Global View: Bajaj Finance, ICICI Prudential, L&T Technology and Newgen Software could give 13-23% return

Indian markets are likely to consolidate on Wednesday tracking muted global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

ICICI Prudential: Buy| Target Rs 750

CLSA maintained a buy rating on ICICI Prudential post Q3 results with a target price of Rs 750 that translates into an upside of over 23 per cent from Rs 608 recorded on 18th January.

The company has reported a 2% YoY rise in profits at Rs 311 crore for the quarter ended December 31, 2021.

Annual Premium Equivalent (APE) growth needs to pick up. In retail, protection challenges continue but higher retention, said the note.

Bajaj Finance: Overweight| Target Rs 9060

Morgan Stanley maintained an overweight rating on Bajaj Finance post Q3 results with a target price of Rs 9060 that translates into an upside of nearly 17 per cent from Rs 7,744 recorded on 18th January.  

The leading financial services company on Tuesday reported an 85% YoY jump in the consolidated profit at Rs 2,125 crore for the quarter ended December 31, 2021.

Pre-provision operating profit (PPOP) of 5 per cent was ahead of estimates. However, credit costs at Rs2.5bn were 240bp, much higher than MSe of 150bp, with 55bp being provisioned for 3rd wave risks.
 
FY22 credit cost guidance was raised by Rs 5-7 billion. Valuations are not cheap, but earnings momentum keeps us overweight, said the note.

L&T Technology Services: Outperform| Target Rs 6150

CLSA maintained outperform rating on L&T Technology Services with a target price of Rs 6150 post Q3 results that translates into an upside of over 13 per cent from Rs 5420 recorded on 18 January.

L&T Technology Services reported an 8.3% QoQ rise in the consolidated profit at Rs 249 crore for the quarter ended December 31, 2021.

The company recorded a soft quarter as revenue was below expectations. Margins and growth were largely impacted due to a lower number of working days & higher leaves, compared to past trends. Attrition is likely to stabilize from 4Q.

Newgen Software: Buy| Target Rs 770

Jefferies maintained a buy rating on Newgen Software but slashed its target price to Rs 770 from Rs 790 earlier that translates into an upside of over 23 per cent from Rs 624 recorded on 18 January.

The 3Q disappointed due to lower-than-expected revenue growth (+9% YoY). Profits up 35 per cent on a YoY basis ahead of estimates due to higher other income and lower tax rate.
 
The global investment bank slashed estimates by 3-7%, and expects it to deliver 19 per cent EPS CAGR over FY22-24.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)