Dispelling fears on the impact of Israel-Hamas conflict on the prospects of Adani Ports, CLSA says the crisis is offering buying opportunities to investors.
Meanwhile, Morgan Stanley and DAM Capital have maintained an ‘Overweight’ and ‘Buy’ views on RIL and Escorts, respectively, for these reasons.
We have collated a list of recommendations from top brokerage firms from ETNow:
CLSA on Adani Ports: Buy | Target: Rs 878
CLSA has a buy rating on Adani Ports and Special Economic Zone. The stock view comes in light of the 5% fall following the Israel-Hamas conflict. It said that its Haifa port operations account for a 1.3% value and the ongoing war fears present an even better buying opportunity in the stock.
The foreign brokerage expects pay-back of 4/6 years under base case/worst case scenarios for Haifa strategic assets with long duration concessions.
The HPC traffic is mainly imports of coal and bulk materials which should have reasonable stickiness, it said in a note.
Haifa is located in the North versus Gaza crisis in the South and hence disruptions are likely to be minimal, CLSA said. ADSEZ is trading at a 43% discount on FY25CL PE to Concor.
Morgan Stanley on RIL: Overweight | Target Rs 2,821
Morgan Stanley remains overweight on Reliance Industries for a price target of Rs 2,821. It said that the key investor concern in 2023 should get addressed.
Earnings delivery and flattening net debt in the upcoming earnings will help which will see a 25% YoY and 6% QoQ rise with two thirds of the growth driven by energy vertical followed by retail.
With the MSCI old energy multiples surpassing new energy, investor sentiment should shift towards NAV quality, it noted.
DAM Capital on Escorts Kubota: Buy | Target: Rs 5,100
Domestic brokerage DAM maintains a buy view on Escorts Kubota and has raised the target price to Rs 5,100 from Rs 3,150. The brokerage expects higher exports growth to drive its overall volume growth while higher scale and better exports margins would expand the overall margins and profitability in DAM’s view.
It also expects the company’s revenue/EBITDA/PAT to record 17%/37%/41% CAGR over FY23- FY26 and believes that its valuation would expand closer to that of MNCs at 30X.
(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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