Hot Stocks: Brokerage view on IndusInd Bank, Dixon Tech, AU SFB and others

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

1) Morgan Stanley on IndusInd Bank: Overweight | CMP: 1,368 | Target: Rs 1,725
Morgan Stanley is ‘Overweight’ on IndusInd Bank with a price target of Rs 1,725.Sequential loan growth was strong at 4% versus 6% QoQ last quarter and retail deposits growth improved to 5% quarter-on-quarter (QoQ) versus 3.7% last quarter.

2) Jefferies on Dixon Technologies: Hold | CMP: 4,358.15 | Target: 4,550
Brokerage firm Jefferies has downgraded Dixon Technologies to ‘Hold’ from ‘Buy’ while raising the price target from Rs 4,350 to Rs 4,550. The global brokerage noted that the current risk-reward appears stretched post a sharp rally in the stock. EMS’s (Electronic Manufacturing Services) order book is influenced by sales budgeting by brand owners. Current weak demand poses a downside risk to the existing high-growth forecast.

3) Nomura on Samvardhana Motherson: Buy | CMP: Rs 85.30 | Target: Rs 105
Nomura has upgraded Samvardhana Motherson to ‘Buy’ from ‘Neutral’ and hiked the price target from Rs 90 to Rs 105.It said that the company’s acquisition of an 81% stake in Yachiyo 4W business is at an attractive valuation. It said it was a good acquisition given the high potential of sunroof systems and entry into Japanese customer space. It sees EPS accretion of >7% for the company. Valuations are attractive given the upsides to earnings from recent acquisitions.

4) Morgan Stanley on AU Small Finance Bank: Buy | CMP: Rs 775.80 | Target: Rs 965
Brokerage firm Morgan Stanley remains ‘Overweight’ on AU Small Finance Bank and puts the price target at Rs 965. The CASA deposit growth declined due to outflow from one large account, it said. Management alluded to a sequential increase in CoF, which will negatively affect margins as expected, Morgan Stanley firm said.

5) CLSA on Cement Stocks: Buy Dalmia Cement, UltraTech
CLSA has picked Dalmia Cement and UltraTech Cement as their preferred picks in the cement sector. Strong demand and cost reduction are fairly priced in. On spot cement prices, costs and demand run-rate, see 5%-12% upgrades to consensus. With the sharp rally, most stocks are trading above the historical median.

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