Global View: Tech Mahindra, ITC and Cholamandalam Investment could give over 8-32% returns in 12 months
Indian markets are likely to trade higher on Wednesday, 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.
Indian markets are likely to trade higher on Wednesday, 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:
Tech Mahindra: Neutral| Target Rs 2000
JPMorgan maintained a neutral rating on Tech Mahindra post-December quarter results with a target price of Rs 2,000, which translates into an upside of over 32 per cent from Rs 1,506 recorded on 1st February.
The company reported a 4.5 per cent year-on-year (YoY) rise in its consolidated net profit for the December quarter at Rs 1,369 crore while on a quarter-on-quarter (QoQ) basis, profit was higher by 2.2 per cent.
Morgan Stanley maintained its Overweight rating on Tech Mahindra but slashed its target price to Rs 1,980 from Rs 2,100 earlier.
ITC: Overweight| Target 251
Morgan Stanley maintained its overweight rating on ITC with a target price of Rs 251, which translates into an upside of over 10 per cent from Rs 228 recorded on 1st February.
For the second year in a row, the budget kept the Tabacco tax rates unchanged which are positive for ITC. This allays one of the overhangs on the stocks and should increase investor confidence, said the report.
Cholamandalam Investment: Overweight| Target Rs 710
Morgan Stanley maintained the overweight rating on Cholamandalam Investment with a target price of Rs 710 post Q3 results that translates into an upside of over 8 per cent from Rs 654 recorded on 1st February.
The financial services company Cholamandalam Investment and Finance Company has reported a 28 per cent YoY rise in the net profit at Rs 524 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 409 crore in the corresponding quarter last year.
The Net Interest Income (NII) grew 9 per cent on a YoY basis to Rs 1,484 crore against Rs 1,364 crore posted last year. The company's gross NPA declined to 5.85 per cent in Q3FY22 against 6.16 per cent reported in Q2FY22.
(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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