Share market analysts' recommendations on May 18, 2023: Bank of Baroda, PVR INOX, Metropolis Healthcare, HPCL

Produced by: Harshita Tyagi
Designed by: Mohsin Shaikh

Stock brokerages namely Sharekhan, BNP Paribas, Motilal Oswal and Elara Capital have come out with research reports on select stocks namely Bank of Baroda, PVR INOX, Metropolis Healthcare, HPCL. Here's what brokerages said about these counters

Stocks to buy or sell

BNP Paribas has a ‘buy’ rating on Metropolis Healthcare stock with a target price of Rs 1,600. According to analysts, the valuations are reasonable, and it expects the company’s core revenue growth to be in double digits by FY25

Metropolis Healthcare

Factoring in the loss of a large PPP contract, BNP Paribas trimmed Metropolis Healthcare’s FY24-25E revenue by 3-4% and EBITDA by about 4%. However, the cut in EPS is higher at around 9% due to a higher depreciation charge. As a result, it lowered the TP to Rs 1,600 from Rs 1,700 earlier

Loss of large PPP contract

Elara Capital has a ‘accumulate’ call on Bank of Baroda stock with a target price of Rs 196. It believes that BoB management actions are yielding results, and the lender has all the ingredients to sustain this performance. Continued delivery on core performance would drive a rerating, it said

Bank of Baroda

According to the brokerage, Bank of Baroda’s NIMs have peaked out, and one can expect a moderation hereon as deposit cost rise may supersede yield benefits even as the loan mix change and some repricing on MCLR may offer some cushion

Moderation in NIMs

Sharekhan has a ‘Buy’ call on HPCL stock with a revised target price of Rs 300, given attractive valuation of 3.8x/1x FY25E EPS/BV and FY24E dividend yield of ~9%. It has lowered its FY24-25 earnings estimate by 5-7% to factor FY23 P&L and balance sheet numbers and slightly lower GRM assumption

HPCL

According to Sharekhan, normalisation of crude oil price and potential recovery in GRMs would drive earnings revival for OMCs over FY24-25. However, sustained weak auto fuel marketing margin in case of continued inability to raise petrol/diesel price and lower-than-expected refining margins remain a key risk to earnings and valuation

Crude oil price normalisation to drive earnings

Motilal Oswal Financial Services has a ‘Neutral’ rating on the stock with a target price of Rs 1,570. A healthy content pipeline, coupled with expected 150-175 screen additions annually should aid revival in the coming period, the brokerage said

PVR Inox

While Motilal Oswal expects some recovery in the business from FY24 onward. The level of recovery in both occupancy and ad revenue amid the increasing threat from deep-pocketed OTT players remains a key monitorable for growth, it said

Recovery in biz likely

Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position

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