Stock brokerages recently came out with research reports on select stocks namely Tata Motors, Bajaj Finance, Hero MotoCorp and Clean Science & Technology. Tata Motors, Hero MotoCorp and Clean Science received 'Buy' ratings from individual brokers while Bajaj Finance received a 'Sell' recommendations from Investec. Analyst targets on three of these stocks suggest up to 55 per cent potential upside over the next 12 months
Global brokerage firm Nomura India has a 'Buy' rating on Tata Motors with a target price of Rs 508, suggesting a 15% potential upside. Nomura sees JLR volume to rise aided by better chip supplies
"India business has the potential to repay the entire debt by FY25F. This will get support from the Tata Technologies IPO, PLI (Production Linked Incentive) benefits and the second tranche of TPG rise fund (Rs 37,500 crore), in our view," Nomura said while keeping its target price unchanged for the stock
Reliance Securities is positive on Hero MotoCorp, thanks to hopes of recovery in rural demand, focus on premium segment, Hero MotoCorp's market leadership position and attractive valuations post the recent price correction. The brokerage finds the stock worth Rs 3,000, suggesting a 21 per cent potential upside
Hero MotoCorp has the largest dealer network in India. Its rural penetration is strong with a strong brand equity. Rural markets contribute 50% to its volumes. The company’s focus on high end bikes with new launches and foray into EV with new product in FY23 would pay off and would re-establish its valuation multiple, Reliance Securities said
Investec has initiated coverage on Bajaj Finance with a 'Sell' rating and a target price of Rs 4,800 per share, suggesting an 18% potential downside ahead. Listing of its subsidiary Bajaj Housing and possibility of a regulatory push to transition to a bank could lead to de-rating on the counter, the brokerage said
"We see challenges including size is a constraint, competition picking up in unsecured credit, barriers to entry in unsecured shrinking, its super normal profits in the unsecured may not be sustainable and incremental capital allocation is happening in lower RoE segments," Investec added in its report
JM Financial sees a 55% rise in Clean Science and Technology. The brokerage has a 'Buy' rating on the stock with a target price of Rs 2,255. JM Financial believes that valuations have turned attractive amid the pessimism built around overall margin contraction
JM Financial said Clean Science will be able to get away with 2% contraction, resulting in 26% Ebitda CAGR over FY23-25. Its optimism stems from belief of Clean Science making 48% gross margin in HALS in FY25E and gradually ramping it up to 56% by FY28E
Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position