Valentine’s Day 2023 special stocks: RBL Bank, Aurobindo, Vodafone Idea, Paytm, IRCTC and more

Valentine’s Day 2023 Special Stocks: On Valentine’s Day 2023, Zee Business brings you a special edition of ‘Love Me or Hate Me’ – wherein analysts recommend shares to buy or avoid.

RBL Bank

Love Me (Positive) – The small-cap private lender has reported splendid earnings during the December quarter. The bank’s management in a post-earnings conference call was confident of a turnaround.

With respect to valuations, the bank is also aiming to improve its return on asset (ROA) to 1 per cent in the fourth quarter from 0.75 per cent at present and it has a price-to-book value of 0.8.

Most brokerages after strong Q3 results have given long targets on RBL, and management’s stability could also be a trigger for the bank’s turnaround toward growth.

Hate Me (Negative) – The company is known for its unitability and for volatility in the stock price. The bank’s credit growth is lower than the industry standards. The RoA in Q4 may improve but after that growth is expected to be either slower or dull. Also, the continuous change in management upsets the investors of RBL Bank.

Aurobindo Pharma

Love Me (Positive) - The company has staged improvement in revenue across segments, with the gross margin rising on both year-on-year and quarter-on-quarter bases. The management's commentary is positive, driven by a strong rebound in its US income, according to Zee Business research.

Citi has a 'buy' rating on the stock with a target price of Rs 660.

Hate Me (Negative) - Cost pressure is likely to remain a concern for the company with a worse-than-expected margin in the quarter ended December 2022, according to Zee Business research.

Growth in the complex category remains slow, according to the research.

Macquarie has an 'underperform' call on the stock with a target of Rs 430.

IRCTC

Love Me (Positive) – IRCTC reported a better-than-expected set of earnings for the quarter ended December. The tourism industry continues to recover from the depths of the pandemic owing to a healthy festive season.

Analysts are positive on IRCTC's expansion plans in its Rail Neer unit.

Hate Me (Negative) – The company's online catering business faces direct competition from private players, triggering concerns about a switch in the company's position from monopoly to oligopoly.

Dixon Tech

Love Me (Positive) – Dixon Tech, a leading electronics manufacturing company, accounts for 35 per cent of demand for LED TVs in India, according to Zee Business research. The company is set to be a key beneficiary of the government's production-linked incentive (PLI) scheme.

Jefferies has a 'buy' call on Dixon with a target of Rs 4,840.

Hate Me (Negative) – The company has reduced its revenue guidance to Rs 12,200-12,700 crore from Rs 15,000 crore. Concerns remain among investors about the company's demand prospects.