Hot Stocks: Brokerages view on Federal Bank, HDFC Bank, Avenue Supermarts and Bandhan Bank

Brokerage firm Citigroup has a buy rating on Federal Bank, Jefferies maintains a buy rating on HDFC Bank, Morgan Stanley recommends an Equal-Weight rating on Avenue Supermarts and Nomura maintains a buy rating on Bandhan Bank.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Citigroup on Federal Bank: Buy| Target Rs 160

Citigroup maintained a buy rating on Federal Bank with a target price of Rs 160 on expectations of net interest margins (NIMs) bottoming out sooner than expected.

Quicker term deposit repricing, scale-up of high-yielding products, and proposed equity infusion should support NIMs in the coming quarters.

The proposed equity infusion during the quarter should provide growth capital. Valuations at

Jefferies on HDFC Bank: Buy| Target Rs 2100

Jefferies maintained a buy rating on HDFC Bank with a target price of Rs 2100. It is amongst the fastest growing and highest ROE in the $100 bn mkt cap club.

The asset growth was led by housing, CRB, and consumption retail. The deposit mobilisation remains key and the franchise is delivering.The global investment bank expects a 17% CAGR in profit, ROA of 1.9%, and ROE of 16%.

Morgan Stanley on Avenue Supermarts: Equal-Weight| Target Rs 3786

Morgan Stanley maintained an Equal-Weight rating on Avenue Supermarts with a target price of Rs 3786. Margin miss for fourth quarter in a row in Q1.

The top-line growth moderated and EBITDA margins were below estimates. Lower demand for better-margin general merchandise and apparel categories remains a key challenge.

Nomura on Bandhan Bank: Buy| Target Rs 270
Nomura maintained a buy rating on Bandhan Bank with a target price of Rs 270. The company reported a weak quarter, and the net profit beat was aided by lower PCR.

NPLs pick-up in 1QFY24, with lower PCR. A pick-up in growth outlook is essential for re-rating.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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