Brokerage Perspectives on InterGlobe Aviation, TVS Motor, Infosys, and Tata Motors

Brokerage ratings play a significant role in guiding investors’ decisions in the dynamic stock market environment. This article presents the latest ratings from renowned brokerage firms for four prominent companies: InterGlobe Aviation, TVS Motor, Tata Motors, and Infosys. These ratings provide valuable insights for investors seeking guidance in their investment strategies.

Credit Suisse’s Top Return on InterGlobe Aviation | Target Rs 2700

Credit Suisse, a prominent brokerage firm, has reiterated its outperform rating on InterGlobe Aviation and set a target price of Rs 2700 for the stock.

The brokerage acknowledges the scarcity of aircraft supply over the past two decades and highlights IndiGo’s potential 500-plane order as a strategic move to secure supply beyond 2028 in a market characterized by tight availability.

Credit Suisse further notes that the order for 470 planes by Air India has not yet been fully incorporated into the Airbus/Boeing backlog. The grounding of these planes has resulted in a substantial drag on InterGlobe Aviation’s financial performance, amounting to approximately Rs 400-500 crore per quarter, despite the compensation received.

This evaluation from Credit Suisse reflects their positive outlook on InterGlobe Aviation’s ability to navigate the challenges in the aircraft market and leverage its position as a leading airline carrier in India. The assigned target price of Rs 2700 indicates potential growth for the stock.

Macquarie’s Top Return on TVS Motor Company | Target Rs 1418

Macquarie, a renowned brokerage firm, has reiterated its outperform rating on TVS Motor Company and set a target price of Rs 1418 for the stock.

The brokerage highlights that the fundraising by TVS Credit, the company’s subsidiary, was achieved at a marginal premium to the estimated value. Macquarie further notes that the investment by PI (Private Investment) could potentially limit future capital requirements for TVS Credit, which is seen as a positive development for TVS Motor’s balance sheet.

Macquarie continues to consider TVS Motor as one of the top stock picks in the two-wheeler sector, demonstrating its confidence in the company’s prospects.

Sharekhan About Tata Motors: Buy | Target Rs 633

Sharekhan, a reputable brokerage firm, has reiterated its buy rating on Tata Motors and set a 12-month target of Rs 633 for the stock.

The brokerage highlights Tata Motors’ management sharing an optimistic outlook for both its Passenger Vehicle (PV) and Commercial Vehicle (CV) businesses in the domestic market. Sharekhan notes that Tata Motors is targeting a double-digit EBITDA margin for both its CV and PV segments. Furthermore, the electric vehicle (EV) business of Tata Motors is gaining traction, and the management expects it to achieve EBITDA positivity in the near to medium term.

Sharekhan maintains its buy rating on Tata Motors, anticipating continued improvement in the performance of Jaguar Land Rover (JLR), the PV segment, and the CV segment. Additionally, they expect a reduction in net automotive debt from the current levels.

Investors should conduct their own research and consider their risk tolerance before making investment decisions. It is important to note that market conditions can change, and investors should exercise due diligence when evaluating investment opportunities.

ICICI Securities About Tata Motors: Buy | Target Rs 1267

ICICI Securities, a reputable brokerage firm, has maintained a buy rating on Tata Motors and set a target price of Rs 1267 for the stock.

Regarding Infosys, ICICI Securities expects the company’s Q1FY24 results to be weak. However, the brokerage considers Infosys’ FY24 revenue guidance of 4-7% YoY CC (Year-on-Year Constant Currency) growth to be healthy. They note that the implied Compound Quarterly Growth Rate (CQGR) of 2.3-2.9% at the mid to high end of the guidance is higher than Infosys’ pre-COVID CQGR of 2.2%.

The note further highlights that, except for a guidance miss in Q4FY23, Infosys has a positive track record of either upgrading or maintaining the guidance throughout the year. Additionally, Infosys has been delivering results near the higher end of the guidance during Salil Parekh’s tenure as CEO.

Conclusion

Credit Suisse, Macquarie, ICICI Securities, and Sharekhan, esteemed brokerage firms, provide their expert perspectives on InterGlobe Aviation, TVS Motor, Infosys, and Tata Motors, respectively. The ratings and target prices reflect the positive sentiment towards these companies, considering factors such as aircraft supply scarcity, fundraising success, revenue guidance, and future growth prospects. Investors are advised to conduct further research and consider their risk tolerance before making investment decisions. It is crucial to note that market conditions may change, and individual investors should exercise due diligence while making investment choices.