A target price is an analyst’s projection for the future price of a stock, which the analyst believes stock at a reasonable price. Based on the company’s previous achievements as well as future goals and strategy. A lower price target, on the other hand, may indicate that the analyst believes the stock will fall in value.
Exide Industries Ltd
Exide Industries Ltd is the world’s fourth-largest manufacturer of automotive and industrial lead-acid batteries Exide Industries Ltd. is primarily engaged in the manufacturing of storage batteries and allied products.
Exide Industries Limited supplies batteries for submarines, including high-end submarine batteries. Exide Industries Limited is also involved in the development of indigenous Type-IV class submarine batteries.
Exide Industries Ltd. shares have gained 71 percent in the last six months and 141 percent in a year.
Nomura and CITI have maintained a target price on Exide Industries Ltd. of ₹560 per share, representing an upside of 22 percent from Tuesday’s trading price of ₹464 per share.
The company reported a 13 percent increase in revenue year on year, from ₹3,677 crore in Q4FY23 to ₹4,173 crore in Q4FY24. During the same period, net profit increased by 2.8 percent, from ₹181 crore to ₹186 crore.
Based on Exide’s Q4 results, Nuvama revised its projected earnings per share (EPS) for FY25E upwards by 4 percent, attributing the increase to improved margins. This adjustment incorporates an anticipated compound annual growth rate (CAGR) of 8 percent for core revenue (lead acid battery) and 17 percent for EPS.
Nomura India highlighted that within the Li-ion sector, the battery manufacturer stands out amongst its peers due to its significant investments in plant infrastructure, technological collaborations (such as with SVOLT), and securing customer approvals (including a memorandum of understanding with Hyundai/Kia).
Furthermore, it anticipates that original equipment manufacturers (OEMs) will increasingly prioritize local sourcing in the foreseeable future, which is expected to boost demand for Exide’s products.
Birlasoft Ltd
Birlasoft is engaged in Computer programming, consultancy, and related activities. It provides software development and IT consulting to its customers predominantly in Banking, Financial Services, and Insurance, Life Sciences and Services, Energy Resources and Utilities, and Manufacturing.
Anand Rathi has recommended a target price on Birlasoft Ltd of ₹810 per share, representing an upside of 31 percent from Tuesday’s trading price of ₹609 per share.
Birlasoft Ltd. shares have gained 3.5 percent in the last six months and 116 percent in the last 12 months.
The company reported an 11 percent increase in revenue year on year, from ₹1,226 crore in Q4FY23 to ₹1,363 crore in Q4FY24. During the same period, net profit increased by 61 percent, from ₹112 crore to ₹180 crore.
Based on brokerage analysis, Birlasoft’s Q4 revenue reached $164 million, marking a 1.6% increase sequentially and a 10% increase year-over-year. Growth was evident across most segments except for Healthcare. Notably, key verticals such as Manufacturing, BFSI, and E&U experienced accelerated growth.
However, Healthcare experienced a significant decline and is anticipated to rebound only in the second half of the year. The Total Contract Value (TCV) amounted to $240 million, reflecting a 16% decrease year-over-year, bringing the Last Twelve Months (LTM) figure to $875 million, which saw a 1% increase year-over-year.
Nonetheless, this decline in TCV shouldn’t pose an immediate concern considering the robust book-to-bill ratios of 1.5x for Q4 and 1.4x for FY24. Additionally, the EBITDA margin saw an expansion to 16.3%, rising by 30 basis points sequentially and 265 basis points year-over-year.
Star Health & Allied Insurance Company Ltd
Star Health and Allied Insurance Company Ltd provides services in health, personal accident and overseas travel insurance, directly as well as through various channels like agents, brokers and online.The company’s market share of 32.87% in the retail health gross segmentt.
Motilal Oswal has recommended a target price on Star Health & Allied Insurance Company Ltd of ₹730 per share, representing an upside of 32 percent from Tuesday’s trading price of ₹546 per share.
The company reported an 18 percent increase in revenue year on year, from ₹3,131 crore in Q4FY23 to ₹3,689 crore in Q4FY24. During the same period, net profit increased by 39 percent, from ₹102 crore to ₹142 crore.
Brokerage believes that Star Health has the potential for sustained growth due to its strategic investments in profitable channels and products. They maintain their recommendation to buy the stock, setting a target price of ₹ 730, calculated on a multiple of 30 times the estimated earnings per share for the fiscal year ending in 2026.
Written by Omkar Chitnis
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