Global View: ONGC, L&T and Sun Pharma could give 19-50% return in next 12 months

Indian market kick started FY 23 on a flat note as benchmark indices opened 0.5% lower on Friday. However,  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:

ONGC: Overweight| Target Rs 250

JPMorgan maintained an overweight rating on ONGC and raised its target price to Rs 250 from Rs 235 earlier which translates into an upside of over 50 per cent from Rs 164 recorded on 31 March.
 

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Reducing policy risks and increase in earnings are key drivers behind the target upgrades. The global investment bank views gas and retail price hike as positive.
 
The risk-to-reward ratio remains favourable for ONGC. The stock trades at 9-10% dividend yield, said the note.

L&T: Overweight| Target Rs 2100

JPMorgan maintained an overweight rating with a target of Rs 2100 which translates into an upside of nearly 19 per cent from Rs 1768 recorded on 31 March.
 
Higher oil is expected to impact growth, said the note. L&T has little exposure to roads and central spending.
 
The global investment bank looks forward to heightened spending on hydrocarbons. L&T has underperformed by 7% YTD and the USD is expected to be a miss on inflows. Order pickup is key to overshadowing margin in the near term.

Sun Pharma: Buy| Target Rs 1150

Citi maintained a buy rating on Sun Pharma with a target price of Rs 1150 which translates into an upside of over 25 per cent from Rs 915 recorded on 31 March.

Speciality trends look encouraging. The global investment bank maintains Sun Pharma as one of the preferred picks.
 
Resilient India business with an improving market share. The valuations are reasonable at 25x 1- year forward consensus EPS.

Disclaimer: The views/suggestions/advice 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.)