Stocks that share market analysts recommended on August 1, 2023: GAIL India, Bharat Electronics, Indiamart, IDFC First Bank
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Stock brokerages including UBS, Nuvama Institutional Equities, Axis Securities, and Motilal Oswal have come out with research reports on select stocks namely GAIL India, Bharat Electronics, Indiamart, and IDFC First Bank. Here's what brokerages said about these counters
Stocks to buy
Foreign brokerage UBS double-upgraded GAIL stock to 'Buy' from 'Sell' while raising its target price on the stock to Rs 150 from Rs 80 earlier. UBS said GAIL shares are trading at a 50% discount to historical averages and that the consensus is yet to fully appreciate the upside to realised tariffs, the scope of India's improving gas demand and GAIL's pipeline expansion
GAIL India share price target
"A return of the utility nature of the business could lead to a re-rating of the stock, in our view. GAIL is trading at 24%/50% discounts to its 10-year average P/BV and PE, and a deep discount in investment value, making its risk/reward favourable. We double upgrade to Buy and raise our price target from Rs 80 to Rs 150," UBS said
GAIL risk/reward favourable
Nuvama Institutional Equities has a ‘Buy’ rating on Bharat Electronics stock with a target price of Rs 150 per share. It believes that with GoI’s aim of making India self-reliant in the defence space, and an exports hub, the company is favourably placed within the PSUs basket given its intensive product offerings
Bharat Electronics share price target
Bharat Electronics is one of the key beneficiaries of GoI’s clear intent towards defence localisation, along with making India a key player in the global defence value chain. Significant ramp-up in exports, non-defence segment along with meeting its OI/OPMs guidance are key catalysts for the stock going ahead, in our view,” said analysts at Nuvama
Key catalysts for
BEL stock
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Axis Securities has a ‘buy’ rating on Indiamart Intermesh stock with a target price of Rs 3,430 per share. The brokerage note that Indiamart commands a 71% traffic market share and is a clear leader in the subscription-based online B2B segment. It also has a strong pricing power due to its quality offerings for sellers and higher ROI
Indiamart Intermesh share price target
Indiamart has 7mn registered suppliers, and has reported a healthy CAGR of 23%. "With a higher value proposition for the sellers more and more will be willing to pay for listing services. If we assume a higher conversion factor for Indiamart, then the paid suppliers can reach 0.60mn. The factors which will drive conversion are higher ROI for sellers; increase in business enquiries; higher conversion of RFQs to business; ancillary services like logistics and inventory management; and enhanced customer satisfaction with efficient matching engine and analytics,” said Axis Securities
Tailwinds for Indiamart
Brokerage firm Motilal Oswal has a ‘Buy’ rating on IDFC First Bank stock with a target price of Rs 100 per share. The brokerage believes that the lender delivered a steady quarter with healthy growth across key parameters. Strong fee income and lower provisions boosted earnings, which were prudently utilised to increase coverage
IDFC First Bank share price target
“IDFC First Bank has invested well in digital capabilities, branch, and product expansion, and has a presence across retail products. Cost ratios are elevated but will moderate as scale benefits come into effect, while the retirement of legacy high-cost borrowings will aid NII growth. We estimate a 31% CAGR in PPoP over FY23-25, while controlled credit costs will drive a 32% CAGR in PAT over a similar period,” said Motilal Oswal
Positive triggers for
IDFC First Bank
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