Hot Stocks: Brokerage view on Bajaj Finance, IRCON, and Emami

Brokerage firms CLSA and Jefferies maintained a buy rating on Bajaj Finance while Antique initiated coverage on IRCON International, and Emkay initiated a buy rating on Emami.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

CLSA on Bajaj Finance: Buy| Target Rs 9500

CLSA maintained a buy rating on Bajaj Finance but raised the target price to Rs 9500 from 9000 earlier.

Capital raised after four years will help fuel long-term growth. The global investment bank sees 10%-13% BVPS accretion from Rs 10,000 cr equity raise.

Capital raise is a sign of stronger-than-expected medium-term loan growth.

Antique on IRCON International: Buy| Target Rs 176
Antique initiated coverage on IRCON International with a buy rating and a target price of Rs 176. Railway dominated order book which gives revenue visibility.

Railway expenditure is likely to drive the company’s order backlog. The company has a first-mover advantage in the high-speed rail. Additionally, high-value projects are likely to aid economies of scale.

Emkay on Emami: Buy| Target Rs 625
Emkay initiated coverage on Emami with a buy rating and a target price of Rs 625. The rural recovery is key and the strategy for scaling up the urban play is reassuring.

A healthy margin profile is likely to support management’s attention to growth. Valuations remain attractive and re-rating is likely to follow, as issues get addressed.

Jefferies on Bajaj Finance: Buy| Target Rs 8830
Jefferies maintained a buy rating on Bajaj Finance with a target price of Rs 8830. The board is likely to consider fund raise on Oct 5. The company is well capitalised with a tier-1 CAR of 23%.

Fundraise may be upfronting of capital to support strong AUM growth and is reasonably ahead of time.

Assuming it raises 10-15% of net worth, the issue size may be Rs 8,000 cr. The global investment bank sees dilution of 2% whereas FY24E EPS & BVPS may rise 6% and 11%. Bajaj Finance stays among the top NBFC picks.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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