Sharekhan Broker Research reports

Hero MotoCorp Limited (HMCL) is strategically broadening its premium product portfolio by introducing new models and variants within its established brands. This move is aimed at enhancing brand recognition and establishing powerful brands in the premium segment.

Godrej Consumer Products (GCPL) pointed to a weak Q3FY2025 in its pre-quarter business update affected by flat sales volumes and a margin dip in the India business. Domestic sales volumes growth would be flat (vs. average 7% volume growth in last six quarters) owing to lower soap sales and HI sales volumes (that contribute ~67% to India business).

The DAC has greenlit five proposals critical to enhancing India’s defence preparedness - 1) AoN for 31 new water jet Fast Attack Crafts (FAC), 120 Fast Interceptor Crafts (FIC) and 6 ALH (M) MR likely to boost maritime surveillance capabilities. 2) Overhaul for tanks and BMPs to enhance life of armored fleet of Indian Army.

Earnings growth would improve as AUM growth improves in the coming years as the most internal IT/systems and processes have been streamlined in FY2024. Focus is now on accelerating growth with enhanced centralised due diligence.

Infosys led the revenue growth in constant currency (CC) for Tier-1 IT service companies in Q2FY25 driven by broad based participation across verticals, and a 2.3% y-o-y growth in CC in its key Financial services vertical.

We retain a Buy on Supreme Industries Limited (SIL) with an unchanged PT of Rs. 5,700. The recent correction due to falling PVC prices provides a good buying opportunity

We maintain BUY with a revised PT of Rs. 2,180 (valued at 28x Dec26E EPS). At CMP, the stock trades at 29.6/26.6/23.6x its FY25/26/27E EPS.

We retain our BUY rating with a revised PT of Rs. 18,800, factoring in a strong revenue/PAT CAGR of 53%/69% over FY2024-FY2027E. The stock currently trades at 82x/62x its FY2026E/FY2027E earnings, respectively.

We maintain a Buy rating on M&M with an SOTP-based revised PT of Rs. 3,600 on healthy traction
in its PV segment, market leadership in tractors space, opportunity to grow in farm machinery
segment, and a strong EV roadmap.

We re-iterate a Buy rating on HUL and keep PT unchanged at Rs. 3,079. Stock has corrected 18% form recent highs and trades at 56x/51x/46x its FY25E/FY26E/FY27E EPS, respectively.