Amid the ongoing result season, select brokerage firms have come out with research reports on a handful of stocks namely Zomato, Dabur India, Zydus Wellness and Eicher Motors. All of these brokerage firms have a 'buy' ratings for them by the respective brokerages, namely Kotak Institutional Equities, Nuvama Institutional Equities, ICICI Securities and YES Securities respectively. Here's what brokerages said about these counters
Zomato’s food delivery business GMV growth came in at 14%/11% yoy/qoq, 3% ahead of estimates. Marginally higher AOVs and superior take rates drove a better-than-expected CM of 6.4%, EBITDA profitability in the core business and lower losses in Blinkit drove a significant reduction in consolidated EBITDA loss to Rs 48 crore from Rs 225 crore in 4QFY23, said Kotak Institutional Equities
"The ambitious revenue growth target of 40% yoy may be hard to achieve, though profitability may continue to surprise. Our EBITDA/EPS figures witness significant upgrades, though the relative upgrade of 10% to fair value is lower on account of the limited upgrade to longer-dated estimates. Retain BUY with a revised fair value of Rs 105," added Kotak Institutional Equities
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Zydus witnessed a decent performance with double-digit revenue growth,excluding the impact of unseasonal rains on Glucon D brand, which had higher salience in Q1. Nycil, Nutralite and Everyuth exhibited a good performance, while Complan witnessed good consumer offtakes. Sugarfree portfolio could face medium-term headwinds, said ICICI Securities
Margin shrank significantly and we expect margins to remain under pressure in the near term. That said, execution improvement and macro tailwinds in tandem appear a necessity for performance, ICICI Securities added a buy rating with a target price of Rs 1,800 on the stock
Eicher Motors 1QFY24 consolidated results were better with beat to street EBITDA leading to margins beat by 160bp at 25.6%. This was largely due to the positive impact of price hike and cost savings, higher spares sales offsetting lower exports, said YES Securities
"We expect RE’s overall volumes to grow at 11% CAGR over FY22-25E, despite new competitive launches. Recent launches could be an inflection point for RE as a completely new and improved platform should drive efficiencies," added YES Securities with a 'buy' call and a target price of Rs 4,008
Dabur delivered an overall in-line Q1FY24. Foods grew 35 per cent YoY, while beverages edged down 2% YoY. India volumes rose 3% YoY. International business increased 20.6% YoY in CC terms. Gross margin expanded by 74 bps YoY and EBITDA margin held flat. A&P spends shot up 30 per cent YoY, reinforcing Dabur’s goal of gaining market share, said Nuvama Institutional Equities
"Rural and urban markets have done well. Dabur is well placed to capitalise on consumers’ increasing preference for herbal/natural products. We are rolling forward the valuation to Q1FY26E; this along with an unchanged P/E of 50 times yields a target price of Rs 725, from Rs 705 earlier," added Nuvama Institutional Equities
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