Hot Stocks: Brokerage view on Fusion Micro, IDFC First, Tarsons Products and L&T
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We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Investec on Fusion Micro Finance Ltd: Buy| Target Rs 780
Investec initiated coverage on Fusion Micro Finance with a buy rating and a target price of Rs 780. Resilient industry and structural developments have created a strong outlook.
The company has a prudent expansion strategy. The brokerage firm expects strong AUM growth (25% CAGR) and profitability (20%+ ROE) over the next 3 years.
Investec on IDFC First Bank: Hold| Target Rs 103
Investec initiated coverage on IDFC First Bank with a hold rating and a target price of Rs 103. Balance sheet stability should ensure high growth.
The company is placed to deliver the highest growth in the sector over the next 3 years. The recent rally captures growth but not profitability.
ICICI Securities on Tarsons Products: ADD| Target Rs 590
ICICI Securities reinitiated coverage on Tarsons Products with an ADD rating and a target price of Rs 590.Tarsons Products (Tarsons) offers a range of plastic labware products. Over the years, it has gained ~25% market share in a segment that was historically dominated by MNCs.
The company is now spreading its wings in niche areas like cell culture and is adding two new plants at Panchla and Amta (both in West Bengal) which it believes may double its available capacities by CY24E.
“Excessive inventory in the system and overheads of new plants may keep a check on growth in the near term. We re-initiate coverage on the stock with ADD rating and target price of Rs 590,” said the note.
Prabhudas Lilladher on L&T: Buy| Target Rs 3302
Prabhudas Lilladher maintained a buy rating on L&T with a target price of Rs 3302. It revised FY24/25E estimates by 1.7%/3.7%, post factoring in healthy growth prospects for the hydrocarbon business.
The stock is currently trading at a PE of 32.9x/27.1x FY24/25E. It maintains ‘Buy’ rating on the stock and has raised the target to Rs3,302 from Rs2,955 earlier valuing the core business at PE of 25x FY25E (22x earlier).
“We believe L&T to comfortably surpass its order inflows guidance of 10-12% growth for FY24 (~Rs2.3trn in FY23) aided by large international and domestic order wins,” said the note.
(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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