Brokerage View: Citi On Mphasis, Page Industries And More

Citi has retained a 'sell' rating on both Page Industries Ltd. and Mphasis Ltd. Meanwhile, Jefferies has maintained a 'buy' recommendation for HDFC Bank.

According to Macquarie, the financial sector in India is currently experiencing a cautious sentiment among investors. Many investors are viewing the Chinese market as a favorable tactical bet in comparison to India. This preference for the Chinese market is attributed to India's higher valuation levels.

India's benchmark indices rebounded on Monday from a one-session fall to end the first session of the week higher, tracking gains in Tata Steel Ltd., Reliance Industries Ltd., and Mahindra & Mahindra Ltd.

The NSE Nifty 50 closed 32.35 points, or 0.15%, higher at 22,055.70, and the S&P BSE Sensex ended 104.99 points, or 0.14%, up at 72,748.42.

We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go. Here are the top calls, from Mphasis to HDFC Bank.

• The research firm has maintained 'sell' rating on Mphasis

• Price target of Rs 2,515, implying a downside of 2.64%

• Management sees no change in demand environment

• Positive client sentiment has not translated to higher deal TCV

• Management expects fourth quarter growth beyond reversal of furloughs benefit

• Expect FY24E margins to remain in guided range of 15.25%-16.25%

• Uptick in business will likely happen due to higher consolidation in existing clients and addition of new logos, change in macro environment

• Management expects some growth in mortgage business if there is no change in macro environment

• Mortgage business revenues fell from mid-teens few quarters ago to 6% currently due to increase in interest rate—business uptick due to rate reduction will likely be significant whenever it happens

• Citi maintain 'sell' with target price of Rs 33,800. This implies a downside of 2.58%

• Demand environment remains subdued

• Volume decline higher in athleisurewear vs innerwear

• Fourth quarter is seasonally the weakest and that trend will continues

• Aspiration of Rs 8,000 crore revenue likely pushed to FY28E vs FY27E

• Near-term Ebitda margin may get impacted due to investments

• New customer acquisition in men’s innerwear remains subdued

• Growth in the medium term will be a function of 2-3% pricing and double digit volume growth, across all categories

• Nomura maintains neutral rating on HDFC Bank with target price of Rs 1,625

• Bank has a significant depth in senior management

• Do not expect any material impact on the business owing to the management change

• Churn at senior management level in medium term to be a key monitorable

• Investor mood has become cautious on Indian financials

• HDFC Bank has but still not the time to go long.

• Investors still not confident of HDFC Bank delivering good numbers in near term.

• Shriram Finance consensus 'overweight' among investors

• Investors looking at Public Sector Undertakings more favourably

• No interest in Paytm till dust settles.

• PB Fintech's valuations appear stretched, indicating a likelihood of profit-taking in the near term.

• PB Fintech: valuations look stretched, expect some profit taking

• HDFC Life's growth prospects, as its parent focused on selling deposits than insurance

• SBI Life Insurance is the preferred pick

• The trading strategy recommended is to take a long position on PSU banks and simultaneously have a sell positions in private sector banks.

Hosted ICICI & Kotak Bank at US Virtual Corporate Day

Nomura on ICICI Bank

• Expect tight liquidity, rate cut in / after Q4FY25

• Deposit rates largely stable, margins expected to be stable

• Loan growth in unsecured retail to moderate

• Some improvement in pricing on Corporate

Nomura on Kotak Bank

• Deposit mobilisation a challenge, no challenge on loan growth

• Gradual moderation in margins going forward, margins to normalise at pre-covid level

• Expect cost ratios to moderate

• Jefferies maintains 'buy' on HDFC Bank. With a target price of Rs 1,800, implying an upside return potential of

• Senior management exit is negative

• Smooth transitions will be key

• Bank's strong talent base is comfort

• Might be negative sentiment for Bajaj Finance, Poonawalla's peer

• Emkay reiterates reduce on Poonawalla Fincorp with target price of Rs 440

• The company announced the appointment of Arvind Kapil as the MD and CEO for five years

• Emkay expects the company to pivot to 'phygital' approach: wider product offering, larger customer base

• Right ingredients are in place to establish a successful retail lending franchise

• Pivot in business model likely to drive growth, profitability moderation in near term

• Value Poonawalla Fincorp at 3.1x FY26E price

• Motilal Oswal reiterates buy on AU Small Finance Bank with a target price of Rs 720

• Loan growth to sustain at healthy 25% CAGR after merger

• Business mix to diversify; new product lines to open up growth avenues

• Cost ratios to stay elevated; operating leverage to improve gradually

• Elevated funding costs to remain a drag on near-term margins

• RoA to remain suppressed in near term, s it at 2.7x PBV