Analyst Calls: Muthoot Finance, HDFC

Good morning!

The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 6.25 points lower this morning, signalling a tepid start for Dalal Street.

. Kotak Institutional Equities has maintained add rating on Muthoot Finance with a target price of Rs 900. A solid security and appreciating asset prices will augur well for Muthoot’s stable asset quality performance during a period when most of the NBFCs have negligible visibility on their recoveries, said Kotak Institutional. The long lockdown and rub-off of liquidity challenges for NBFCs will, however, likely translate into muted growth in FY21, said Kotak. The stock ended down 0.4 per cent at Rs 781.30 on Tuesday.


. Morgan Stanley has maintained buy rating on HDFC and revised target price to Rs 2,155 from Rs 2,270. In a tough and uncertain macro climate, HDFC has arguably the most defensive balance sheet among financials, providing much needed near-term resilience, said Morgan Stanley. This, even as its structural growth potential continues to expand, as a strong player in the challenged NBFC segment, said Morgan Stanley. The stock ended down 1.9 per cent at Rs 1,690.85 on Tuesday.