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Jefferies has initiated its coverage of recently listed ITC Hotels with a ‘buy’ recommendation with a target price of Rs 240 (+37%). Analysts feel the company is seeing continuation of the long tenured hotels management team and post demerger, they believe that the independent new existence will help improve focus on return/growth. ITC Hotels is the second biggest listed hotelier, has an owner/operator model, a net cash balance sheet with diversified brand and geographical presence.
Axis Securities has a ‘buy’ rating on Varun Beverages with a target price of Rs 710 (+33%). In Oct-Dec quarter, the company delivered a strong performance, driven by a robust volume growth, fuelled by expanded international operations. The company successfully raised Rs 7,500 crore through a QIP for debt repayment and acquisitions. Analysts expect Varun Beverages to continue its strong growth momentum in the mid- to long-term.
Elara Securities India has an ‘accumulate’ rating on Berger Paints with a target price of Rs 505 (+4%). Analysts said the company continues to gain market share, driven by its new go-to-market strategies in urban areas, particularly in exterior paints, wherein it holds a competitive edge. They reiterated their ‘accumulate’ rating as the company has a scope to expand its market share and counter potential losses from new entrants. However, key risks include a prolonged slowdown in the paint industry and heightened competitive intensity.
ICICI Securities has a ‘buy’ recommendation on Jubilant Foodworks with an updated target price of Rs 780 (+22%), up from Rs 700 earlier. Analysts met the company’s MD. They feel the top strategic priorities for the company include self-help initiatives to drive growth (irrespective of external demand conditions); Expanding presence across markets; Investments towards technology to enhance customer experience and operational excellence; Driving customer acquisition/retention by enhancing delivery experience and in-house app ecosystem; Diversifying its product portfolio (accelerated new product innovation) to meet changing consumer preferences; maximising store-level profitability through operational efficiency, and investing in food parks to drive value and improve supply chain capabilities.
Emkay Global Financial Services has a ‘reduce’ recommendation on Devyani International with a target price of Rs 170 (+2%). Analysts said the company’s Oct-Dec numbers were largely in-line, as better than expected international business performance helped offset the miss in India business. Given the tax relief in the Budget, initial recovery signs in states impacted by geo-political issues (Kerala/West Bengal/Assam), and cost-saving initiatives, the company expects EBITDA growth revival for its India business in FY26. While a growth turnaround is built into the analysts’ estimates, they await initial recovery trends before turning constructive
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