Brokerage Reports: 4th January 2024
HSBC’s on Adani Ports:
– Target: ₹1,250.
– Earlier Target: ₹920.
– Recommendation: Buy.
– Brokerage Radar:
– A favorable Supreme Court verdict is anticipated to simplify further refinancing strategies.
– HSBC believes that with one more acquisition, ADSEZ will reach its 500mmt target by FY25.
– Adjustments have been made to ADSEZ’s FY24E throughput, now at 411mmt, and FY24-26E profits, revised by 1-2%.
– The Return on Invested Capital (ROIC) is projected to grow from 13% in FY23 to 17% by FY26.
JPMorgan’s updated ratings and target price adjustments for select IT sector companies are as follows:
– TCS: Shifted from underweight to neutral; Target price raised from Rs.2,900 to Rs.3,700.
– Infosys: Moved from neutral to overweight; Target price increased from Rs.1,400 to Rs.1,800.
– HCL Tech: Transitioned from underweight to neutral; Target price raised from Rs.1,070 to Rs.1,520.
– L&T Tech: Upgraded from underweight to overweight; Target price adjusted from Rs.3,200 to Rs.5,800.
– Persistent: Switched from underweight to neutral; Target price lifted from Rs.4,700 to Rs.7,000.
– Mphasis: Upgraded from underweight to neutral; Target price adjusted from Rs.1,700 to Rs.2,700.
– Wipro: Maintained underweight status; Target price increased from Rs.370 to Rs.420.
– Tech Mahindra: Kept underweight rating; Target price raised from Rs.1,000 to Rs.1,150.
– LTIMindtree: Retained underweight status; Targewt price adjusted from Rs.4,100 to Rs.5,500.
AMSEC’s outlook on the hospital sector is as follows:
– Max Healthcare: Recommended as a buy with a target price set at Rs.774.
– Global Health: Recommended as a buy with a target price set at Rs.1,099.
– Rainbow Children’s: Recommended as a buy with a target price set at Rs.1,348.
– KIMS: Suggested as an accumulate with a target price of Rs.2,138.
The hospital industry is intricate but anticipates strong growth. The upward revenue and profitability trends observed over the last two years are projected to persist. There’s optimism regarding a favorable case mix and increased ARPOBS. Furthermore, the valuation prospects for the hospital sector appear promising.
KRChoksey’s on Jio Financial is as follows:
– Initiated a buy recommendation with a target price of Rs.290.
– Anticipates Jio Financial to secure all necessary approvals and licenses within the coming six months.
– The significant customer base, with 25 crore in retail and 46 crore in telecom, positions the group for substantial growth in the medium term.
– The lending business is projected to showcase an AUM of Rs.4,600 crore by FY 24E.
– Once licensed and launched, the AMC business is expected to have an AUM around Rs.2,330 crore by FY 24E.
JPMorgan’s revised stance on Tata Motors is as follows:
– Upgraded from neutral to overweight; Target price adjusted from Rs.680 to Rs.925.
– Anticipates improved margins and FCF performance at JLR.
– Foresees JLR benefiting from global luxury OEMs emphasizing profitability over volume, leading to enhanced margins.
– Notes Tata Motors’ resilient market position in the Indian PVS segment, even with competitors introducing new launches.
– Highlights the balance sheet deleveraging, expecting it to minimize EPS fluctuations and potentially boost the stock’s valuation.
Equirus’ on Hero MotoCorp:
– Downgrading from long to add; Target price raised from Rs.3,557 to Rs.4,035.
– Maintaining optimism for a cyclical rebound in 2W demand.
– Expressing concerns about unfavorable valuations following a recent surge.
– Highlighting potential discomfort due to a potential weak 2024 summer wedding season.
– Noting a decrease in the number of wedding days from April to June compared to the previous year.
Morgan Stanley’s on Indusind Bank:
– Target: Set at ₹1,850.
– Loan Growth: While the loan growth remains robust, there’s a noticeable moderation in the quarter-on-quarter growth.
– Deposits: Growth in deposits from retail customers remains strong.
– Recommendation: Rated as Overweight.
– Loan-to-Deposit Ratio: Stands at 88.6%, slightly up from 87.7% quarter-on-quarter.
– Focus Ahead: The upcoming results will emphasize loan mix, margin progression, and asset quality.
Citi’s on Indusind Bank:
– Target: ₹1,630.
– Recommendation: Buy.
– Loan Growth: Falls within the projected range of 18-23%.
– Advances Growth: Likely driven by retail advances and the small to mid-sized corporate segments.
– Loan-to-Deposit Ratio (LDR): Expanding due to faster advances growth compared to deposits.
– Expectations: Anticipate consistent Net Interest Margins (NIMs), Return on Assets (ROA), and Return on Equity (ROE) with figures exceeding 4.2%, 1.8%, and 15%, respectively.
Morgan Stanley on Delhivery:
– Target: ₹455.
– Recommendation: Overweight.
– Brokerage Radar:
– Delhivery is anticipated to command a premium over peers, given that competitors are trading at EBITDA multiples of 18-22x.
– Adjusted EBITDA estimates have been revised downwards, with the belief that business margins will stabilize.
– The express parcel business is expected to sustain healthy year-on-year growth rates.
Morgan Stanley on Indian Hotels:
– Target Price (TP) increased from Rs 450 to Rs 490.
– Predicts ongoing double-digit growth in the hotel industry in the third fiscal quarter.
– Standalone occupancy rates (ORs) are at some of their highest levels.
– The performance of Ginger Mumbai and Revenue Per Available Room (RevPAR) trends are crucial indicators.
Macquarie Analysis on Restaurants:
– Expectations of a continued downturn in earnings per share (EPS).
– Jubilant Food: Underperform rating and TP reduced to Rs 325.
– Westlife: Outperform rating and TP lowered to Rs 1010.
Nomura Analysis on Bajaj Finance:
– Buy recommendation with a TP of Rs 9500.
– Notable performance in the third quarter across various metrics.
– The customer base showed year-on-year and quarter-on-quarter growth rates of 22% and 5% respectively.
– New loan issuance saw a 26% y-y increase, totaling 9.86 million in 3Q.
– Assets Under Management (AUM) increased by 35% y-y and 7% q-q.
– The quarter witnessed the highest ever new customer addition at 3.85 million.
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