Brokerage View: Citi On Mphasis, Page Industries And More
We at NDTV Profit are tracking what the brokerages are putting out on specific stocks on the go.
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.
Citi on Mphasis
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 on Page Industries
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 On HDFC Bank
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
Macquarie On Indian Financials
Investor mood has become cautious on Indian financials
HDFC Bank has value 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.
Nomura On Indian 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 On HDFC Bank
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 On Poonawalla Fincorp
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 On AU Small Finance Bank
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, values it at 2.7x PBV