Global View: SBI, Tata Steel, Paytm and Bank of Baroda could give 20-50% return
Indian market is likely to consolidate on Monday, 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.
Indian market is likely to consolidate on Monday, 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:
State Bank of India: Buy| Target Rs 750
CLSA maintained buy rating on SBI post December quarter results with a target price of Rs 750 that translates into an upside of over 40 per cent from Rs 530 recorded on 4 February.
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The global investment bank expects a Return on Equity (ROE) of 15 per cent, and it remains one of the top portfolio pick. SBI is clearly in an undershooting credit cycle, said the note.
Paytm: Buy| Target Rs 1460
Goldman Sachs upgraded one 97 Communication (Paytm) to buy from neutral post Q3 results and slashed target to Rs 1460 from Rs 1600 which still translates into an upside of over 50 per cent from Rs 953 recorded on 4 February.
The global investment bank sees a strong growth outlook, and the risk-to-reward ratio seems to be attractive at the current market price.
There are multiple headwinds including MDR caps, a decline in market share for Paytm, & a significantly slower ramp-up of co’s financial services.
The company has a strong topline growth of 89 per cent on a YoY basis in 3Q (11% of ahead of GSe) that will help allay investor concerns around declining payments.
In addition, Paytm continues to gain market share across both UPI & non-UPI segments which is a positive sign.
Bank of Baroda: Buy| Target Rs 130
Nomura upgraded Bank of Baroda to buy from neutral post December quarter results with a target price of Rs 130 that translates into an upside of over 20 per cent from Rs 106 recorded on 4 February.
The December quarter number were beat on all parameters. The 3Q beat core PPOP (+21.7% y-y) was driven by better-than-expected NIM & marginally better loan growth Credit cost was also lower than estimates.
Tata Steel: Buy| Target Rs 1820
CLSA maintained a buy rating on Tata Steel post December quarter results with a target price of Rs 1820 that translates into an upside of over 50 per cent from Rs 1176 recorded on 4 February.
The 3Q Ebitda was largely in line. India's profitability surprises were positive, but Europe's profitability got impacted by higher energy costs.
(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.)
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