Buy

Q2 net sales of Rs 208bn (+6% QoQ) driven entirely by realisation gains with NRPV at Rs 763k (+6% QoQ)

We roll over our estimate to FY25E and value the company at 17.5x FY25E EV/EBITDA to arrive at the TP of Rs. 25900/share, implying an upside potential of 11% from the current levels and hence change our rating from HOLD to BUY.

We recently interacted with Ashok Leyland (AL) management in order to understand the company’s growth and profitability outlook. Following are the key takeaways: a) industry demand continues to be robust led by growth in inter alia infrastructure, mining and e-commerce segments.

Turnaround on the anvil

We recommend a BUY rating on the stock with a target price of Rs 793/share, implying an upside of 10% from the CMP.

We retain our BUY rating on the stock and value the company at 9x FY24E EV/EBITDA to arrive at a TP of Rs 115/share, implying an upside of 11% from the CMP.

Nagarjuna Construction (NCC) is one of the largest construction players in India & undertakes civil construction in transportation, water & irrigation, buildings, power, transmission and distribution.

The senior management team of Axis Bank (Axis) during its Analyst Day on 24th Nov’22 shared its perspective on why earnings and return profile (RoA of 1.9% and RoE of 18.9% in Q2FY23) are primarily structural and sustainable.

Initiating Coverage Report

On the weekly chart, the stock has given a bullish breakout of the Triangle pattern with a spurt volume which indicates beginning of the uptrend. On a daily chart, Britannia has been moving in higher high and higher lows formation which indicates the trend is positive.