Hot Stocks: Brokerage view on Zomato, Nykaa, Delhivery, TVS Motors and GAIL India

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

Credit Suisse on Internet stocks: Zomato and Nykaa

Credit Suisse maintained its positive view on Zomato but has a cautious stance on Nykaa. According to the investment bank, internet economy growth is slowing down.

“The material slowdown in the internet economy is a reversal towards trend-line. Urban consumption is strong with a channel shift towards offline and wallet share” it said

It expects e-commerce growth to start normalizing towards the trend line. “Like Zomato given favourable industry dynamics and push towards profitability,”it said.

“We are cautious on Nykaa due to growing competition in its core beauty segment. Re-opening segments seeing good growth,” the report added.

Credit Suisse on Delhivery: Outperform| Target Rs 500

Credit Suisse maintained an outperform rating on Delhivery with a target price of Rs 500. “We may be close to an inflection point on multiple dimensions. The sector is passing a high water mark, but the long-term growth is intact,” said the note.

Potential capital churn coincided with weak operation performance. “We are seeing stabilization of network parameters and these are early signs of recovery,” said the note.

According to the brokerage, improved operating performance would enable broader institutional growth.

JPMorgan on TVS Motors: Overweight| Target Rs 1330

JPMorgan maintained an overweight rating on TVS Motors with a target price of Rs 1330. “The two-wheeler maker is expected to drive stronger earnings growth vs peers and support its premium valuations,” it said.

The global investment bank raises the valuation multiple for TVS to 27x.

“Electrification is viewed as a risk for legacy ICE OEMs. TVS could potentially cross 20% market- share by the end,” said the note.

CLSA on Gail India: Buy| Target Rs 125

CLSA maintained a buy rating on GAIL India with a target of Rs 125. The global investment bank sees a big trigger ahead.

It expects a big tariff hike soon and raised EPS and target. “Gail proposes a 70% hike in the gas transmission tariff, even after accommodating disagreements of regulators,” it said.

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