Stock brokerages including Goldman Sachs, Equirus Securities, Sharekhan and ICICI Securities have come out with research reports on select stocks namely HDFC Bank, Zomato, PowerGrid and GAIL India. Here's what brokerages said about these counters
Brokerage firm Goldman Sachs has a ‘Buy’ rating on HDFC Bank stock with a bull case fair value of Rs 2,051 per share. According to the brokerage, the bank is well poised to gain substantial market share in both lending and deposits over the next few years on the back of an expanding distribution network as well as its strong focus on cross-selling to existing customers while bringing New To Credit/New To Bank customers into its fold
Analysts at Goldman Sachs believe that HDFC Bank will continue to grow its loan book at an 8% CAGR and see better return ratios. They see no requirement for the bank to raise capital at least for the next 8 years on lower capital consumption, driven by improved risk density and improving ROEs. The stock currently trades at 1STDEV below the mean, adjusting for SOTP value for its group businesses, which the brokerage sees as offering a very attractive entry point
Equirus Securities has initiated coverage on Zomato with a December 2024 target price of Rs 135, citing its asset-light business model and 'solid' free cash flow generation. The brokerage said an asset-light balance sheet and Rs 11,500 crore of cash balance would facilitate Zomato’s entry into adjacencies, enabling further value creation
According to analysts at Equirus, Zomato's dominance in the underpenetrated food delivery space should drive a robust 31% sales CAGR over FY23-FY28E, making it one of the fastest-growing players in India’s internet landscape. The brokerage estimates a robust growth of 15% p.a. in monthly transacting users (MTUs) and a modest 3%, 4% CAGR in order frequency and AOV respectively
Brokerage firm Sharekhan has a ‘Buy’ call on PowerGrid stock with a target price of Rs 290 per share. A large addressable power transmission market opportunity makes the brokerage optimistic of a pick-up in Power Grid’s capex/asset capitalisation and earnings growth visibility in the medium term
“PowerGrid has a robust project pipeline worth Rs 48,700 crore and management has guided for a pick-up in transmission capex going forward, which provides earnings visibility for the next couple of years. Thus, we expect a 10% CAGR in PAT over FY23-FY25E and see an upside risk in case of pick-up in capex,” Sharekhan said in its report
Brokerage firm ICICI Securities has a ‘buy’ rating on GAIL India stock with a target price of Rs 154 per share. According to the brokerage, the prospects for GAIL India continue to strengthen and may drive a sustained period of outperformance over the next 2-3 years
According to analysts at ICICI Sec, traction in transmission segment led by an increase in domestic gas production, positive trend in propane prices may continue. Favourable price differentials between Henry Hub and spot LNG are the key triggers for the GAIL. "Our revised EPS estimates for FY24E and FY25E imply a CAGR of 38% over FY23-25E. Valuations of just 7.7x FY25E EPS and 7.1x FY25E EV/EBITDA are attractive and we expect earnings upgrades and multiple re-ratings over the next 12 months," they said
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