Stock brokerages such as Morgan Stanley, Motilal Oswal, ICICI Securities, and Ashika Stock Broking have come out with research reports on select stocks namely HDFC Bank, Paytm, Chalet Hotels, Coal India. Here's what brokerages said about these counters
Foreign brokerage Morgan Stanley has an ‘Overweight’ rating on HDFC Bank stock with a target price of Rs 2,110 per share. The brokerage believes that HDFC Bank is a compounder available at attractive valuations. It further added that the merger with HDFC Ltd is synergistic
“We remain constructive on India's macro outlook and expect asset quality to remain strong. Loan growth has held up well, and system deposit growth should accelerate as real deposit rates have improved. Credit cost will remain low and help HDFC Bank up-front its distribution expansion,” Morgan Stanley said in its report
Motilal Oswal has a ‘Buy’ rating on Paytm shares with a target price of Rs 1,050. According to the brokerage, Paytm’s business momentum remains robust, and it expects the company to grow at 32% CAGR over FY23-25. “The company maintains quarterly merchant addition run-rate of 1m+ with the total number of devices deployed surging to 7.5m in May’23," it said
"We believe that constant improvement in contribution margin and operating leverage will continue to drive Paytm’s operating profitability. We believe that Paytm is on track to report EBITDA breakeven in 2HFY25. Ability to maintain strong portfolio quality amid rapid disbursement growth, supply overhang from some of the large shareholders, and evolving regulatory environment adversely affecting fintechs remain the key risks to our call," said Motilal Oswal analysts
ICICI Securities has initiated coverage on Chalet Hotels stocks with a ‘Buy’ rating and a target price of Rs 428 per share. According to the brokerage, the total operating cash flow of Rs 22.1 billion over FY24-26E is adequate to fund incremental capex of Rs 17.6 billion over the same period
ICICI Securities said in its report, “We are enthused by the company’s efforts to leverage its existing land parcels to grow its rental portfolio, expand existing hotels and also focusing on new projects such as Delhi Airport/Airoli without spending on land. Key risks include a fall in hotel RevPARs and weak office leasing.”
Ashika Stock Broking has a ‘Buy’ call on Coal India stock with a target price of Rs 260 per share. Coal India growth roadmap is in synergy with the government’s commitment to bring about a transformative change in the power sector by providing 24x7 power supply to all homes. It sets the stage for COAL to achieve strong coal production over the next few years, according to the brokerage
Analysts at Ashika Stock Broking said, “The government’s plans to increase coal production to substitute imports would help CIL to register sustainable volume growth over the next couple of years. Robust domestic demand, enhanced vision of 1bt production, and improved e-auction premium are all set to drive a strong near-term performance. Moreover, valuations are at a steep discount to historical averages and the stock offers high dividend yield,” they said
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