Brokerage Calls: Maruti Suzuki Upgraded, Godrej Consumer Downgraded
Let’s get into today’s brokerage calls and analyst views, we will break down the winners and the ones facing a bumpy ride.
General Insurance Sector: Growth and Challenges
- CLSA on General Insurance: ICICI Lombard grew 20% YoY in Q1, but analysts expect a combined ratio of 102.8%, 100 bps up YoY. Star Health grew 18% YoY, can grow even more in Q2 onwards.
- Jefferies on General Insurance: June saw general insurance growth slow down to 7% YoY, private players outperformed PSU’s. ICICI Lombard was the standout with 16% YoY growth, driven by motor and health insurance.
Consumer Goods: Godrej Consumer Under Pressure
- CLSA on Godrej Consumer: Analysts have an “Underperform” call with a target of ₹1,079/share, as they see slowing growth in insecticides and challenges in the overseas business.
Financial Services: CreditAccess Grameen is Resilient
- Goldman Sachs on CreditAccess Grameen: Stress tests show limited downside for this financial services company. Even with credit cost increases, analysts expect ROA and ROE to be healthy. Base case scenario suggests strong growth in profit and profitability.
Industrials: Supreme Industries is Bouncing Back
- Jefferies on Supreme Industries: A strong “Buy” call with a target of ₹6,700/share as they are very positive on Supreme Industries. Despite high base, the company grew volumes in April-May and their focus on value added sales should lead to improved margins.
Auto Sector: Maruti Suzuki is Gaining Momentum
- Citi on Maruti Suzuki: A “Buy” rating and a target of ₹15,100/share as the sentiment is positive on Maruti Suzuki. The recent tax break on hybrid vehicles by Uttar Pradesh government is a big tailwind, which should boost sales volumes.
- Macquarie on Maruti Suzuki: While maintaining a “Neutral” call, Macquarie acknowledges the positive sentiment from the tax break on hybrid vehicles. This should benefit Maruti Suzuki as they have 20% market share in the strong hybrid segment.
Bottomline:
- General insurance looks good, ICICI Lombard is the one to watch.
- Godrej Consumer is under pressure, Supreme Industries is a buy.
- Maruti Suzuki is a government play, so a good pick.
Hey investors, stay informed and keep watching for more!
Maruti Suzuki stock analysis, ICICI Lombard share price, Godrej Consumer brokerage report, Supreme Industries buy call, CreditAccess Grameen growth outlook, Indian stock market insights
Get the latest insights from top brokerages on Maruti Suzuki, ICICI Lombard, Godrej Consumer, Supreme Industries, and CreditAccess Grameen. Discover potential investment opportunities and market trends.
