Monday, July 15, 2024

Sensex and Nifty Trade Higher on June 25, 2024: Stock Market Live Updates show Narrow Range near All-Time Highs

Analyst Reports on Various Companies: Zomato, L&T, HDFC Bank, Amara Raja, KRYSTAL INTEGRATED, HCL Tech, Ujjivan SFB, Whirlpool, USL

CLSA and UBS are bullish on Zomato, while Investec and Investec are positive on Amara Raja. Let’s dive into the latest insights from these top brokerages on the stock market movers.

CLSA has issued a Buy Call on Zomato with a target price of Rs 248. This comes as Prosus’ Annual Report for FY24 revealed that Swiggy’s overall gross order value (GOV) grew by 26% year on year. However, Swiggy’s overall GOV growth lagged behind the company’s corresponding growth of 36% during the same period. Interestingly, while Swiggy’s overall revenue growth was at 24% year on year, Zomato’s adjusted revenue growth stood at an impressive 55.9% year on year. Additionally, Swiggy’s trading losses decreased to $158 million during FY24, and the company reported a positive EBITDA of $5 million during the same period.

UBS also holds a positive outlook on Zomato, issuing a Buy call with a target price of Rs 250. Swiggy’s GOV grew by 26% year on year as of December 2023, with 104 million users per Prosus. The company’s food delivery GOV experienced ‘double-digit’ growth, driven by improved advertising and platform fees. Furthermore, Swiggy’s quick-commerce segment saw fast GOV growth, with 487 darkstores operating in 26 cities. In comparison, the company’s GOV grew by 37% in FY24, with 530 darkstores as of March 2024.

Moving on to other sectors, L&T has garnered an Overweight Call from MS with a target of Rs 3,857. The company aims to achieve carbon neutrality by 2040, with GHG emissions peaking out by FY26. L&T plans to focus on energy efficiency (35%) and decarbonizing energy usage (55%) to drive its net zero goal, with offsets playing a smaller role (10%). The company’s GHG emission intensity improved by nearly 12% in FY24, primarily driven by diesel and electricity consumption, which make up 75% and 16% of its energy consumption, respectively.

Amara Raja has been in the spotlight, with JPMorgan issuing a Neutral Call and a target of Rs 1,210. The company announced a technical licensing agreement with Gotion, emphasizing that the partnership will accelerate the development of its gigafactory. Investors view this partnership positively, as it should boost confidence in the company’s progress towards its 16 GWh capacity target. However, further details on the tech partnership and potential OEM contracts or funding will be crucial for a further re-rating.

Overall, the stock market continues to see dynamic movements and investor sentiment remains key in driving stock valuations. Stay tuned for more updates on market trends and analyst recommendations.

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