Hot Stocks: Brokerages on Indigo, Bajaj Auto, Ashok Leyland, Tata Motors, and Bank of Baroda

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

Morgan Stanley on InterGlobe Aviation: Overweight | Target Rs 2925
Morgan Stanley maintained an overweight rating on InterGlobe Aviation with a target price of Rs 2925 as valuations look attractive. The stock trades at 7x F2024e EV/EBITDA.

The global investment bank expects an 11% quarter-on-quarter (QoQ) yield decline and adj. net profit of Rs 0.8 bn in Q4. “In Q4 ’23, we expect IndiGo to see 45% year-on-year (YoY) (3% QoQ) growth in capacity, in-line with estimates”, it said.

Jefferies on Auto: Buy | Bajaj Auto, Ashok Leyland & Tata Motors

Jefferies remained positive on Indian auto companies as the sector is in the midst of a strong earnings cycle.

The global investment bank sees a healthy 11-18% volume CAGR for PVs, 2Ws, and trucks over FY23-25E.

“Strong top-line growth and better margins should fuel double-digit EPS CAGR,” the brokerage said. The global investment bank is of the view that the 2W growth is likely to outpace 4Ws over FY24-25.

Jefferies maintained its buy rating on Bajaj Auto with a target price of Rs 4,800/share. It retained its buy on Ashok Leyland as well with a target of Rs 185.

Jefferies has a buy rating on Tata Motors with a target of Rs 600. “TVS Motor and Tata Motors are strengthening their EV franchise well,” it said.

TVS Motor, Tata Moors, and Sona Blw Precision Forging are Jefferies’ preferred buys. It retains underperform on Bharat Forge and upgrades M&M from underperform to hold.

Prabhudas Lilladher on Bank of Baroda: Buy | Target Rs 220

Prabhudas Lilladher maintained its buy rating on Bank of Baroda post business update. “Gross loan growth at 19.0% YoY suggests stronger net loan growth at ~20.7% YoY/5.3% QoQ to Rs9.4trn (PLe of 19% YoY),” the brokerage said.

“CASA deposits for the system could have also seen a pick-up in Q4 which would bode well for banks cushioning NIMs to an extent (assuming accretion in linear thru the quarter). BoB trades at 0.95x/0.83x FY24/25E ABV,” it added.

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