Hot Stocks: Brokerages on Shriram Finance, Paradeep Phosphates, L&T and Lupin

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

Kotak Institutional Equities on Lupin: Reduce| Target Rs 815
Kotak Institutional Equities maintained a reduced rating on Lupin with a target price of Rs 815. gSpiriva to contribute 17-21% to Lupin’s EPS over FY2024-26.

The brokerage firm believes the upside from gSpiriva is priced in. It stays cautious given Lupin’s weak execution track record, slim medium-term US pipeline beyond gSpiriva, and subpar margin profile.

Jefferies on L&T: Buy| Target Rs 2900
Jefferies maintained a buy rating on L&T with a target price of Rs 2900. In Q1FY24 till date, L&T has announced 34% of our expected quarter announcements.

Rs 26,400 crore is the needed announcement, assuming 45% of unannounced orders. “We believe H1FY24 should see order flow traction as elections drive the front-ended FY24 order flow. H2 should benefit from margin recovery,” said the note.

Antique on Paradeep Phosphates: Initiate Buy| Target Rs 100
Antique initiated a buy rating on Paradeep Phosphates with a target price of Rs 100. The company is firing on all cylinders, and re-rating is on the cards.

The company is poised to reap great benefits from its recent capacity expansion.

The Goa plant acquisition is a boon. There are multiple levers to augment EBITDA/MT.

Relationship with promoter group (OCP, Morocco) to provide competitive advantages. It has one of the strongest business models in the phosphatic fertilizer space.

Jefferies on Shriram Finance: Upgrade to Buy| Target Rs 2130
Jefferies upgraded Shriram Finance to buy with a target price of Rs 2130. Equity supply overhang clears. The used CV outlook is favourable and cross-sell is likely to drive loan growth in the future.

Modest dip in NIMs, but the rate cycle is peaking. The company has steady asset quality and credit cost outlook.

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