Top stock picks: Brokerage recommendations on HDFC Bank, Adani Ports and more

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Indian share markets witnessed positive trading activity throughout the day on Monday and ended higher. Benchmark indices extended early gains and ended on positive note led by strong gains in realty and metal stocks after tracking firm global cues. At close, the BSE Sensex stood higher by 395 points or up 0.8%, while the NSE Nifty closed higher by 112 points, or up 0.7% on Monday.

Indian indices are set for a choppy start on Tuesday as per SGX Nifty indication.

Brokerage recommendations:

HDFC Bank: Jefferies India in a note on Monday said that HDFC Bank’s loan and deposits grew by 13-14% year-on-year and 1% quarter-on-quarter, while disbursement for the first quarter indicates that loan growth can improve from 2Q. An update on asset quality and tech issues is expected on 17 July.

The brokerage has a ‘Buy’ rating on the stock with the target price of 1,900 per share.

Adani Ports and SEZ: Centrum Broking in a note on July 3 said that hile the stock of Adani Ports and SEZ has corrected on recent adverse news flow around the Adani Group, the strength and resilience of its assets provide comfort. We expect 16.3% earnings CAGR over FY21-23.

It has a Buy rating on the stock with the target price of 870 apiece.

Marico: Domestic brokerage Motilal Oswal Financial Services in a note on July 4 said that outlook on Marico’s international business is getting better. Material costs are beginning to stabilize post the sharp inflation seen at the beginning of first quarter of FY22. This will help bolster gross margin.

The brokerage has a ‘Buy’ rating on the stock with target price of 610 per share

Finolex Industries: In a note on July 3, Reliance Industries said that it is positive on the firm’s growth prospects. Considering its healthy return ratios, sustained cash flow and high dividend pay-out of 38%, we expect the valuation discount of Finolex vis-à-vis its peers to narrow, the brokerage said.

It has a ‘Buy’ stance on the stock with target price of 200 apiece.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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