Global View: Maruti Suzuki, HDFC Bank and Au Small Finance Bank could give 15-20% return
Indian market trades higher on Tuesday amid 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 market trades higher on Tuesday amid 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:
Maruti Suzuki: Buy| Target Rs 9500
HSBC maintained a buy rating on Maruti Suzuki with a target price of Rs 9500 which translates into an upside of over 22 per cent from Rs 7775 recorded on 4 April.
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The global investment bank expects Q4’ FY22 EBITDA margins to be 9.3 per cent. Commodities price rise led to 75 bps lower EBITDA margins. The company should benefit from new launches.
HDFC Bank: Outperform| Target Rs 2005
Macquarie maintained an outperform rating on HDFC Bank with a target price of Rs 2005 which translates into an upside of over 21 per cent from Rs 1657 recorded on 4 April.
Morgan Stanley in a note highlighted that the proposed merger between HDFC Bank and HDFC Ltd will benefit both via access to long tail loans and funding.
The merger would be EPS-accretive in 1st full year (F25). The return on equity (RoE) could fall in the near-term given capital accretion, but loan growth pickup would imply pre-merger RoE by FY26.
Au Small Finance Bank: Overweight| Target Rs 1510
Morgan Stanley maintained an overweight rating on AU Small Finance Bank with a target price of Rs 1510 that translates into an upside of over 15 per cent from Rs 1309 recorded on 4 April.
AUM growth is likely to remain strong at 14 per cent QoQ & 27 per cent on a YoY basis. The funding cost moved lower on a QoQ basis by 20 bps. Collection efficiency remains strong which is a positive sign.
(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.)
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