Hot Stocks: Hot Stocks: Brokerages view on HCL Tech, M&M Finance, L&T Finance & UltraTech Cement

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

Nomura on HCL Technologies: Neutral | Target Rs 1,200
Nomura maintained a neutral rating on HCL Technologies with a target price of Rs 1,200.

After the divesture, HCL would lose $97 million or 80 bps of its current revenues. As a part of this divesture, HCL would receive $170 million + net book value on the date of closing.

The transaction only impacts the BPO contract. State Street would remain among the top 15 clients.

Jefferies on M&M Finance: Hold | Target Rs 295
Jefferies maintained a hold rating on M&M Finance with a target price of Rs 295. The company has delivered healthy loan growth, but the asset quality remained rangebound.

The valuations appear reasonable. There is visibility on the trajectory for higher ROA, which is needed to drive rerating seems limited.

Sharekhan on L&T Finance: Buy | Target Rs 170
Sharekhan maintained a buy rating on L&T Finance with a target price of Rs 170. With the management’s strong intent, L&T Finance Holdings is set to transform into a retail franchise as the company is aggressively reducing the wholesale book, while the retail book has been growing at a brisk pace, supported by a favourable credit cycle.

The net profit is estimated to grow at 25% CAGR over FY23-26E, which will drive 100 bps expansion in RoA to 2.8% by FY26E. At CMP, the stock trades at 1.4x/1.2x FY2025E/ FY2026E BV estimates.

LTFH has set a vision to become a top-class digitally enabled retail finance company moving from a ‘product-focused’ to ‘customer-focused’ approach.

Sharekhan on UltraTech Cement: Buy | Target Rs 10,500
Sharekhan maintained a buy rating on UltraTech Cement with a target of Rs 10,500. Ultratech announces the acquisition of Kesoram’s cement assets at a fairly attractive valuation of $91 adjusted EV/tonne.

Transaction to be undertaken through a share swap with NIL cash consideration. The proposed assets would increase Ultratech’s Southern region’s capacity mix to 22% from 15% and Industry capacity share to 17% from 11%.

Inorganic growth to maintain Industry pricing discipline. “We expect operational profitability of proposed assets to be brought at par with Ultratech’s in a shorter period. Acquired assets to contribute for the full fiscal year during FY2026,” said the note.

UltraTech is well poised to benefit from a strong demand environment led by government spending on infrastructure and rising demand from the housing
sector.

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