Nomura has provided updates on its stock ratings, showing a mixed stance on key companies.
Nomura on Balkrishna:
- Nomura has upgraded its rating on Balkrishna Industries to Buy from Neutral.
- The target price has been set at ₹3,242/share.
- Key reasons for the upgrade include:
- A likely earnings upcycle due to stronger H2FY25.
- Attractive valuations, with the stock trading at 14x FY27 EV/EBITDA.
- Nomura expects the company to achieve a 10% global market share (currently at 6–7%).
- Sustainable market share gains are foreseen in both India and the US.
Nomura on ACC:
- Nomura maintains a Reduce rating on ACC with a target price of ₹1,920/share.
- Key observations include:
- Q3 cement volumes grew by 20% YoY to 10.7 MT, surpassing expectations of 11% YoY growth.
- However, unitary EBITDA was the weakest in Q3, and duty refunds masked the performance.
- Blended realizations moderated 1% QoQ and came in 2% below estimates.
- The brokerage notes weaker profitability despite strong volume growth.
Disclaimer: This article is based on information provided by Nomura and is for informational purposes only. Business Upturn does not recommend buying, selling, or holding any stock. Please consult a financial advisor before making investment decisions.
