Global View: L&T, DLF, Paytm and Jubilant FoodWorks could give 15-60% return; here’s why

Indian market could consolidate in a narrow range on Tuesday tracking muted trends seen in global markets, but there will be stock-specific action, where global brokerage firms came out with their reports.

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

L&T: Overweight| Target Rs 2,300| Upside 17%

JPMorgan maintained an overweight rating on L&T with a target price of Rs 2,300 that translates into an upside over 17 per cent from Rs 1,953 recorded on 10th January.

The 3Q22E order inflow trend lends hope to guidance maintenance. The global investment bank estimates 12.8%/14.1% YoY core/consol revenue growth and 9.7% core margin driving overall net profit growth of 10% to Rs 24.9 billion.

The global investment bank sees medium-term catalysts underpinned by government capex, and international order pick up. Meanwhile, private capex has room to grow from trough levels, said the note.  

The Company’s solid FCFE (free cash flow to equity) with asset monetization, limited capex and E&C (Engineering & Construction) cash flow growth sets it up for a much due re-rating.

DLF: Overweight| Target Rs 470| Upside 15%

Morgan Stanley maintained its overweight rating on DLF with a target price of Rs 470 that translates into an upside of over 15 per cent from Rs 408 recorded on 10th January.

The company launched its luxury housing project "ONE Midtown" in west Delhi. The global investment bank estimates Rs42-45 billion revenue potential from this project.
 
So far, 30-35% of the stock (two towers) has been released, and Channel checks suggest that the customer response has been good, said the note.

Paytm: Overweight| Target Rs 1,850| Upside 60%

Morgan Stanley maintained its overweight rating on Paytm with a target price of Rs 1,850 that translates into an upside of nearly 60 per cent from Rs 1,158 recorded on 10th January.

December 21 was another strong month across key metrics gross merchandise value (GMV) rose 112% YoY in Dec-21.
 
MTU or monthly transacting users were up 37% YoY to 64.4 million in F3Q22. Total devices deployed increased to 2m vs. 1.6m last month.  

Loans disbursed were Rs 8.6 billion (vs. Rs6.3 billion-Rs6.9 billion in Oct-Nov21).

Paytm on Monday posted over a four-fold jump in loan disbursals from its platform both in terms of numbers and value in the quarter ended December 31, 2021, said a PTI report.

Jubilant FoodWorks: Buy| Target Rs 4,750| Upside 25%

Citigroup maintained its buy rating on Jubilant Foodworks with a target of Rs 4,750 that translates into an upside of over 25 per cent from Rs 3782 recorded on 10th January.

There is further scope to drive pizza consumption. Recent stock price pullback is an enhanced buying opportunity, said the note.
 
Jubilant Foodworks is for long-term investors. “We expect it to deliver healthy medium-term revenue/earnings growth,” added the note.

 (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.)