Brokerage comment on IndusInd Financial Bank, Dixon Technology, AU SFB, and other hot stocks.
IndusInd Bank is rated “Overweight” by brokerage company Morgan Stanley, Samvardhana Motherson is rated “Buy” by Nomura, and AU Small Finance Bank is rated “Buy” by Morgan Stanley. In the cement industry, CLSA selects Dalmia cement company and UltraTech as its top options.
Overweight, CMP: 1,368 and Targeted Rs 1,725 at Morgan Stanley on IndusInd Bank
IndusInd Bank is rated ‘Overweight’ by Morgan Stanley, with a price objective of Rs 1,725. Consecutive loan growth was robust at 4% compared to 6% QoQ last quarter, while retail deposit growth increased to 5% QoQ from 3.7% QoQ.
Hold rating from Jefferies on Dixon Technologies; CMP: 4,358.15 Goal: 4,550
Brokerage company Jefferies has boosted the price objective for Dixon Technologies from Rs 4,350 to Rs 4,550 while downgrading the stock to ‘Hold’ from ‘Buy’. A rapid market gain has caused the present risk-reward ratio to seem stretched, according to the international brokerage. The order book for EMS (Electronic Manufacturing Services) is impacted by brand owners’ sales budgets. The current high-growth estimate is vulnerable to the current sluggish demand.
Samvardhana Motherson: Purchase | CMP: Rs 85.30 | Nomura Goal: Rs. 105
Samvardhana Motherson has been upgraded by Nomura from “Neutral” to “Buy,” with a price target increase of Rs 90 to Rs 105. It claimed that the price at which the corporation purchased an 81% interest in the Yachiyo 4W business was favourable. Given the tremendous potential of sunroof systems and their introduction into the Japanese market, it was seen to be a smart acquisition. The company’s EPS is expected to increase by almost 7%. Given the potential growth in earnings from recent acquisitions, valuations seem appealing.
Buy | CMP: Rs. 775.80 | Target: Rs. 965 on the AU Small Finance Bank from Morgan Stanley
With a Rs 965 price objective, brokerage company Morgan Stanley maintains its ‘Overweight’ rating on AU Small Finance Bank. Due to withdrawals from one sizable account, the CASA growth in deposits decreased, it was claimed. Management hinted at a progressive hike in CoF, which will, as predicted, have a negative impact on margins.
CLSA on Ceramics Stocks: Buy UltraTech and Dalmia Cement
In the cement industry, Dalmia cement company and UltraTech Cement have been chosen by CLSA as their top choices. Cost reductions and high demand have been adequately priced. Consensus upgrades on current cement prices, costs, and demand run-rate range from 5% to 12%. Most equities are currently trading beyond their past median due to the recent rapid surge.
KPIT Technologies is a buy at Goldman Sachs with a CMP of 1,092.05; Goal: 1,200
Goldman Sachs, a brokerage company, kept a “Buy” rating on KPIT Technologies and projects a price objective of Rs 1200. In Q1FY24, Goldman Sachs anticipates revenue growth of above 5% Quarter-on-Quarter in constant currency. The brokerage prefers KPIT’s exposure to EV and autonomous car R&D spending which is expanding quickly and on pace with those of the major international manufacturers.
Purchase | CMP: 8,458.90 | UltraTech Cement, according to Goldman Sachs. Goal: Rs. 8,720
For a price objective of Rs 8,720, Goldman Sachs has assigned the stock of UltraTech Cement a ‘Buy’ rating. The brokerage company anticipates volume growth in Q1 to be 20%, higher than the 16% GS and 14% street predictions. Goldman still considers UltraTech to be the best investment despite the limited potential it sees in the cement industry. According to the international brokerage, the firm will probably continue to increase its market share.
