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Sharekhan has a buy rating on KPR Mill and has a positive view on Hindustan Aeronautics.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Morgan Stanley on SBI Life: Overweight| Target Rs 1650
Morgan Stanley maintained an overweight rating on SBI Life with a target price of Rs 1650. The management maintained an APE growth guidance at 18-20% and VNB margin guidance at 28- 30%.
The management said that there is nothing on table as of now regarding risk of increase in commission payouts to SBI.
On SBI adopting open architecture, management sees negligible probability of that risk.
CLSA on Bajaj Finance:
Bajaj Finance remained in focus after the Reserve Bank of India barred the non-bank lender from issuing loans under two products with immediate effect.The global investment bank, CLSA, sees this as more of an operational breach rather than a major violation of the RBI’s guidelines.
The company feels some tech upgrades to generate and issue a KFS on the spot will be needed.
CLSA is of the view that the issue should be resolved in one to two quarters. “While the ban is in effect, calculate that it will impact profits by 6%,” said the note.
Sharekhan on Hindustan Aeronautics: Positive| Upside potential 20%
Sharekhan maintained a positive stance on Hindustan Aeronautics which could offer 20% upside from current levels in the next 12 months.
HAL’s Q2 PAT missed estimate by 13% as revenue and margin were impacted by lower execution and higher costs.
However, the brokerage firm is bullish on HAL’s growth trajectory, as it is one of the key beneficiaries of structural reforms in the defense sector.
HAL has strong government support, proven execution capabilities and a healthy cash balance. The stock currently trades at ~19x its FY2026E EPS.
“We have a Positive view on the stock and expect a 20% upside,” said the note.
Sharekhan on KPR Mill: Buy| Target Rs 885
Sharekhan maintained a buy rating on KPR Mill with a target price of Rs 885. KPR Mills’ (KPR’s) Q2FY2024 numbers were a mixed bag, as revenue grew by 23.8% y-o-y to Rs. 1,511 crore, while a 629 bps y-o-y fall in EBITDA margin to 19.7% led to PAT remaining flat y-o-y at Rs. 202 crore.
KPR’s Q2FY2024 numbers were mixed as revenue grew in double-digits, while sharp margin contraction led to PAT remaining flat y-o-y.
In the medium-long term, the China + 1 factor, a likely sign of a free trade agreement (FTA) with the UK and increasing opportunities in the US market provide scope of consistent growth for its high-margin garment business (40% of total revenue).
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(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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