Dixon Tech, ICICI Securities & more: Top stocks on broker's radar for May 22

BNP Paribas India has retained its outperform rating on Dixon Technologies with the target price at 17,910. Analysts said the company delivered a remarkable FY25 with revenues more than doubling while maintaining balance-sheet strength, high fixed-asset turnover, high return on equity and strong operating cash flow generation. While Dixon continues to inch towards capturing a large part of the domestic mobile-phone total addressable market and the bigger export opportunity, it is evaluating partnerships for non-semiconductor components, apart from display manufacturing They expect such forays to ensure customer stickiness and boost the company’s margin profile, offsetting the impact of the discontinuation of the mobile PLI scheme by the govt.

Elara Securities India has an accumulate rating on Bharat Electronics with the price at Rs 400. Analysts said the company surprised on the positive in FY25, reaching the highest margins in its history. Its products also demonstrated proven capabilities during the recent India-Pakistan conflict, resulting in export inquiries. Analysts raised the target price due to battle-proven product portfolio, strong order visibility that was further bolstered by export opportunities, along with potential for surprise on margin on the upside.

Emkay Global Financial Services has upgraded Hindalco to reduce from sell, and raised the target price to Rs 650 from Rs 600 earlier. Analysts said with major concerns largely priced in and a structurally positive outlook on LME aluminium, a sell rating was no longer warranted. The company posted a strong Q4 with business EBITDA of Rs 9,770 crore, which was above estimates. It was driven by robust aluminium upstream performance on lower input costs and better realization. Hindalco’s strong Jan-March numbers and improved cost outlook, supported by captive coal and lower alumina costs, reinforced its upstream EBITDA-per-tonne growth potential.

ICICI Securities has an add rating on ICICI Securities with the target price at Rs 5,450. Analysts said Pfizer’s Jan-March outperformance was driven by a strong beat in EBITDA margins. They said its revenue growth for the quarter was likely driven by key brands such as Prevenar-13, Becosules, Minipress-XL and Mucaine. In Feb’25, Pfizer had out-licensed key CNS brands Ativan and Pacitane for five years to Mylan, which may also have helped Pfizer trim its overhead cost during the quarter. Besides, sale of its Thane land to Zoetis Pharma is expected to further improve its cash balance.

Motilal Oswal Financial Services has a neutral rating on Siemens with the target price at Rs 3,200. The company in its analyst meeting highlighted its continued focus on improving margins as volumes improve across segments. Analysts said the company’s smart infrastructure is benefiting from improved demand and the digital industries segment seems to be bottoming out in terms of demand weakness. Its mobility segment volumes will improve as locomotive delivery commences after a few quarters. The company intends to increase the share of exports in both smart infrastructure and mobility.

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