‘Buy’ This Tata Group Stock For Target Price Of Rs 3242: Prabhudas Lilladher

Broking firm Prabhudas Lilladher has recommended a buy on the stocks of D'Mart and Titan in its latest report on the consumer space.

Buy Avenue Supermart with a price target of Rs 4651

According to Prabhudas Lilladher, D'Mart remains a structural pick given strong position in a consolidated brick and mortar modern retail, which has high entry barriers, huge runaway for growth with potential to open 1500 stores in existing clusters and expected increase in throughput from 100 stores opened during Covid period.

"We expect margins to remain under pressure in 1H24 given sustained pressure in higher margin. General merchandise and apparel, deflation in commodity prices and rising sales of lower margin D'Mart ready business. We expect strong growth in D'Mart Ready with expected EBIDTA breakeven by FY25 and PAT breakeven by FY27. We estimate 20% PAT CAGR over FY23-25. 'Retain 'BUY' with revised target price of Rs 4651 (Rs 4447 earlier)," the brokerage has said.

Titan: Buy with a price target of Rs 3242

Prabhudas Lilladher says it is positive on Titan as a play on consumer shift towards organized players in jewellery, eyecare, watches and emerging segments. "The company is focusing on volume led growth in jewellery with highly competitive making charges, steady distribution expansion and strong brand salience. Titan is creating next levers of growth in Eyewear (Titan Eye+), Jewellery (Caratlane and Mia), Dress material (Taneira) and Wearables (Titan and Fastrack) which will continue to power growth. We expect premium valuations to sustain given strong growth outlook and emerging lifestyle play. We estimate 20% EPS CAGR over FY23-25. We assign DCF based target price of Rs 3242 (Rs 2992 earlier). Retain 'Buy'," the brokerage has said.

Disclaimer

The above article is for information only. The stock recommendations are picked from the brokerage report of Prabhudas Lilladher. This is not a recommendation of either Greynium Information nor the author. Neither Greynium Information Technologies, nor the author should be held responsible for losses caused based on a decision from the article.