Global brokerages see over 20% upside in Paytm, Coforge, Godrej Properties & Birlasoft

Citi has upgraded Paytm to a "buy" from its previous "sell" rating, raising the target price to Rs 900 from Rs 440. The decision comes as regulatory risks surrounding the company now appear to be largely resolved.

Paytm has announced plans to offer default loss guarantees (DLG) in compliance with RBI guidelines to its lending partners in the merchant loans distribution business.

With regulatory concerns and cost checks in place, the company is now expected to focus fully on growth going forward.

Macquarie has maintained its "outperform" rating on Birlasoft, with a target price of Rs 720. The company's revenue performance was in line with expectations, though there was a margin miss due to an onsite ramp-up.

Birlasoft experienced broad-based revenue growth across most verticals, with the exception of the Healthcare sector.

Jefferies has maintained a "buy" rating on Godrej Properties, slightly raising the target price to Rs 3,750 from Rs 3,725. The company delivered a strong beat and exhibited growth acceleration, marking a solid start to FY25.

During the first half (H1), it achieved 51% of its sales guidance, 47% of its cash collections target, and 62% of its deliveries target.

Typically, the second half (H2) is stronger, and management believes this strong H1 performance sets the company up for a significant beat.

With robust demand and accelerated land acquisition, Godrej Properties is positioned to scale faster than the 20-30% growth currently factored in.

JPMorgan has maintained an "overweight" rating on Coforge, raising the target price to Rs 9,600 from Rs 9,300. The company is regaining its status as a growth champion, with expectations that its organic growth momentum will continue.

Additionally, the guidance for organic margins is anticipated to materialize as projected. Cigniti, a key part of Coforge's portfolio, is also showing strong growth, with margins expected to expand by mid-November.

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