stocks to buy: Hot Stocks: Brokerage firms on Jindal Stainless, Cipla, Maruti Suzuki and Max Healthcare

Brokerage firms such as Investec maintained a buy rating on Jindal Stainless. Bernstein recommends an outperform on Cipla, JPMorgan has a neutral rating on Maruti Suzuki and Motilal Oswal recommends a buy on Max Healthcare.

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

Investec on Jindal Stainless: Buy| Target Rs 510

Investec maintained a buy rating on Jindal Stainless but raised the target price to Rs 510 from Rs 410 earlier.

The company has better capital allocation avenues. Incremental capital allocation can be towards either downstream assets or brownfield optionality.

The capex for the downstream foray would aid its converter model and offer better RoCEs — which is a positive.

Bernstein on Cipla: Outperform| Target Rs 1262

Bernstein maintained an outperform rating on Cipla with a target price of Rs 1262. Cipla is a well-run organization. Blackstone will have to get creative and spin-off businesses to unlock meaningful value.

Torrent has a fairly complementary portfolio with leadership. For Torrent, we believe that the portfolio overlap is manageable.

For Torrent, funding this acquisition will require 20- 25% promoter stake dilution + a consortium of PE + debt.

Both Cipla and Torrent are cash-generating businesses and large debt should not raise many 18 eyebrows.

JPMorgan on Maruti Suzuki: Neutral| Target Rs 8800

JPMorgan maintained a neutral rating on Maruti Suzuki with a target price of Rs 8800. Placing Maruti on a positive catalyst watch.

The global brokerage firm expects the stock to potentially outperform peers in the coming two months.

Channel checks suggest wholesale volume prints should be strong and lead to market share improvement.

The company has a strong SUV mix that should lead to a margin surprise in Q2. Beyond the festive season, we remain cautious on MSIL, as competitor launches could start again.

Motilal Oswal on Max Healthcare: Buy| Target Rs 660
Motilal Oswal maintained a buy rating on Max Healthcare with a target price of Rs 660. Max Healthcare is currently trading at 24x FY25E EV/EBITDA, representing a premium to its historical average of 22x and to its hospital peers (21x FY25E EV/EBITDA).

However, we expect Max Health to continue trading at a premium on a relative basis, backed by: a) significant land bank availability in high-demand areas of Delhi for brownfield expansion, b) focused approach to improve profitability per bed, and c) a proven capability of strong turnaround of hospital assets.

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

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