Hot Stocks: Brokerage view on Bajaj Finance, Power Grid, Bharti Airtel and ITC

Global brokerage JPMorgan remained positive on Bajaj Finance as well as L&T Finance and remained overweight on Power Grid. Morgan Stanley maintained an overweight stance on Bharti Airtel, and Goldman Sachs has a buy on ITC.

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

JPMorgan on NBFC: Bajaj Finance, L&T Finance top picks
JPMorgan remained positive on Bajaj Finance and L&T Finance within the NBFC space amid positive earnings traction post-Q3FY23 results. The global investment bank has a target of Rs 9,000 per share for Bajaj Finance, and Rs 115 for L&T Finance.


"Despite headwinds from higher rates, YTD returns have been positive. NBFCs have outperformed Bank NIFTY/ NIFTY. Further, loan growth at most NBFCs has been weak since late 2018 (IL&FS)," it said.

The global investment bank expects selective outperformance in the names given valuations for many.

JPMorgan on Power Grid: Overweight| Target Rs 250
JPMorgan maintained its overweight stance on Power Grid with a target price of Rs 250. Data suggests that new project wins are picking up.

There is a potential upside to capex guidance, the brokerage said. Power Grid has won five inter-state projects under TBCB mode.

"India's large transmission plan to integrate renewables. The global investment bank sees the probability of an uptick in capex guidance. The potential upside to growth as the power capex cycle picks ", the note said.

Morgan Stanley on Bharti Airtel: Overweight| Target Rs 860
Morgan Stanley maintained an overweight rating on Bharti Airtel with a target price of Rs 860. Bharti Airtel has now rolled out higher minimum recharge plans across 2 more circles.

Think these plans could eventually be rolled out pan-India, it said. Bharti Airtel has been the first mover in taking entry-level tariffs higher.

Goldman Sachs on ITC: Buy| Target Rs 450
Goldman Sachs maintained a buy rating on ITC with a target price of Rs 450.

"FMCG business has a significant contribution to ITC's EBIT. Capital allocation has improved resulting in ~85% PAT to FCF conversion. ITC's PE is in-line with the 15-year average despite the improvements. ITC's premium over global tobacco peers in-line with history," it said.

Global investment bank highlighted that the valuations still trade at a steep discount to India FMCG despite being comparable.

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