infosys shares: Hot Stocks: Brokerages view on Infosys, TCS, Polycab India and Macrotech Developers

Brokerage firm InCred upgraded Infosys to an ADD post Q3 results, Morgan Stanley also upgraded TCS to overweight post Q3 results, Axis Capital maintained an ADD rating on Polycab and Jefferies has a buy rating on Macrotech Developers.

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

InCred on Infosys: ADD| Target Rs 1668

InCred upgraded Infosys to ADD from Hold earlier post Q3 results and also raised the target price to Rs 1668 from Rs 1496 earlier.

The Q3 revenue decline and the EBIT margin were largely in line with expectations. TCV conversion cushions FY25F growth assumption. Infosys has a reasonable valuation relative to peers which led to an upgrade in stock rating.

Morgan Stanley on TCS: Overweight| Target Rs 4240

Morgan Stanley upgraded TCS to overweight from Equal-Weight earlier and raised the target price to Rs 4240 from Rs 3900 earlier.

The global investment bank is seeing resilience in revenues and EBIT margin reached 25% sooner than expected.

The management commentary turned slightly positive, with a likely pickup in growth rates indicated.

The stock underperformed peers in 2023 and the P/E multiple is not cheap but the premium could be sustained if execution improves.

Axis Capital on Polycab India: Add| Target Rs 4300

Axis Capital maintained an ADD rating on Polycab India but reduced the target price to Rs 4300 from Rs 5809 earlier.

The brokerage firm slashed the target price to factor in uncertainties due to the IT raid. It cuts EPS estimates by 2-4% to factor in disruptions due to IT raid in FY24 and lower cables and wires margins.

Axis Capital believes that multiple derating is inevitable till the charges are proven otherwise. It does not have sufficient information to decide – if tax evasion occurred.

There is time for the final judgment if Polycab decides to contest the charges.

Jefferies on Macrotech Developers: Buy| Target Rs 1290

Jefferies maintained a buy rating on Macrotech Developers with a target price of Rs 1290. The opening of Mumbai Trans Harbor Link is the first mega project start in a $70bn+ infra upgrade boosting connectivity in the city.

Lodha’s large 4,300+ acre land bank on the city outskirts is well-placed to benefit. Multiple site visits to Lodha’s Palava township show a well-planned development taking place.

Land prices have doubled in three years, but there is potential for an upside long term. Affordable housing policy boost to residential sales is also likely soon.

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

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