Global View: NTPC, Shree Cement, Zydus Lifescience, Ashok Leyland and Paytm can give 3-87% return

Indian markets on Monday witnessed a gap-up opening as Sensex surged around 150 points and Nifty near 16300 levels at the market open. Metal stocks dragged, while auto stocks kept indices in green.  

Investors may see a stock-specific action in NTPC, Shree Cement, Zydus Lifescience, Paytm and Ashok Leyland in which global brokerages 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: 

NTPC – Upside up to 24% 

Global brokerage CLSA maintained a Buy rating on NTPC shares with a target price of Rs 180 per share. It said, the company’s renewable capacity grew by 33 per cent Year-on-Year (YoY), and NTPC leader in the energy transition segment. 

While other global brokerages such as Morgan Stanley gives an Overweight rating with a target price of Rs 186 apiece. JP Morgan maintained a Neutral stance with Rs 156 per share target and Jefferies expects the stock price to grow by Rs 165 per share, maintaining a Buy rating.  

Shree Cement – Upside up to 3% 

CLSA gives a Neutral rating with a target of Rs 22600 per share, as it said the company reported weak March quarter results – below expectations. While Goldman Sachs and Jefferies maintained Neutral and Underperform ratings with a target of Rs 22600 and 22000 per share, respectively. 

Goldman Sachs said in its commentary that Shree Cements volumes/pricing are marginally below peers and a sequential increase in P&F costs hurt profitability. 

Zydus Lifescience – Upside up to 37% 

While maintaining a Buy rating and target of Rs 490 apiece, CLSA on Zydus said that the company’s UK business slipped by 5 per cent sequentially and cost reduction aided for lower inflation impact, while risk-reward good at the current price. 

Jefferies maintained a Hold stance while increasing the target to Rs 406 from Rs 395 per share. Nomura maintained a Buy rating with Rs 489 per share target and Morgan Stanley reduced the stock price to Rs 513 from Rs 543 per share. 

Ashok Leyland – Upside up to 29% 

Nomura believes the commercial vehicle (CV) cycle turnaround may benefit Ashok Leyland, while Maintaining a Buy stance with Rs 168 per share target. While Macquarie gives Outperform ratings and cuts the target to Rs 146 from Rs 162 per share. 

And, JP Morgan maintained Overweight ratings while upgrading the target price to Rs 160 from Rs 135 per share. The brokerage raises FY23/FY24 EPS estimates by 31/6 per cent.  

Paytm – Upside up to 87% 

Goldman Sachs maintained a Buy call on Paytm while upgrading the target price to Rs 1070 from 1060 per share. It said Q4 exhibited another quarter of strong and improving monetisation of payments vertical and growth momentum for financial services and cloud business robust. 

On the contrary, Macquarie maintained Underperform rating and sets a Rs 450 per share target on stock. On Friday it closed at about Rs 573 per share levels. The brokerage believes the company could take 12 quarters for EBITDA losses to break even as profitability is still an uphill battle.