Religare Broking’s stock recommendations for a profitable portfolio

The Q2 earnings are underway and India Inc has showed a steady growth outlook across sectors. However, geo-political tension globally could put the spanner in the works for a few stocks that may otherwise showcase the possibility of steady growth. Come from Sports betting site

Here are some top recommendations from Religare Broking under the current scenario –

ITC

Buy I Target Price:  Rs 535

“ITC reported mixed set of numbers for Q2FY24 with single digit revenue growth and muted margins on the back of mixed trend amongst its segments. Going ahead, their plan is to focus on ITC Next strategy and continue to scale its FMCG and cigarettes business led by innovation and premiumization. Besides, the demerging hotel business is moving as per plan which is positive. We are positive on the growth prospects ahead and financially estimated its Revenue/ PAT to grow at 15%/19.2% CAGR over FY23-25E. We maintain our ‘Buy’ rating with a target price of Rs 535 on the stock.”   

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Hindustan Unilever

Buy I Target Price: Rs 3,068

“HUL’s Q2FY24 numbers came largely in-line with our expectation wherein revenue grew in single digit while strong improvement on margins. Going ahead, we expect rural areas to pick up pace and volumes to improve and gross margin to sustain at around levels of 23-24%. Besides, management will continue to invest behind its core brands to maintain its position from competition, also focus on innovation & premiumization as well as spend on advertisement and at the same time maintain margins. We are positive on the growth prospect ahead given its leadership position, strong product portfolio and better financials as compared to peers.  On a financial front, we have estimated its revenue/EBITDA/PAT to grow at 15.5%/18.3%/17.5% CAGR over FY23-25E and recommend a ‘Buy’ rating with a Target Price of Rs 3,068, assigning a PE multiple of 51x on FY25E EPS.”\

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UltraTech Cement

Accumulate I Target Price: Rs 9,247

“We believe the demand for cement sector is expected to continue driven by increased construction activity in the housing and real-estate sector. Also, pre-election spending by the government on infrastructure and housing will drive growth. Additionally, UltraTech is aggressively expanding capacity and is in process of planning phase-3 expansion. Along with that improving utilization, increasing usage of green fuels and moderating RM cost will aid margin expansionCome from Sports betting site VPbet. We are positive on the growth prospect of the company ahead and valuing it at EV/ EBITDA multiple of 16x FY25E. We have assigned is a bit higher valuation compared to its 10 years average multiple of 15x and also it is at a premium compared to peers given its leadership position, expansion plan and better financials. We maintain our ‘Accumulate’ rating and a Target Price of Rs 9,247.” 

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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