Indian market opened higher on Monday as benchmarks extended gains for the fifth straight session amid mixed global cues.
Indian market opened higher on Monday as benchmarks extended gains for the fifth straight session amid mixed global cues. There will also 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:
HDFC Bank: Buy| Target Rs 2025
CLSA maintained a buy rating on HDFC Bank with a target price of Rs 2025 that translates into an upside of over 40 per cent from Rs 1397 recorded on 11 March.
Commercial and rural a key growth engines for the bank. The market share and growth prospects remain strong in the SME space.
Strong profitability with a good asset quality track record augers well for the private sector lender. RBI lifts ban related to Digital 2.0 launch which is positive.
Escorts: Buy| Target Rs 2196
CLSA initiated a buy on Escorts with a target price of Rs 2196 which translates into an upside of over 20 per cent from Rs 1818 recorded on 11 March.
Escorts is a play on a recovery in the tractor cycle segment. The global investment bank expects strong growth (an 11% EPS Cagr in FY21-24) over the next 3 years, led by a revival in tractor volumes.
We believe growth in construction and railways business which is not priced in Kubota investment to open multiple growths, said the note.
IndusInd Bank: Overweight| Target Rs 1350
JPMorgan maintained an overweight rating on IndusInd Bank with a target price of Rs 1350 that translates into an upside of nearly 50 per cent from Rs 902 recorded on 11 March.
Growth will be a key factor to watch from hereon. The management gave a positive outlook on the loan growth.
FY23 onwards will return to normalized credit cost of 130-15- bps. IndusInd Bank ROEs will reflate back to 15-16% levels from FY23 onwards, said the note.
The valuations at 1.3X FY23 PBV are supportive.
