Hot Stocks: Brokerage view on IndusInd Bank, Paytm, Kaynes Technology and ICICI Prudential Life

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

Macquarie on IndusInd Bank: Outperform| Target Rs 1510
Macquarie maintained an outperform rating on IndusInd Bank with a target price of Rs 1510. The company reiterated its stance of delivering 2% ROA over the longer term.

According to the brokerage, credit costs for FY24 are likely to fall from ~160bps in FY23 to around 110-130bps. The management is confident of increasing net interest margins (NIMs) from the current 4.2-4.3% to 4.4%.

The objective is to strengthen the balance sheet by making more contingent provisions.

Macquarie on Paytm: Downgrade to Neutral| Target Rs 800
Macquarie downgraded Paytm to neutral with a target price of Rs 800. The downgrade is owing to a sharp run-up in the share price.The price has moved but there is no change in earnings. The global investment bank expects PayTM to report accounting profitability by FY26.

Ant Financial still holds ~25% stake and could be looking to pare down its stake, which could cause an overhang.

The global investment bank sees risks emerging from JFS’s (Jio Financial Services) foray into the financial services space.

Spark on EMS Industry: initiate buy on Kaynes Technology
Spark initiated an add rating on Kaynes Technology India with a target price of Rs 1637. It also initiated a buy rating on Syrma SGS Technology and Avalon Technologies with a target price of Rs 598 and 679 respectively.

There is a large addressable import substitution opportunity for domestic EMS players.

Global firms are shifting sourcing from China to benefit Electronics Manufacturing Services (EMS) players. The brokerage firm believes that the EMS industry would grow at above 25% CAGR over the next few years.

CLSA on ICICI Prudential Life Insurance: Buy| Target Rs 700
CLSA maintained a buy rating on ICICI Prudential Life Insurance with a target price of Rs 700. The focus should be on APE growth-multiple levers.

ICICI Bank as a channel will bottom out in H2FY24 and this should reduce the growth drags.

Investment in the agency to help along with product mix diversification.

Multiple drags are now behind the company, IPRU should at least see industry-level growth, said the note.

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