Hot Stocks: Global brokerage view on HDFC Bank, D-Mart, Wipro post Q3 results; RIL could rally by 20%

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

Morgan Stanley on D-Mart: Equal Weight | Target Rs 3853
Morgan Stanley downgraded Avenue Supermarts (D-Mart) to Equal-weight post December quarter results with a target price of Rs 3853.

The top-line growth moderated on a three-year basis. “Q3 EBITDA margins were below our and consensus estimates,” said the note.

The global investment bank sees limited triggers for near-term stock performance. “DMart was disappointed both on growth as well as on margins in the last couple of quarters,” it said.

Bernstein on HDFC Bank: Outperform| Target Rs 2200
Bernstein maintained an outperform rating on HDFC Bank with a target price of Rs 2200. HDFC Bank reported its Q3FY23 results with an EPS of Rs 21.89.

“The bank reported profitability on a RoA basis which improved by ~20 bps on a quarter-on-quarter (QoQ) basis. Earnings growth was driven by a healthy credit growth of ~20% on a year-on-year (YoY) basis. The asset quality trends remained benign,” said the note.Investec on HDFC Bank: Hold | Target Rs 1690
Investec retained its hold rating on Investec with a target price of Rs 1690. “Balance Sheet management towards liquidity may not be sustainable,” said the note.

BofA Securities on Wipro: Underperform | Target Rs 395
BofA Securities maintained an underperform rating on Wipro post Q3 results with a target price of Rs 395.

“The Q3 revenue was towards the low end of the range. The company gave out a modest Q4 outlook. It reported a beat on profitability,” the brokerage said.

CLSA on Wipro: Outperform| Target Rs 450
CLSA maintained an outperform rating on Wipro post Q3 results and a target price of Rs 450.

According to the brokerage the company projected a soft near-term outlook but a strong order book and a supportive valuation.

“Revenue missed estimates in Q3 but the margin beat our estimates. Wipro has a strong order book but conversion delays affect Q4FY23 guidance,” said the note.

JPMorgan on RIL: Overweight| Target Rs 3015
JPMOrgan maintained its overweight stance on RIL with a target price of Rs 3015 which translates into an upside of over 20% from Rs 2467 recorded on January 13, 2023.

The global investment bank has been cutting estimates as there is a removal of the tariff hike from FY24.

“RIL is trading at the lower end of its recent trading range which makes it more attractive,” it said.

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