Global View: ACC, Power Grid, Abbott India and Nykaa could give 10-30% return in 12 months

Indian market is likely to consolidate on Thursday, tracking muted global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

ACC: Buy| Target Rs 2710

CLSA maintained a buy rating on ACC post December quarter results with a target price of Rs 2710 that translates into an upside of over 17 per cent from Rs 2310 recorded on 9 February.
 

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4QCY21 Ebitda of Rs5.6bn (down 21% YoY, 22% QoQ) missed estimates on higher costs. Volumes also fell by about 4% YoY to 7.4mt.
 
Blended realisations remain flat on a QoQ basis and Ebitda/t fell 18% YoY (-31% QoQ) to Rs749 & was weaker than estimates.

Power Grid: Target Rs 250

CLSA maintained buy rating on Power Grid post December quarter results with a target price of Rs 250 that translates into an upside of over 19 per cent from Rs 210 recorded on 9 February.

The company declared 2nd interim dividend. Rajasthan green corridor commissioning & HVDC projects will be key drivers. The global investment bank see earnings growth of 29% over FY 21-24, said the note.

Abbott India: Buy| Target Rs 21,830

CLSA maintained a buy rating on Abbott India post December quarter results with a target price of Rs 21,830 which translates into an upside of over 30 per cent from Rs 16,750 recorded on 9 February.

The Q3 profit growth was largely in-line with the estimate. The company is positioned for double-digit growth in revenue and earnings, said the note.
 
Macro concerns from rising yields on growth stocks make us cut our target PE, the note added.

Nykaa: Overweight| Target Rs 2040

Morgan Stanley maintained an overweight rating on Nykaa post December quarter results with a target price of Rs 2040 that translates into an upside of over 10 per cent from Rs 1850 recorded on 9 February.

The 3Q earnings were ahead of estimates on top line and margins. The company continues to focus on driving growth and profitability.

The gross margins improved to 46%, up 450bps on a YoY basis. However, EBITDA margins saw a compression of 700bps YoY to 6.3% due to higher marketing expenses, said the note.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)