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Nomura has maintained its Buy recommendation on Tata Consumer, raising the target to ₹1050. This decision is buoyed by the robust performance of the company’s salt business and steady growth in the beverage sector, despite competitive market conditions. The company’s international and non-branded business has also significantly contributed to an impressive margin beat, with these growth businesses now accounting for 18% of total sales.
In other market news, CLSA continues to hold a positive outlook for GAIL India, maintaining a buy stance with a target of ₹135. This follows exceptional results in the September quarter where trading profit tripled estimates, leading to a 76% PAT beat. The company has seen robust growth in transmission volume and consequently revised its gas trading guidance upwards.
However, Jindal Steel & Power Ltd (JSPL) received an Underperform rating from CLSA due to disappointing Q2FY24 results and ongoing capacity expansion delays. This comes despite a rise in rebar prices.
In the telecom sector, Bharti Airtel retained its Buy rating from CLSA following Q2 results. The target price was slightly increased to ₹1110 (USD1 = INR83.284). As a leading player in India’s mobile market, Bharti Airtel has reported record Average Revenue Per User (ARPU) and has also seen growth in home broadband and enterprise segments.
InvestingPro Insights
Drawing on real-time data from InvestingPro, we can delve deeper into the financial health and performance of these companies.
For Tata Consumer (TACN), one of the InvestingPro Tips highlights that the company holds more cash than debt on its balance sheet, a reassuring sign for investors. Additionally, it’s noteworthy that the company has a history of consistently increasing earnings per share. With a market cap of $9491.8 million and a P/E ratio of 14.96 as of Q1 2024, Tata Consumer’s financial stability is reflected in its robust performance.
Turning to GAIL India, InvestingPro data reveals a management strategy of aggressively buying back shares, indicating a bullish outlook on the company’s future performance. The company has also maintained dividend payments for an impressive 24 consecutive years. It’s worth noting that GAIL India operates with a moderate level of debt, a factor that might be of interest to risk-averse investors.
Remember, these are just a few of the insights and tips available from InvestingPro. The platform offers comprehensive data and analysis tools for a wide range of companies, helping investors make informed decisions.
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