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New Delhi: Jefferies remains positive on while CLSA maintains buy on M&M. Morgan Stanley, meanwhile, was underweight on but overweight on L&T. Another global brokerage maintains hold rating on select industrial stocks.
Jefferies remains positive on Bandhan Bank and has a target price of Rs 430 on the lender even as the collection efficiency dropped 200 basis points on a quarterly basis to 97 per cent in June 2022.
The lender is equally impacted by seasonality and Assam Floods, whereas the loans that exited moratorium & collections have not stabilized yet, said the brokerage. Loans grew 20 per cent on a yearly basis but dropped 3 per cent on a quarterly basis.
Brokerage firm CLSA has maintained a buy rating on Mahindra & Mahindra (M&M) with a target price of Rs 1,468 as SUV business valuations shot up. It continues to remain its top pick from the sector.
However, Morgan Stanley maintained its underweight rating on Tata Power with a target price of Rs 175 on the counter as the company focused on transforming into a consumer-oriented clean energy company.
The company targets to achieve more than 20 GW of renewable energy capacity by 2030, it said. "80 per cent and 17 per cent of capex over the five next year would be used towards clean energy," it added.
On the other hand, the brokerage remains overweight on L&T with a target price of Rs 1,848 as the margin upside is likely given the steel price correction.
"One-third of L&T's backlog is a fixed price contract and there could be upside risk of margin guidance", said Morgan Stanley. However, the upside might be capped if the steel price trends were to continue, said the brokerage.
Another global brokerage firm HSBC has maintained its hold rating on industrial counters including India, and Cummins with a target price of Rs 2,250 and Rs 2,270 apiece, respectively, for the first two.
Decarbonisation and energy efficiency are driving the new capex cycle, said HSBC.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Jefferies remains positive on Bandhan Bank and has a target price of Rs 430 on the lender even as the collection efficiency dropped 200 basis points on a quarterly basis to 97 per cent in June 2022.
The lender is equally impacted by seasonality and Assam Floods, whereas the loans that exited moratorium & collections have not stabilized yet, said the brokerage. Loans grew 20 per cent on a yearly basis but dropped 3 per cent on a quarterly basis.
Brokerage firm CLSA has maintained a buy rating on Mahindra & Mahindra (M&M) with a target price of Rs 1,468 as SUV business valuations shot up. It continues to remain its top pick from the sector.
However, Morgan Stanley maintained its underweight rating on Tata Power with a target price of Rs 175 on the counter as the company focused on transforming into a consumer-oriented clean energy company.
The company targets to achieve more than 20 GW of renewable energy capacity by 2030, it said. "80 per cent and 17 per cent of capex over the five next year would be used towards clean energy," it added.
On the other hand, the brokerage remains overweight on L&T with a target price of Rs 1,848 as the margin upside is likely given the steel price correction.
"One-third of L&T's backlog is a fixed price contract and there could be upside risk of margin guidance", said Morgan Stanley. However, the upside might be capped if the steel price trends were to continue, said the brokerage.
Another global brokerage firm HSBC has maintained its hold rating on industrial counters including India, and Cummins with a target price of Rs 2,250 and Rs 2,270 apiece, respectively, for the first two.
Decarbonisation and energy efficiency are driving the new capex cycle, said HSBC.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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