Motilal Oswal Reiterates Neutral Rating To 5 Mid Cap, Large Cap Stocks

Motilal Oswal has assigned neutral call to 5 stocks. These stocks are PVR, JSW Steel, LTIMindtree, GlaxoSmithKline Pharma, and Multi Commodity Exchange of India Ltd. All these are large cap and mid cap stocks. Check details below:

PVR: The analyst has recommended neutral call to PVR stock with target price of Rs 1570 apiece. Current market price of PVR is Rs 1573 apiece. The company has a market capitalisation of Rs 15,407.98 crore. The mid cap stock from Media & Entertainment sector rallied 5% in last 3-months, and 22% in last 1-year.

According to Motilal Oswal, "The rich valuation the company commanded historically has contracted, given the slower recovery and risk posed by OTT players. We value the merged entity at 9x FY24E EV/EBITDA and maintain our TP of INR1,570. We reiterate our Neutral rating on the stock."

JSW Steel: Motilal Oswal has suggested neutral call to the large cap stock operating in Metals-Ferrous sector with target price of Rs 710 apiece. Current market price of JSW Steel is Rs 676.20 apiece with intraday rally of 2.04%. The company has a market capitalisation of Rs 1,63,452.45 crore. The stock rallied 283% in last 3-years and fell a little over 1% in last 1-year.

According to the analyst, "Robust domestic demand and increase in capacity to drive growth. The current valuations appear to be fully discounting the benefits, which are likely to accrue through FY24. We reiterate our Neutral rating on the stock with a target price of INR710 (6x FY24E EV/EBITDA)."

LTIMindtree: The brokerage house has given neutral call to LTIMindtree with target price of Rs 4590 apiece. Current market price of LTIMindtree is Rs 4674.30 apiece with intraday rally of 2.68%. Its market capitalisation is Rs 1,38,274.22 crore. The large cap stock operating in IT Software sector gave 8% return in last 3-months, declined 22% in last 1-year, and gave 216% return in last 3-years.

According to Oswal, "LTIM as a combined entity has deep domain capabilities, strong partnerships with hyperscalers, and a robust sales engine, which will result in industryleading growth. We expect a USD revenue CAGR of ~13% over FY23-25, which is at the top end of our Tier I IT Coverage Universe. We value the stock at 25x FY24E EPS. We have a Neutral rating with a TP of INR 4,590."

GlaxoSmithKline Pharma: Motilal Oswal has recommended neutral rating for GlaxoSmithKline Pharma with target price of Rs 1300 apiece. Current market price of GlaxoSmithKline Pharma is Rs 1280.05 apiece. The company has a market capitalisation of Rs 21,684.82 crore. The large cap pharmaceuticals sector stock rallied over 3% in last 1-month, declined 18% in last 1-year, and gave a return of 3% in last 3-years.

According to Oswal, "Accordingly, we have cut EPS earnings of GLXO by 3% for FY24/FY25. We value GLXO at 33x 12M forward earnings to arrive at a price target of INR1,300. We reiterate Neutral rating on the stock due to limited upside from the current levels."

Multi Commodity Exchange of India Ltd: The analyst has given neutral call to MCX with target price of Rs 1450 apiece. Current market price of Multi Commodity Exchange of India Ltd is Rs 1495.80 apiece with intraday gain of 0.65%. The company has a market capitalisation of Rs 7,628.34 crore.

According to Motilal Oswal, "MCX expects to complete the transition by Jun'23. While we are upbeat on the long-term potential of volumes from FPIs, we do not see a meaningful contribution in the near term. We have a Neutral rating on the stock with a 1-year TP of INR1,450 (24x FY25E EPS)."

Disclaimer: The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.