Hot Stocks: Brokerage view on M&M Finance, Jubilant FoodWorks, Tata Technologies, TCS and HCL Tech

Brokerage firm CLSA upgraded TCS, HCL Technologies and Tech Mahindra ahead of March quarter results, while JPMorgan has an underweight rating on Tata Technologies, BofA upgraded Jubilant FoodWorks to buy and Nomura recommends a reduce rating on M&M Finance.

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

Nomura on M&M Finance: Reduce| Target Rs 240

Nomura maintained a reduce rating on M&M Finance with a target of Rs 240. Disbursement growth moderated further while the business asset growth remained healthy.

GS3/GS2 improved by 70bp/90 q-q despite moderation in the collection efficiency. The average credit cost needs to be 0.9% in Q4 to achieve the upper limit of credit cost guidance.

BofA Securities on Jubilant FoodWorks: Buy| Target Rs 555

BofA Securities upgraded Jubilant FoodWorks to buy from neutral earlier with a target price of Rs 555. The global investment bank upgraded the stock to a buy post stock pullback.Further deterioration in business trends seems unlikely. The management is taking steps to revive growth for the long term. The company is investing through the cyclical downturn.JPMorgan on Tata Technologies: Underweight| Target R 800

JPMorgan maintained an underweight rating on Tata Technologies with a target price of Rs 800. JV with BMW for SDV programs is a step in the right direction.

The global investment bank still awaits clarity on accounting and margin profile. It still needs to see a scale-up of revenues from non-anchor clients to >$20mn.

India remains an attractive location for ER&D outsourcing. The global investment bank maintained an underweight rating as the valuation is excessive.

CLSA in IT sector: TCS, HCL Tech and Tech Mahindra

CLSA upgraded TCS to underperform from a sell earlier and also raised the target price to Rs 4043 from Rs 3925 earlier.

The global investment bank upgraded HCL Technologies to underperform from a sell earlier but raised the target price to Rs 1553 from Rs 1536 earlier.

TCS Mahindra was also upgraded to buy from outperform earlier but the target price was slashed to Rs 1508 from Rs 1518 earlier.

The global investment bank recommended a sell on Wipro but raised the target price to Rs 445 from Rs 441 earlier. It recommended an outperform rating on Infosys but slashed the target price to Rs 1706 from Rs 1741 earlier.

The global investment bank expects TCS, among large Indian IT firms, to top the charts in terms of CC QoQ growth.

Infosys has entered a strong growth phase with a few large deal ramp-ups planned for Q1.

(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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