Analysts recommend buying shares of HDFC, ICICI, Axis, and Kotak banks

From The Hindu Business Line: 2024-07-01 01:37:30

Analysts at BofA Securities recommend buying shares of HDFC, ICICI, Axis, and Kotak banks due to near-term tailwinds in valuations & EPS momentum. They anticipate continued outperformance by the Big 4 private banks, expecting a stable outlook for growth and NIM. Goldman Sachs issues a ‘Buy’ call on Neuland Labs with a target of Rs 9,100, highlighting the company’s focus on small molecule CDMO projects in human health. Kotak Institutional initiates a ‘Buy’ on JB Chemicals with a target of Rs 2,025, anticipating strong EBITDA/PAT CAGRs over FY24-27. Another analyst recommends a ‘Buy’ on Bharti Airtel, expecting robust earnings driven by tariff hikes.

Nomura also advises buying Bharti Airtel shares with a target price of Rs 1,650 as the company raises tariff plans by 13-21%. Jefferies raises the target to Rs 1740 but notes that the actual tariff hikes were slightly lower than expected. UBS remains neutral on Airtel, suggesting a target of Rs 1480. Macquarie issues an ‘Underperform’ call on USL, forecasting muted sales growth in Q1FY25 due to elections and heat waves. Meanwhile, Morgan Stanley remains ‘Underweight’ on Amara Raja, preferring Exide due to unclear financial returns on the Li battery business.

According to Macquarie, steel stocks have performed well, supported by policy reforms continuity and improved sentiment in China. They believe the outperformance is overdone. Kotak Institutional recommends buying IndiGo shares, expecting a gradual increase in airfares due to passengers’ ability to pay. UBS initiates a ‘Buy’ on L&T Finance, anticipating expansion in the loan book shift and benefiting from increased rural spending. They believe the risk-reward is favorable for investors.



Read more at The Hindu Business Line: Stock Market Live Updates 01 July 2024: Stock market live updates: Sensex, Nifty lifted by buying in blue-chip stocks, rally in Asian equities