Most analysts maintained their bullish stance and raised their price targets after India’s biggest automaker’s net profit more than doubled in the three months to December 2022, well beating analysts’ expectations.

Shares rose nearly 1% to close at ₹8,770 apiece on the NSE – their highest levels in two months. Citi, CLSA and Nuvama have raised their respective price targets and see up to 50% upside from current levels. Analysts raised earnings estimates on expectations that the company will gain leadership in the SUV segment with two new launches.

“At its current valuation, MSIL (

) will benefit from a strong franchise, a favorable product cycle, a favorable product mix and commodity advantages – overriding margin concerns,” Nuvama (formerly ) said in a customer note. Of the 35 analysts who have looked at the company’s earnings, 25 of them have a “Buy” or “outperform” on the stock. Seven analysts remain neutral while three of them have a sell rating, a Bloomberg analyst poll showed. In total, these analysts raised the consensus price target by 1% to ₹10,498.07. translates into a potential upside of 20% from current levels.

“After two consecutive years of declining volumes, we believe MSIL is on the cusp of a new bull cycle. New model launches, a healthy order book and favorable winds for leveraged core/operating products will support more strong performance going forward,” said in a client note. The brokerage values ​​the stock at 25 times its one-year forward price-to-earnings ratio as it raised the price target.

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