Global View: Brokerages on Titan Company, Godrej Consumer, Macrotech Developers & SRF that could give 16-24% return

Indian market is likely to see some bounce back on Friday after falling over 1 per cent in the previous trading sessions.

The action on D-Street is likely to be stock specific, but dips if any, should be used to accumulate quality stocks, suggest experts.
 

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“We believe one should continue to find stock specific buying opportunities in such declines and avoid going against the broader trend. Recently, we have been advocating looking for opportunities from the banking and financial space and this sector is likely to keep the momentum intact in the short term,” Ruchit Jain, Lead Research, 5paisa.com, said.

“The immediate supports for Nifty are placed around 17650 and 17600, while resistances are seen around 17900 and 18000,” he added.

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

Titan Company: Buy| Target Rs 2975

Citi maintained its buy rating on Titan Company with a target price of Rs 2975 that translates into an upside of 14 per cent from Rs 2596 recorded on 6 January.

The company reported a big positive surprise in Jewellery once again. Healthy trends in other segments as well which also auger well for the company, said the note.

The Tata-owned company has reported its quarterly update for Q3FY22 and said its jewellery business witnesses a 37 per cent growth on a YoY basis.

It added 14 more stores taking its store count to 428. Watches & Wearables segment grew 28 per cent YoY and it added 20 stores in the segment taking the count to 809.

Godrej Consumer: Outperform| Target Rs 1130

CLSA maintained the outperform rating on Godrej Consumer with a target price of Rs 1130 that translates into an upside of 19 per cent from Rs 949 recorded on 6 January.

The 3Q update noted high-single-digit consolidated revenue growth YoY. Volume growth for branded India business was expected to be in low single digits.
 
Home care & personal care segment would see high-single-digit growth. Indonesia likely to be stressed with weak profitability.

The company in its Q3FY22 business update said that it expects to deliver close to high single-digit growth (less than 10%) in India, largely driven by pricing.

In Indonesia, it expects a marginal decline in constant currency sales growth. In Godrej Africa, USA and the Middle East, growth momentum continued across most of our key countries of operations

Macrotech Developers: Sell| Target Rs 1000

CLSA maintained its sell rating on Macrotech Developers with a target price of Rs 1000 that translates into a downside of 16 per cent from Rs 1200 recorded on 6 January.

Pre sales guidance of Rs 9,000 cr would require a very strong performance in Q4. The net debt declined sharply to Rs 990 cr that was in line with expectations.
 
The UK business has done well in terms of sales of Euro 191m in Q3. “We believe its current valuation prices in a blue sky scenario, leaving no upside potential,” said the note from brokerage firm.  
 
The company in its operational updates for Q3FY22 said that it had pre-sales of Rs 2608 crores, which is its best quarterly performance in the last 12 quarters, up 40% on a YoY basis.

SRF: Buy| Target Rs 3000

UBS maintained its buy rating on SRF with a target price of Rs 3000 that translates into an upside of over 24 per cent from Rs 2410 recorded on 6 January.

Forecast and earnings upgrade was led by strong outlook in specialty chemical and refrigerant gas segments.
 
Packaging and technical textiles may deliver better profitability, said the UBS note.
It expected the company to beat management specialty chemical revenue guidance of 15-20% in FY22.

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