Posted on by Yashi Gupta

Friday’s top brokerage calls: Hindustan Unilever, Bajaj Auto, UltraTech, and more

Citi on Bajaj Auto: The brokerage has a ‘sell’ call on the stock with the target at Rs 3,000 per share. The brokerage is concerned about the motorcycle product mix and domestic 3W demand.
Citi on HUL: The brokerage has a ‘buy’ call on the stock with the target at Rs 2,710 per share. It noted that the company is likely to be a beneficiary of the reopening.
CLSA on Havells: The brokerage has an ‘outperform’ rating on the stock with the target at Rs 1,230 per share. The brokerage said that the structural prospect of the company was enhanced with infra and residential market recovery. It also upgraded the company’s valuation multiple from 50x to 55x.
CLSA on HUL: The brokerage has a ‘buy’ call on the stock with the target at Rs 2,850 per share. It noted that the company’s near-term margin may be stressed with inflation at a multi-year high.
CLSA on ICICI Lombard: The brokerage has an ‘outperform’ call on the stock with the target at Rs 1,600 per share. It said Q1 was marred by one-offs but it expects the situation to normalise by the second half of the fiscal year 2022.
CLSA on UltraTech: The brokerage has an ‘outperform’ call on the stock with the target at Rs 8,000 per share. According to the brokerage, the risk-reward ratio for the company is fair at its current valuation.
Goldman Sachs on HUL: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 2,182 per share. It noted that the company is below on lower pricing growth but demand is normalising now and it can benefit from the re-opening.
JPMorgan on UltraTech: The brokerage has a ‘neutral’ call on the stock with the target at Rs 6,890 per share. JPMorgan said that the cost pressures build up for the company despite it beating first-quarter result estimations.
Macquarie on Bajaj Auto: The brokerage has a ‘neutral’ rating on the stock with the target at Rs 4,053 per share. It noted that the company’s margins were impacted by lower volumes and input cost inflation and that the near-term headwinds still persist.
Macquarie on UltraTech: The brokerage has an ‘outperform’ call on the stock with the target at Rs 8,542 per share. According to the brokerage, the company’s expansion projects are on track and it expects industry-leading growth over FY21-24.
Morgan Stanley on Bajaj Auto: The brokerage has an ‘overweight’ rating on the stock with the target at Rs 4,550 per share. According to the brokerage, the weaker product mix can be offset by the price increase during the quarter. It also said the company’s earnings were in line with the brokerage’s estimations.
Nomura on Bajaj Auto: The brokerage has a ‘buy’ call on the stock with the target at Rs 4,668 per share. It noted that though the company’s first-quarter results were slightly below estimates, it is focusing on the premium portfolio and has some margin catalysts in place to drive growth.
UBS on HUL: The brokerage has a ‘buy’ call on the stock with the target at Rs 2,850 per share. As per the brokerage, the improvement in mobility should aid HUL’s discretionary and out-of-home portfolio.