Hero MotoCorp, Avenue Supermarts, Vehicle Finance, V-Mart on Motilal Oswal’s ‘Buy’ list; check target prices

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Benchmark indices NSE Nifty 50 and BSE Senxex made new all-time highs yet again today. The Nifty 50 surpassed the 19,400 mark and BSE Sensex jumped above 65,600. Analysts at Motilal Oswal have added Hero Motocorp, Avenue Supermarts (D-Mart), Vehicle Finance and V-Mart Retail to their ‘Buy’ list. “The valuations are far more reasonable today vs its last high in Oct’21. We maintain our ‘Over Weight’ stance on Financials, Capex, Autos and Consumption. In our model portfolio, we are ‘Neutral’ on IT and Healthcare and ‘Under Weight’ on Metals, Energy and Utilities,” said analysts.

Motilal Oswal: Stock to ‘Buy’; check target prices

Hero MotoCorp – Buy – Target Price: Rs 3475

“The stock currently trades at ~15.5x/14.5x FY24E/FY25E EPS. We reiterate our BUY rating with a target price of Rs 3,475 (based on 16x Jun’25 + Rs 231/sh for its stake in NBFC business + Rs 116/sh for its stake in Ather Energy).” said analysts at Motilal Oswal.

Avenue Supermarts – Buy – Target Price: Rs 4200

“DMART added 3 new stores (vs. 10 stores in 1QFY23), taking the total count to 327. It has added 50/40 stores in FY22/FY23 and we expect another 45 new stores to be added in FY24, which are typically back-ended in 2HFY24. This may lead to a store count of 369 by year-end,” said analysts.

Vehicle Finance – Buy – Target Price: Rs 2100

“It has more levers than its peers to deliver a healthier RoA/RoE. We reiterate our BUY rating on all three vehicle financiers viz.: CIFC with a target price of Rs 1,350 (premised on 5.0x FY25E BVPS), SHFL with a target price of Rs 2,100 (premised on 1.4x FY25E BVPS) and MMFS with a target price of Rs 400 (based on 2.5x FY25E BVPS),” said analysts.

V-Mart Retail – Buy – Target Price: Rs 2600

“Adjusting for Unlimited stores, VMart revenues (excluding Unlimited) grew 13% YoY, with revenue/sqft of ~Rs 1700, i.e., 3% lower YoY. The company has opened nine new stores and closed one store in 1QFY24, taking the total store count to 431 stores (437 est),” said analysts.


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