In FY24, ex-Mobiles, and most other product segments reported muted growth.High valuations could normalize once the high-growth phase is behind.Nomura upgraded Apollo Tyres to Neutral from a reduce rating earlier but raised the target price to Rs 512 from Rs 478 earlier.The focus is on a favorable mix, and price hikes are likely to support margins.
The current valuation does not look expensive given the healthy FCF yield.Jefferies maintained a buy rating on Adani Ports with a target price of Rs 1640.
The management has guided for 5 years of double-digit growth.The management is targeting an 18% EBITDA CAGR in FY24-29E.
The earnings outlook is normalising and valuation appears rich.
The margin expansion at the pace seen last year is unlikely to continue forward.
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Brokerage firm Jefferies maintained an underperform rating on Dixon Technologies Nomura upgraded Apollo Tyres to neutral, Jefferies recommend buy on Adani Ports and HSBC downgraded Colgate to hold.Jefferies maintained an underperform rating on Dixon Technologies post Q4 results but raised the target price to Rs 6350 from Rs 5920 earlier.The Q4 numbers were in line with estimates but the risk-to-reward ratio looks stretched. In FY24, ex-Mobiles, and most other product segments reported muted growth.High valuations could normalize once the high-growth phase is behind.Nomura upgraded Apollo Tyres to Neutral from a reduce rating earlier but raised the target price to Rs 512 from Rs 478 earlier.The focus is on a favorable mix, and price hikes are likely to support margins. The current valuation does not look expensive given the healthy FCF yield.Jefferies maintained a buy rating on Adani Ports with a target price of Rs 1640. The management has guided for 5 years of double-digit growth.The management is targeting an 18% EBITDA CAGR in FY24-29E. Ports EBITDA is expected to rise at 16% CAGR between expansion and existing ramp-up.The global investment bank remains positive given the capex prudence with a return focus.The management is positive on market share gains at acquired ports and also Mundra with Dedicated Freight Corridor commissioning.HSBC downgraded Colgate-Palmolive India to hold from buy earlier post Q4 results and slashed the target price to Rs 2900 from Rs 2950 earlier.Colgate has had a strong run, which now weighs on good results. The earnings outlook is normalising and valuation appears rich. The margin expansion at the pace seen last year is unlikely to continue forward.
