating and So14-based FV of Rs145,” the brokerage said.