Hot Stocks: Brokerages on AU Small Finance Bank, TVS Motor, Medanta, ITC and Tata Motors

Brokerage firm Morgan Stanley maintained an overweight rating on AU Small Finance Bank, while JPMorgan prefers TVS Motor, Bajaj Auto, and M&M in the auto space.

Jefferies has a buy rating on Medanta, CLSA maintained an outperform rating on ITC and Macquarie kept outperform rating on Tata Motors.

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

Morgan Stanley on AU Small Finance Bank: Overweight| Target Rs 835
Morgan Stanley maintained an overweight rating on AU Small Finance Bank with a target price of Rs 835.

The Reserve Bank of India (RBI) has granted authorized foreign dealer licences which is a key positive for the AU Small Finance Bank, according to Morgan Stanley.

It will boost fee income over the medium term and benefits are seen kicking in from FY25, said the note.

AU’s long-term growth potential remains strong, the global investment banker said, adding that it continues to see strong earnings growth over the next few years.JPMorgan on Autos: Prefer TVS Motor, Bajaj Auto and M&M
JPMorgan’s preferred picks in the auto pace include TVS Motor, Bajaj Auto and M&M. The 2-W demand normalisation could continue in FY24, said the brokerage.

2Ws are still below pre-Covid levels but momentum is improving, and inventory remains healthy, said the note.

“Potential outperformance in rural demand is normally seen as a positive for Hero MotoCorp and Maruti Suzuki. But both these companies have been losing market share in rural India,” it observed.

Jefferies on Medanta: Buy| Target Rs 630
Jefferies maintained a buy rating on Medanta with a target price of Rs 630. Lucknow is emerging as a healthcare hub for the Central/Eastern UP region, said the brokerage.

“There is a significant demand-supply mismatch in the region. We see strong revenue and margin traction for Medanta. It is the largest private healthcare player in the region,” Jefferies analysts said.

CLSA on ITC: Outperform| Target Rs 430
CLSA maintained an outperform rating on ITC with a target price of Rs 430. There is improved growth visibility in cigarettes aided by stability in the tax structure, said CLSA.

“The FMCG business is delivering on both growth and margins. Corporate action for value unlocking in hotels is key to watch out for. The stock remains strong and long-term fundamentals are intact. Strong dividend yield offers support to the stock,” said the note.

Macquarie on Tata Motors: Outperform| Target Rs 511
Macquarie maintained an outperform rating on Tata Motors with a target price of Rs 511.

Delivery on capex needs to be monitored, for now, it addresses investor concerns around the upside risk to JLR’s capex, said Macquarie.

“Tata Motors targets net cash balance sheet by FY25 vs FY24 previously. The launch of EV is in line with earlier guidance,” said the note.

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



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