Global View: HDFC Bank, Devyani International, Asian Paints and KPIT Technologies could give 16-38% return
Indian market rose on Monday amid positive global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.
We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:
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HDFC Bank: Buy| Target Rs 2025
CLSA maintained a buy rating on HDFC Bank with a target price of Rs 2025 that translates into an upside of over 34 per cent from Rs 1506 recorded on 1 April.
The bank reported a big growth surprise but going forward net interest margin (NIM) trajectory will be the key. HDFC Bank reported a big 8.4 per cent QoQ growth.
Retail growth was in-line at 5 per cent on a QoQ basis. CASA momentum (+10% QoQ) remained strong, and the focus will now shift to see how its NIM trajectory pans out in near future.
Devyani International: Outperform| Target Rs 202
CLSA maintained an outperform rating on Devyani International with a target price of Rs 202 that translates into an upside of over 16 per cent from Rs 173 recorded on 1 April.
The management reiterated its stance on network expansion. The company has effective price hikes for both pizza hut and KFC. It continues to see 4X Ebitda growth over FY21-24, said the note.
Asian Paints: Neutral| Target Rs 3615
Citi maintained its neutral stance on Asian Paints with a target price of Rs 3615 which translates into an upside of over 16 per cent from Rs 3114 recorded on 1 April.
The company is strengthening its presence in the Home Décor segment which is positive. The operating environment remains volatile, particularly given the backdrop of inflationary headwinds.
The global investment bank expects additional pricing action (over & above 20%+ already taken) may be necessitated to offset the impact, said the note.
KPIT Technologies: Buy| Target Rs 840
Goldman Sachs maintained a buy rating on KPIT Technologies with a target price of Rs 840 which translates into an upside of over 38 per cent from Rs 608 reported on 1 April.
For 4Q22, the global investment bank expects +5%/+8% QoQ Revenue/EPS growth. The stock trades @47x fwd P/E vs closest peer Tata Elxsi at 90x representing a -48% discount.
The global investment bank expects the discount to narrow over time as KPIT’s margin profile & durability of growth shine through.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
