Global View: Sun Pharma, BPCL, Tata Motors, HPCL could give 20-38% return in next 12 months

Indian markets are likely to trade higher on Tuesday, tracking 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:

Sun Pharma: Buy| Target Rs 1100

CLSA maintained its buy rating on Sun Pharma post December quarter results with a target price of Rs 1100 that translates into an upside of over 31 per cent from Rs 835 recorded on 31st January.

Sustained momentum in specialty business is likely to drive operating leverage. The global investment bank raised FY22-24CL earnings estimates by 1%-5% to reflect the 3Q beat.

Specialty business is likely to be in the driver’s seat, which will dictate its valuation in the near future.

BPCL: Overweight| Target Rs 550

JPMorgan maintained overweight rating on BPCL post December quarter results with a target of Rs 550 that translates into an upside of over 38 per cent from Rs 397 recorded on 31st January.

The company reported strong operating consolidated earnings highlight benefit from BORL (Bharat Oman Refineries Ltd) consolidation. BORL is currently a wholly-owned subsidiary of BPCL.
 
Headline PAT is a miss because of consensus under estimating inventory losses on marketing fuels post excise duty cut. The stock performance is dependent on privatization, said the report.

HPCL: Buy| Target Rs 400

Citigroup maintained a buy rating on HPCL post Q3 results with a target price of Rs 400 that translates into an upside of over 27 per cent from Rs 314 recorded on January 31.
 
The 9M standalone EPS stood at Rs32/sh. Consolidated EPS was higher at Rs37/sh boosted by strong performance in the Bhatinda refinery. HPCL is a preferred OMC pick, said the note.

Tata Motors: Buy| Target Rs 635

Jefferies maintained the buy rating on Tata Motors post Q3 results with a target price of Rs 635 that translates into an upside of over 22 per cent from Rs 518 recorded on 31st January.

Tata Motors reported a consolidated loss of Rs 1,516 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 2,906 crore in the corresponding quarter last year.

Revenue from operations fell 4.5% YoY to Rs 72,229 crore in the period under consideration against Rs 75,654 crore posted last year. EBITDA stood at Rs 6,764 crore, down 41.2% YoY from Rs 11,510 crore posted last year.

(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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