Global View: M&M, Zomato, Piramal Enterprises and Hindalco could give 10-60% return in 12 months

Indian market is likely to retest crucial support levels on Friday, 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:

M&M: Buy| Target Rs 1220

CLSA maintained a buy rating on M&M post December quarter results with a target price of Rs 1220 that translates into an upside of over 40 per cent from Rs 853 recorded on 10 February.

Earnings met expectations. The company reported a strong improvement in consolidated EBIT. Sharp auto margin improvement could be a key catalyst.

The D-Street is keenly awaiting M&M EV launches, said the note.

Zomato: Overweight| Target Rs 150

Morgan Stanley maintained an overweight rating on Zomato post December quarter results with a target price of Rs 150 that translates into an upside of about 60 per cent from Rs 94 recorded on 10 February.

The global investment bank believes that a lack of growth in MTU (Monthly Transacting Users) QoQ and a slowdown in the GOV or gross order value (even after adjusting for lower delivery charges) more than offset the positive from lower burn rates on a QoQ basis.

The global investment bank is of the view that the above-given factors could limit the stock price in the near term.

Piramal Enterprises: Outperform| Target Rs 2850

CLSA maintained outperform rating on Piramal Enterprises post December quarter results with a target price of Rs 2850 that translates into an upside of over 14 per cent from Rs 2496 recorded on 10 February.

Pharma company’s revenue grew 15% YoY with Ebitda margins at 22%. The global investment raised financial services PAT estimates by 9-19% over FY22-24CL.

Hindalco: Buy| Target Rs 655

CLSA maintained a buy rating on Hindalco post December quarter results with a target price of Rs 655 which translates into an upside of nearly 20 per cent from Rs 547 recorded on 10 February.

The management focus shifted to growth from leverage. Higher LME to be partly offset by higher costs and hedging impact. Growth in focus as leverage meaningfully lower, said the report.

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