Brokerage upgrades significantly impact investor sentiment, often leading to a shift in market perception and stock performance. When reputable brokerages upgrade a stock, it signals confidence in the company’s prospects, encouraging both institutional and retail investors to reconsider their positions. Such upgrades are typically based on in-depth research, market analysis, and insights into a company’s fundamentals, making them highly influential.
The credibility of major brokerages, like Morgan Stanley or CLSA, adds weight to the upgrade, as their analyses are seen as reliable and trustworthy by investors. Investors often perceive upgrades as a validation of the stock’s potential, which can trigger increased buying activity, driving up the stock price and shaping market trends.
3 Stocks in which Brokerage Houses are bullish are:
Page Industries Ltd. (Upside Target: 20%)
Share Price
The shares of Page Industries are currently trading at Rs. 47,616 down by 0.93% from its previous close of Rs. 48, 063 as of January 09, 2025. The stock also touched an intraday Rs. 47,145.
Motilal Oswal’s Target Price for Page Industries
Motilal Oswal has reiterated a “BUY” rating on Page Industries, setting a target price of ₹57,500. This target is based on a price-to-earnings ratio of 65x for FY27E, which aligns with the company’s historical 10-year and 5-year average P/E range of 65x-70x. The brokerage remains confident about the company’s growth trajectory and strong market positioning, especially within India’s growing innerwear and athleisure sectors.
Rationale Behind the Recommendation
The brokerage emphasized Page Industries’ dominant position in the mid-premium innerwear market, supported by the well-established Jockey brand and cost-efficient manufacturing. With a robust distribution network, strong online presence, and ongoing expansion plans, including increased social media marketing and influencer partnerships, the company is well-positioned to expand its consumer base. Motilal Oswal’s positive outlook is underpinned by favorable macroeconomic trends, including rising incomes and urbanization.
Hindustan Unilever Ltd. (Upside Target: 10%)
Share Price
The shares of Hindustan Unilever are currently trading at Rs. 2,434 up by 1.41% from its previous close of Rs. 2,401 as of January 9, 2025.
Emkay Global’s Target Price for Hindustan Unilever
Emkay Global Financial has maintained a “BUY” rating on Hindustan Unilever (HUL) with a target price of ₹2,675 in its research report. The brokerage remains optimistic about HUL’s prospects, particularly in light of recent media reports suggesting the company’s interest in acquiring Minimalist, a rapidly growing brand in the skin and hair-care space.
Rationale Behind the Recommendation
Emkay highlighted Minimalist’s impressive growth, with ₹3.5 billion in revenue for FY24, and plans to achieve ₹10 billion in revenue over the next three years. The potential acquisition is seen as a strategic move for both companies, with HUL benefiting from Minimalist’s digital presence and R&D capabilities, while Minimalist can leverage HUL’s vast offline distribution network.
This partnership is expected to offer significant synergies, with both brands gaining access to new markets and cohorts. The brokerage remains confident in HUL’s execution ability and sector leadership.
Bajaj Auto Ltd. (Upside Target: 10%)
Share Price
The shares of Bajaj Auto are currently trading at Rs. 8,830 up by 2.17% from its previous close of Rs. 8,642 as of January 9, 2025. The stock also hit an intraday high of Rs. 8,898.
CLSA’s Upgrade for Bajaj Auto
CLSA has upgraded Bajaj Auto to “Outperform” with a target price of ₹9,493, indicating a potential upside of nearly 10%. The brokerage’s positive outlook follows a 32% correction in the stock over the past four months, bringing its valuation to 21x expected FY27 earnings, slightly above its long-term average of 19x.
Rationale Behind the Upgrade
CLSA noted Bajaj Auto’s impressive performance in the e-2W segment, where its market share surpassed 25% in December, driven by the launch of a more affordable Chetak variant. The brokerage highlighted the company’s strong ability to maintain 20% margins while scaling up its electric vehicle operations. While the company excels in the premium segment, CLSA warned of increasing competition in the executive segment.
Written By: Dipangshu Kundu
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