Stock brokerages including Morgan Stanley, Motilal Oswal Financial Services, Prabhudas Lilladher, ICICI Securities and Nuvama Institutional Equities have come out with research reports on select stocks namely State Bank of India (SBI), Mahanagar Gas, Sunteck Realty, Tata Motors and Computer Age Management Services (CAMS). Here's what brokerages said about these counters
Brokerage firm Motilal Oswal has a 'Buy' rating on SBI stock with a target price of Rs 700 per share. "SBI reported 178% YoY growth in net earnings to Rs 16,880 crore (23% beat), mainly propelled by higher treasury income and lower opex. NII declined 4% QoQ (6% miss, up 25% YoY) as margin contracted 27bp QoQ to 3.33% (domestic NIMs at 3.47%)," the brokerage noted
Motilal said, "We broadly maintain our earnings estimates, as other income and opex control offset the NIM moderation. We estimate FY25E RoA/RoE of 1.0%/17.8%. We reiterate our 'Buy' rating with an unchanged target price of Rs 700 (based on 1.1x FY25E ABV + INR206 from subs)."
Brokerage Nuvama Institutional Equities has a 'Buy' call on Mahanagar Gas stock with a one-year target price of Rs 1,411 per share. "Expansion into new gas through UEPL, setting up of the CBG plant and LNG would keep growth aflame. UEPL shall add 1.1mmscmd by FY30E (30% of current volumes). MGL is open to more inorganic growth," Nuvama cited
"MGL shall clock accelerated volume growth of 7–8% YoY for the rest of FY24 led by beneficial KPC recommendation and priority allocation of HPHT gas to CGDs along with initiatives undertaken by the company. We believe MGL's stock shall re-rate as its valuation of 10x (FY25E P/E) is two–thirds of IGL's (16x); 'BUY'," Nuvama stated
Brokerage Prabhudas Lilladher (PL) has initiated its coverage on Sunteck Realty stock with 'Buy' call for a target price of Rs 565 per share. According to the brokerage, "Over last 3-4 years, the company has acquired 25msf in MMR through JDA and JV route. Despite being aggressive in the MMR, cost of acquisition has been quite low at less than Rs 1,000 psf for the portfolio acquired since 2018 (assuming construction spend to be done for JD partners) – a key advantage."
"Adoption of asset light model has enabled the company to acquire scale without straining its balance sheet and this will likely continue in new project additions too. We expect Revenue/EBIDTA CAGR of 83%/123% over FY23-26E. Initiate 'Buy'," PL stated
Morgan Stanley has an 'Overweight' rating on Tata Motors stock with a target price of Rs 711 per share. Although, the brokerage finds the counter 'Attractive', in terms of industry view. Tata has launched its Nexon 2023 facelift. "The company sees this model as a 'flag-bearer' of EV disruption. Keeping its core character unchanged, Tata has made upgrades in design and engineering. Overall, we think Tata remains the leading EV play in Indian PV space," MS stated
ICICI Securities has a reaffirmed 'Add' rating for Computer Age Management Services (CAMS) with a target price of Rs 2,976 per share. "Strategically, the company underlined that significant thrust in ex-MF RTA segment is backed by a suite of capabilities, unique offerings and talented leadership, while the company’s pole position in MF RTA space has also manifested in quality new account wins. The key, however, remains in the ability to monetise the new offerings effectively. We remain enthused by the capability of the company to provide effective digital solutions in capital market and financial services space while Indian AUM growth potential remains a long-term earnings growth driver. Maintain Add," analysts at ICICI Securities said
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