HSBC initiated a buy rating on IIFL Finance and Axis Securities recommended a buy on Hindalco Industries.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Jefferies on oil & gas sector: BPCL, GAIL India
Jefferies downgraded BPCL to underperform from hold and slashed the target price to Rs 310 from Rs 425 earlier.
The global investment bank upgraded GAIL India to buy from underperform and raised the target price to Rs 136 from Rs 105 earlier. The company would be a beneficiary of high crude oil prices.
Opec + production cuts and low US inventories are likely to keep oil prices elevated.
Morgan Stanley on HDFC Bank: Overweight| Target Rs 2110Morgan Stanley maintained an overweight rating on HDFC Bank with a target price of Rs 2110. The disclosed net worth post-merger is lower than estimated.
Margins will be impacted in the near term given excess liquidity drag and incremental CRR imposed by the Reserve Bank of India (RBI).
On a proforma merged basis, the bank alluded to sustainable RoA at 1.9-2.1%. The global investment bank expects FY24-26 underlying earnings growth to be ~18% and RoA to average ~1.9% ~18%.
HSBC on IIFL Finance: Buy| Target Rs 790
HSBC Global Research initiated coverage on IIFL Finance with a buy rating and a target price of Rs 790. IIFL Finance’s resurgent AUM growth and profitability are the result of four critical business pivots.
“We forecast strong returns over FY23-26e – 25% AUM CAGR, 3.5-3.8% RoA, 21-22% RoE, c28% EPS CAGR,” said the note.
“We initiate coverage with a buy rating and a target price of Rs790, valuing the company at 2.3x FY25e consolidated BVPS,” added the note.
Axis Securities on Hindalco Industries Ltd: Buy| Target Rs 545
Axis Securities maintained a buy rating on Hindalco Industries with a target price of Rs 545. Hindalco Industries is a metal flagship company of the Aditya Birla Group.
It is the largest primary producer of aluminium in Asia.
“We now value the company using SoTP with Indian operations at 6.0x 12MF EV/EBITDA target multiple (5.5x earlier), Copper at 5.0x (unchanged), and Novelis at 5.5x (from 5.3x on account of easing can segment destocking and Fed rate hike cycle nearing its end),” said the note.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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