Global View: TVS Motor, Tata Steel, Hindalco and PI Industries could give 10-40% return in 12 months
Indian market is likely to consolidate on Tuesday, 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 Tuesday, 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:
TVS Motor: Outperform| Target Rs 711
CLSA upgraded TVS Motor to outperform post December quarter results and raised the target price to Rs 711 from Rs 656 earlier that translates into an upside of over 11 per cent from Rs 637 recorded on 7 February.
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The company managed to maintain their margins despite rising costs which is a positive sign. Higher net realisations led to EBITDA beat in Q3. Going forward, the global investment bank is of the view that export demand to remain strong.
Tata Steel: Buy| Target Rs 1750
CLSA maintained its buy rating on Tata Steel post December quarter results but slashed its target price to Rs 1750 from Rs 1820 earlier which still translates into an upside of over 47 per cent from Rs 1183 recorded on 7 February.
Deleveraging may continue despite Capex uptick. The global investment bank is of the view that valuations at a trough, and the stock is trading at 4.5x FY23 EV/Ebitda.
Hindalco: Buy| Target Rs 620
CLSA maintained its buy rating on Hindalco post December quarter results with a target price of Rs 620 that translates into an upside of over 18 per cent from Rs 523 recorded on 7 February.
High-cost weigh on Novelis margin. Novelis profit weakened on supply chain and energy cost inflation.
Energy costs are high but can be offset by cost pass-through & better pricing, said the note. The company has the most resilient earnings in CLSA covered stocks.
PI Industries: Outperform| Target Rs 3000
Credit Suisse maintained outperform rating on PI Industries post December quarter results but raised the target price to Rs 3000 from Rs 2800 which translates into an upside of over 15 per cent from Rs 2605 recorded on 7 February.
Diversification into other chemical segments is likely to be the next re-rating trigger. PI expanding technical capabilities and is entering new segments to expand the addressable market and increase Capex efficiency which are key positives.
(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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