We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
CLSA on Auto Sector: Downgrade – Eicher Motor, Bajaj Auto and Hero MotoCorp
CLSA downgraded Eicher Motor to underperform from a buy earlier and also slashed the target price to Rs 4129 from Rs 4252 earlier.
Bajaj Auto received a downgraded to underperform from outperform earlier but the global investment bank raised the target price to Rs 6382 from Rs 5670 earlier.
Hero MotoCorp saw a downgrade by CLSA to outperform from a buy earlier but raised the target price to Rs 4127 from Rs 3701 earlier.
CLSA recommends a Sell on TVS Motor Company but raised the target price to Rs 1378 from Rs 1206 earlier.
Auto stocks are fairly valued led by a sharp rally in the stock price. Recovery in volume growth seen in the two-wheeler segment.
Affordable Electric 2-W are likely to come as a drag in margins. “Expect premium motorcycles to grow faster,” said the note.
Macquarie on Asian Paints: Outperform| Target Rs 3800
Macquarie maintained an outperform rating on Asian Paints with a target price of Rs 3800. The company is focusing on the budget end to outgrow the market.
The company reiterates double-digit volume growth expectations for H2 and the next 5-7 years.
It intends to launch differentiated offerings in the budget end and gain share from unorganized players.
The company believes that Grasim needs to focus on brand development as customer paints once in 6-7 years.
Asian Paints is now able to determine pricing in the retail- waterproofing market given its leadership position.
Emkay on Bandhan Bank: Buy| Target Rs 290
Emkay maintained a buy rating on Bandhan Bank with a target price of Rs 290. Bandhan Bank saw sharp correction post 2Q results, due to a spike in NPAs (mainly from MFI), delay in CGFMU recovery, sub-par industry growth and management saga.
The stock has seen an up move (+10%) mainly owing to the recent news flow around the bank’s plan to sell distressed home loans to ARC (mainly acquired from Gruh Fin) which should lead to NPA reduction.
Valuations are reasonable, with P/ABV at 1.5x/1.2x FY25E/FY26E, and the bank set to deliver healthy RoA/RoE of 2.4-2.5%/19-20%.
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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)