Stock brokerages such as JP Morgan, SBI Securities, Motilal Oswal, Nuvama Institutional Equities have come out with research reports on select stocks namely HDFC Bank, Zen Technologies, Piramal Pharma, TCS. Here's what brokerages said about these counters
International brokerage JP Morgan has an 'Overweight' rating on HDFC Bank stock with a target of Rs 2,000 per share. As HDFC - HDFC Bank merger is complete, the brokerage estimates the merged entity to deliver a 17% EPS CAGR over FY23-25E, driven primarily by 16% loan CAGR estimate
According to analysts at JP Morgan, the merger strengthens the retail product proposition at HDFC Bank. “We expect the merged entity to benefit from higher cross-selling opportunities across the group customer base and also benefits to accrue from increasing mortgage penetration among its customers (currently at ~2%) in a residential real estate upcycle,” it said
Domestic brokerage SBI Securites has a ‘Buy’ rating on Zen Technologies shares with a target price of Rs 651 apiece. The current order book provides healthy revenue visibility in the near term. The company has a debt-free balance sheet with cash and cash equivalent of Rs 170 crore as of Mar’23 which is valued at Rs 20 per share, it said
“We expect the revenue and net profit to clock a CAGR of 61.7% and 68.7% between FY23 and FY26E to Rs 925.1 crore and Rs 240.0 crore respectively. The company has a healthy EBITDA margin of 35% which is likely to be sustainable in the near term with an upward bias. The company has guided for 25% net margin on a sustainable basis,” SBI Securities on Zen Technologies
Domestic brokerage Nuvama Institutional Equities has a ‘Buy’ rating on Piramal Pharma shares with a target price of Rs 130. The brokerage expects an improvement in the macro-environment over the next 12 months
“We expect a strong recovery in the overall business in subsequent years on Normalisation of macro headwinds; Capacity expansion; and Cost rationalisation. The proposed Rs 1,050 cr rights issue and better cash inflows are set to de-stress the Balance Sheet,” Nuvama said, adding that they forecast a revenue, EBITDA CAGR of 14% and 61% respectively over FY23–25
Domestic brokerage Motilal Oswal Financial Services has a ‘buy’ rating on Tata Consultancy Services (TCS) stock with a target price of Rs 3,790 per share. According to the brokerage, TCS is well-positioned to withstand the weakening macro environment and ride on the anticipated industry growth, given its size, order book and exposure to long-duration orders and portfolio
“Owing to its steadfast market leadership position and best-in-class execution, the company has been able to maintain its industry-leading margin and demonstrate superior return ratios. We maintain our positive stance on TCS,” said Motilal Oswal
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