Brokerage Views: Bajaj Finance, Vedanta, NTPC, IndiGo are in focus today

Jefferies, JP Morgan and Morgan Stanley have maintained 'buy' or overweight ratings on Bajaj Finance. CLSA has upgraded the NBFC stock to 'reduce' from 'sell'.

Most brokerages are upbeat on Bajaj Finance and NTPC after the announcement of financial results by both Nifty50 companies during the weekend. However, they are divided on the pharma sector.

Here's JPMorgan, Morgan Stanley, CLSA, and Citi make of some of the key stocks today:

Bajaj Finance

Jefferies, JP Morgan and Morgan Stanley have maintained 'buy' or overweight ratings on Bajaj Finance. CLSA has upgraded the NBFC stock to 'reduce' from 'sell'.

Brokerages	Rating	Price Target
CLSA	Reduce	INR 6000
JP Morgan	Overweight	INR 9000
Morgan Stanley	Overweight	INR 8000
Jefferies	Buy	INR 7280
HSBC	Reduce	INR 5460

NTPC

CLSA, Citi, and Jefferies have each maintained a 'buy' on NTPC.

According to CLSA, the company would be a leader in energy transition and is on track for its lofty goal of 60 GW by FY32.

Brokerages	Rating	Price Target
CLSA	Buy	INR 195
Jefferies	Buy	INR 195
CITI	Buy	INR 202

According to CITI, NTPC’s management expects to end FY23 with under-recoveries of Rs 250 crore. Its renewable asset monetisation is in line with the management’s March 2023 guidance, according to the brokerage.

Vedanta

Brokerages like CLSA and CITI are skeptical on Vedanta, with 'reduce' and 'neutral' ratings respectively.

Brokerages	Rating	Price Target
CLSA	Reduce	INR 290
CITI	Neutral	INR 335

Leverage concerns appear to be abating, according to Citi. The company’s dividend outflow for FY23 so far would amount to $3.7 billion, according to the brokerage.

Interglobe Aviation (IndiGo)

JPMorgan maintains an 'overweight' on Interglobe Aviation with a target price of Rs 2,350 apiece. The brokerage expects industry demand-supply to result in a favourable yield.

The overall demand remains robust even at a higher yield, according to JPMorgan.

HDFC AMC

Morgan Stanley has maintained an 'equal-weight' rating on HDFC AMC with a target price of Rs 2,100 apiece. Market regulator SEBI may ask asset managers to pass on some benefits of scale to investors, which could hurt revenue while absorbing certain expenses like GST and brokerage fees, according to the brokerage.

JP Morgan on pharma stocks

The brokerage reinstates an Overweight stance on Sun Pharmaceutical and Cipla each with a target price of Rs 1200 and Rs 1210 apiece, respectively. While it maintains and Underweight rating on Dr Reddy's Laboratories and Lupin each with a target of Rs 3800 and Rs 660 per share, respectively.

DLF