Stock brokerages including Motilal Oswal, ICICI Securities, IIFL Securities, and Nuvama Institutional Equities have come out with research reports on select stocks namely ICICI Bank, Paytm, NTPC, and Sun TV Network. Here's what brokerages said about these counters
Motilal Oswal has a ‘Buy’ rating on ICICI Bank stock with a target of Rs 1,150 per share. The bank is seeing a strong recovery across segments, while asset quality trends remain healthy with PCR at around 83%, the brokerage noted
“After a strong outperformance backed by robust earnings growth, we estimate earnings growth to moderate to an 18% CAGR over FY23-25, affected largely by a decline in margins and limited levers available on the opex/credit cost front. We expect stock returns to be more moderate for ICICI Bank and many other large-cap banking stocks,” said Motilal Oswal in its report
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Domestic brokerage ICICI Securities has a ‘Buy’ rating on One 97 Communications (Paytm) stock with a target price of Rs 1,055 per share. “We expect profits in FY25E. The positive cycle of customer growth, retention, and cross-sell as shown by the company is going to build confidence and valuation multiples, the brokerage said
ICICI Securities analysts believe that the ability to grow, retain and cross-sell along with a strong balance sheet (Rs 84 billion as of June’23) should give confidence to the investor in the wake of changes in the possible payment landscape. Increasing monetisation of the UPI platform and introduction of credit card in UPI could lead to positive surprises ahead
IIFL Securities has a ‘buy’ rating on NTPC stock with a target price of Rs 213.50 per share. NTPC is set to register 14% p.a. growth in consolidated earnings led by 6-7GW p.a. capacity additions (thermal + RE). Visibility of such growth is high on the defensive revenue model that allows a passthrough of all costs along with a fixed return on regulated equity, the brokerage said
“NTPC’s debtors’ cycle has improved, owing to conscious efforts to collect dues from SEBs, securitisation, etc. Further, plan to scale up its RE project pipeline and monetisation of 100% RE subsidiary can be a key re-rating trigger. NTPC is our top pick for CY23, given the company’s highest PAT growth among peers, strong project pipeline and defensive revenue model. NTPC is also assessing the feasibility of PSHPs at 9 sites. On seamless execution, as tariffs are reasonable, developers can earn 14-18% ROEs,” said IIFL Securities
Brokerage firm Nuvama Institutional Equities has a ‘Buy’ rating on Sun TV Network stock with a target price of Rs 750 per share. The brokerage expects Sun TV to see incremental revenues and EBITDA from IPL to the tune of Rs 2-2.5 billion in Q1FY24. “SUN, like all TV Broadcasters, is likely to see a gradual pick up in ad-revenue and subscription revenues in FY24–25,” it said
“In recent years, subscription revenues have overtaken advertisement revenues. However, with increased viewership, we expect the bandwidth to widen; the advertisement revenue base remains very strong. We expect movies’ revenue to be similar to FY23. Sun’s business model is robust as it helps the company to build strong cash flows. It needs to continue to push against broadcasters, and expand across regions and gain market share,” said Nuvama
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