paytm shares: Hot Stocks: Brokerages view on Paytm, Sun Pharma, M&M Financial and KEC International

Brokerage firm Macquarie maintained a neutral rating on Paytm, BofA Securities recommended a neutral rating on Sun Pharma, and Elara Capital maintained an accumulate rating on KEC International and M&M Financial Services.

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

Macquarie on Paytm: Neutral| Target Rs 650

Macquarie maintained a neutral rating on Paytm with a target price of Rs 650. Implications from the RBI are quite serious.

There could be revenue and profitability implications in the medium to long term and that would be a key item to monitor.

Macquarie does not see any near-term solution to these problems. This effectively means that RBI is indirectly revoking the PPI (pre-paid instrument) license of Paytm.

BofA Securities on Sun Pharma: Neutral| Target Rs 1440

BofA Securities maintained a neutral rating on Sun Pharma but raised the target price to Rs 1440 from Rs 1370.

The US & India growth is positive. The pharma major reported inline quarterly results. Earning drivers factored in its valuations.

Elara Capital on KEC International: Accumulate| Target Rs 700

Elara Capital maintained an accumulate rating on KEC International with a target price of Rs 700.“We cut FY24E/25E/26E earnings 23%/13%/9% on lower EBITDA margin with higher interest cost. We cut the target by 3% to Rs 700 (from Rs 720) as we roll forward by a quarter to 17x December 2025E P/E (unchanged; in-line with one-year forward three-year average P/E),” said the note.

Elara Capital on M&M Financial Services: Accumulate| Target Rs 322

Elara Capital maintained an accumulate rating on M&M Financial Services with a target price of Rs 322.

“With risk at the core of strategy and strong credit cost guidance (1.5-1.7%), growth and margin should take a toll for MMFS in FY25-26E. Baking in tad slower growth and sectoral headwinds into our estimates, we trim FY24E-26E estimates 5-7%,” said the report.

“Rural sentiments and underlying borrower profile continue to anchor earnings, MMFS to focus on reducing earn-&-pay and NTC customers, increase phygital engagement and controlling stage 2 movements. The efforts promise 25% EPS CAGR with RoA/RoE settling at 2%/5% by FY26E,” added the note.

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

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