ICICI Securities, Citi, and Jefferies have maintained their bullish stance on Allied Blenders, Divi’s Laboratories, and Zomato, respectively, projecting significant upside based on strong business strategies and market dynamics.
These recommendations underline themes such as premiumisation in the liquor industry, structural growth in pharma, and innovation in the food-tech space.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
ICICI Securities on Allied Blenders: Buy | Target Rs 400 | LTP Rs 322 | Upside 24%
ICICI Securities has initiated a Buy rating on Allied Blenders with a target price of Rs 400, implying a 24% upside from the current market price of Rs 322.
The company is focused on raising the bar by shifting its emphasis toward the premium and prestige categories, aiming to capture higher-value segments.Portfolio enhancements are expected to drive double-digit volume growth in the premium and above (P&A) segments, supported by profitable growth in the mass-premium category.Additionally, Allied Blenders’ strategic backward integration into manufacturing its own Extra Neutral Alcohol (ENA), along with premiumisation efforts and operating leverage, is likely to contribute to operating margin expansion.
ICICI Securities projects the company to deliver a compound annual growth rate (CAGR) of 10% in revenue and 30% in EBITDA over FY24-27, highlighting robust growth prospects.
Citi on Divi’s Laboratories: Buy | Target Rs 6,850 | Upside 15%
Citi has maintained a Buy rating on Divi’s Laboratories with a target price of Rs 6,850, indicating a potential upside of 15% from the current market price of Rs 5,953.
The company is well-positioned both tactically and structurally, making it Citi’s top pick in the Indian pharma sector.
Contrary to market expectations of a decline, Divi’s API sales for Entresto could see growth, supported by the company’s expanding pipeline of contrast media business.
This growth in Entresto API and contrast media is likely to drive consensus upgrades, reinforcing the company’s strong outlook and investment appeal.
#BrokerageRadar | Citi on Divis Lab: Maintain Buy with target price of Rs 6850@Citi pic.twitter.com/ZX6KlgJgu3
— ET NOW (@ETNOWlive) November 29, 2024
Jefferies on Zomato: Buy | Target Rs 335 | LTP Rs 286 | Upside 17%
Jefferies has maintained a Buy rating on Zomato with a target price of Rs 335, offering a 17% upside from the current market price of Rs 286.
The company has introduced the ‘District’ app, envisioned as a one-stop destination for various going-out activities, which management believes will be a key theme for the next decade.
Initially focusing on dining-out and ticketing, the app is expected to expand into new use cases over time.
While the current total addressable market (TAM) may seem limited, the industry is still in its infancy—similar to how food delivery and quick commerce evolved in recent years.
Jefferies highlights the market’s supply constraints, creating significant opportunities, as evidenced by the overwhelming demand from fans trying to secure passes for Coldplay and Diljit Dosanjh events in India.
(With inputs from ETNow)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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