- Date : 16/11/2022
- Read: 3 mins
Brokerages’ take on the latest hot stocks
Four companies recently published their second quarter results for the financial year 2022-23 – ONGC, Apollo Tyres, Biocon and Delhivery. Post their results; their scrips became the hottest trends in the share market.
Brokerage houses and analysts alike have shared their take on the performance of these hot stocks. Here’s what they think –
In their Q2 reports, Apollo Tyres forecasted a 2% to 3% decline in the Earnings Per Share (EPS) in the financial year 2024-25 because of tepid growth in India. The company also stated that the replacement demand growth was also lower than predicted.
Given these predictions, brokerages believe that the company’s stock has an overweight rating. The target price of the scrip is expected to be Rs.370.
Taking on ONGC shares, a leading brokerage said that the production trend in oil and gas is muted. As such, it maintained a ‘Sell’ action on the stock and fixed a target price of Rs.130.
According to another brokerage house, the long-term growth potential of Delhivery is quite strong, and the company is expected to generate good profits.
This observation was backed by Delhivery’s Q2 results that showed 550 basis points improvement in the EBITDA margin on a quarterly basis. An increase in the volume of express parcels and PTL is further expected to increase the company’s EBITDA.
The brokerage, thus, called a ‘Buy’ action on the scrip and fixed a target price of Rs.532.
Biocon’s second quarter results for the financial year 2022-23 showed a 26% YoY growth in the sales volume. The EBITDA also grew by 6% annually, and the top line jumped due to growth in all segments of the company.
With a strong growth outlook, a brokerage firm called a ‘Buy’ action on the stock. Its target price is fixed at Rs.350 apiece.
The bottom line
The observations on all these stocks are by leading brokerage firms that use technical and fundamental analyses to predict stock price movements. However, you should use your own discretion and assess these stocks to judge their profitability. So, take tips from these calls and then make your investment decision based on your needs and financial goals.