Global View: HDFC, Eicher Motors, IndusInd Bank and Power Grid could give 19-40% return
Indian market is likely to trade higher on Tuesday amid positive global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.
Indian market is likely to trade higher on Tuesday amid positive 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:
HDFC Ltd: Buy| Target Rs 3050
CLSA upgraded HDFC Ltd to buy from outperform post December quarter results with a target of Rs 3050 that translates into an upside of over 30 per cent from Rs 2297 recorded on 14 February.
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After recording a fall of about 20-30% from highs over the past 12 months, the risk-to-reward ratio has improved significantly.
Valuations adjusted for subsidiaries is back to -1 std. Additionally, improving affordability and a turning real estate cycle remain positives triggers for the stock in the near future, said the report.
Eicher Motors: Buy| Target Rs 3330
CLSA maintained a buy rating on Eicher Motors post December quarter results with a target price of Rs 3330 that translates into an upside of nearly 30 per cent from Rs 2571 recorded on 14 February.
Although Eicher Motors missed estimates, there is stronger visibility on volume, said the note. Royal Enfield's results were below expectations, but the volume outlook is strong.
No plans on entry into an electric motorcycle in the near term. The global investment bank raised our EPS estimates by 8%-9% over FY23-24.
IndusInd Bank: Overweight| Target Rs 1350
Morgan Stanley maintained an overweight rating with a target of Rs 1350 which translates into an upside of over 40 per cent from Rs 942 recorded on 14 February.
The banking industry remains attractive, and the share price is expected to rise over the next 30 days.
There are concerns around MFI portfolio and elevated credit costs. The bank has improved coverage ratio from pre-covid levels which is a positive sign. The stock is trading at a valuation of 10X FY23 P/E.
Power Grid: Overweight| Target Rs 239
Morgan Stanley maintained an overweight rating on Power Grid with a target of Rs 239 that translates into an upside of nearly 19 per cent from Rs 201 recorded on 14 February.
The company has a reasonable near-term earnings visibility. The medium-term outlook has improved.
It will benefit from India’s Energy transition in its core transmission business. The asset monetization should lead to increase dividend payout.
(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.)
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