Stock brokerages have come out with research reports on select stocks namely Bajaj Finance, Dalmia Bharat, Poonawalla Fincorp, and HDFC Asset Management Company (AMC). All the stocks majorly have a positive view on them from the brokerages. Here's what brokerages said about these counters.
"Dalmia Bharat is adding capacity organically and has acquired a JP associates' plant which will aid in future expansion. We expect its revenue and profits to improve by 20-30% CAGR over FY23-25E and have maintained a buy rating with a target price of Rs 2,291," said Religare Broking.
Religare believes government's focus on the sector along with strong demand from housing and infrastructure coupled with capacity expansion and improving utilization will drive growth for the companies in the cement sector. Dalmia will continue to benefit as it has focused on becoming a pan-India player and currently has a strong presence in east, south, and central India.
JM Financial believes Poonawalla Fincorp is exhibiting strong business metrics as it benefits from its digital execution prowess, low-cost liabilities and aided by benign credit environment. It has maintained a buy rating on the stock with a target price of Rs 450 on the stock.
"Poonawalla's cost of funds continues to be one of its core strengths with cost of borrowings rising by 40 bps over last 1 year despite 250bp rise in benchmark rates. With benefits of AAA rating likely to flow through, the company expects to maintain NIMs over 10% for FY24. Asset quality remains in fine fettle with GNPA at 1.44%," JM Financial said.
Prabhudas Lilladher (PL) maintained its 'buy' rating and a target price of Rs 7,835 on Bajaj Finance as its estimates remained unchanged. The impact of rate hikes on the cost of funds is more gradual than anticipated.
"We expect NIM’s to moderate to 11.8% in FY24 from 12.1% in FY23. Management has maintained AUM growth guidance in the corridor of 25%-27% even as competition intensity remains high especially in consumer finance and mortgage segments. Rerating can happen if the company manages to achieve growth guidance and increase stickiness of new to franchise customers," PL said.
ICICI Securities has maintained its add rating on HDFC Asset Management Company (HDFC AMC) with a target price of Rs 1,865 after it reported another steady quarter even as it sees business parameters continue to improve but regulatory overhand weigh on the stock.
"Business metrics showed resilience as marked by improvement in equity market share, unique investor share and better equity fund performance while loss in debt market share could be stemmed with introduction of debt index fund. However, the regulatory overhang of revision in TER quantum and structure pose earnings risks apart from tax amendments related to debt mutual funds, which can impact the fresh flows coming into debt mutual fund schemes," ICICI Securities said
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