Buy, Sell Stock Ideas For Today From Renowned Broker

At present, the stock markets are bearish due to interest rate hikes by major economies globally. India has also raised its repo rate recently. Hence, the government bonds are being more profitable and investors are looking out for that. Considering these factors, renowned brokerage firm Emkay Global has shared its stock ideas for investors, listed below.

PVR Limited

PVR is one of the biggest multiplexes in India and continues its growth after the pandemic. The current market price (CMP) of the company is Rs. 1706, while the firm has recommended the Target Price at Rs. 2165, giving it a buy rating.

However, PVRL's revenue has declined 12.5% QoQ to Rs. 5.4bn, but beat the firm's estimates on marginally higher ATP, SPH, and footfalls. Footfalls at the PVR halls have seen a sharp rebound in March as the Omicron wave receded. Its net box office collections in the same month have also surpassed the pre-Covid levels. In Q4, the footfall print was at 14.3mn which was impressive, because the period had fewer operational days. March has contributed 64% of the footfalls. ATP has inched up to Rs. 242, while SPH was down by 5.4% QoQ to Rs. 122 on a high base.

Emkay Global has commented, "Though PVR's screen additions lagged behind Inox in FY22, it is likely to make up for this in FY23 with additions of 120+. Ad revenue recovery is in a slow lane and should take 3-4 months to reach pre-Covid levels as national advertisers are yet to fully come back. We are raising FY23/24E revenue by 4.3%/4.1% to factor in higher screen rollouts. Maintain Buy with a revised TP of Rs. 2,165 (Rs2,230 earlier) as we cut the target multiple of the merged co. to reflect the higher CoE while rolling forward valuations to Jun'24E."

Voltas Ltd.

Voltas Limited is an Indian multinational home appliances company that is contributing significantly to the Indian markets for years. The current market price (CMP) is Rs. 1047, however, the firm has set a Target Price of Rs. 1000, giving it a hold rating.

The UCP segment of the company grew 9.9% YoY, which was much below the brokerage firm's estimate of 18%. UCP's margins fell by 522bps to 10.6%. Additionally, Voltas' Q4 results were also a miss overall; the loss of ~500bps in RAC market share YoY to ~18% in March, which management attributed to high competitive intensity in South India, led to the miss - the firm has mentioned. Considering the performance, the company's EBITDA margins have declined sharply by 268bps YoY to 9.8% due to lower gross margins amid commodity inflation and heightened competitive intensity. However, the EMPS segment margins were relatively better at 6.9%. Management has commented that it has taken measures to regain lost market share and targets to reach the prior levels by Jun'22.

Emkay Global stated, "Our channel checks suggest Voltas' share was weak in Apr'22 as well. Margins should remain suppressed while VOLT tries to regain share. We cut FY22-24E revenue/EBITDA by 4-7% due to lower growth in EMPS and margin compression in UCP. We also reduce our multiple for UCP to 43x from 45x on higher CoE. Maintain Hold with a revised SoTP-based Jun'24E TP of Rs1,000 (Rs1,150 earlier)."

Disclaimer

The above stocks were picked from the brokerage report of Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.