Hot Stocks: Brokerages on IndusInd Bank, ICICI Bank, Axis Bank and Tech Mahindra

Global brokerage firm Macquarie remains bullish on private banks such as HDFC Bank and Indusind Bank, Jefferies has a buy rating on Indusind Bank, Citi remained neutral on Tech Mahindra.

While raising target prices across banks, Macquarie said that low credit costs continue to drive multi-year Return on Assets (ROAs). It added that the upgrade cycle continues and raised EPS by 3-9% for FY23E-25E.

It further said that core PPOP (Pre-provision Operating Profit) growth will have a sustained fall. HDFC Bank and Indusind bank are its top picks.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Macquarie on Axis Bank: Neutral | Target increased to Rs 940

Macquarie on ICICI Bank: Outperform | Target increased to Rs 1,145

Macquarie on Indusind Bank: Outperform | Target increased to Rs 1,510

Citi on Tech Mahindra: Neutral | Target Rs 1120

Citi maintained a Neutral rating on Tech Mahindra with a target price of Rs 1,120. The brokerage firm said that it expects a favourable stock price reaction with the appointment of Mohit Joshi.

“Real test of performance will start next CY once Joshi assumes the CEO role. The brokerage takes a neutral stance on the stock given industry view is cautious in tough macro,” said the note.

Jefferies on Indusind Bank: Buy | Target Rs 1550
“The CEO term extension is tad shorter than sought,” Jefferies said in a note. It said that it sees this as a reasonable time to demonstrate progress and the valuations are attractive 1.4X FY24E PB.

It said that Indusind Bank remains its top buys with a new target price of Rs 1,550.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)