Hot Stocks: Brokerage view on Paytm, Avenue Supermarts, HDFC Life and SBI Life

Brokerage firm CLSA maintained a buy rating on Paytm, Motilal Oswal recommended a buy call on Avenue Supermarts and Macquarie downgraded life insurance companies such as HDFC Life, ICICI Prudential, and SBI Life.

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

Macquarie on Life Insurance Companies:

Macquarie downgraded HDFC Life Insurance Company to neutral from outperform and slashed its target price to Rs 556 from to Rs 655 earlier.

The brokerage also downgraded ICICI Prudential Life Insurance Company and SBI Life Insurance Company to neutral from outperform and slashed their target price to Rs 486 from Rs 580 earlier and to Rs 1306 from Rs 1580 earlier respectively.

The global investment bank remained concerned about longer-term growth prospects and looming regulatory risks. It forecasts a lower VNB CAGR at 9-15% for FY23-26E vs 16-22% for FY22-25E.

CLSA on Paytm: Buy| Target Rs 850
CLSA maintained a buy rating on Paytm with a target price of Rs 850. “Assessing impact if RBI allows First Loss Default Guarantee (FLDG) for non-regulated entities,” it said.

“Providing FLDG would hit profitability. Paytm's business model then becomes capital-consuming and not capital-light,” it added.

Motilal Oswal on Avenue Supermarts: Buy| Target Rs 4200
Motilal Oswal maintained a buy rating on Avenue Supermarts with a target price of Rs 4200. According to the brokerage, it is well-placed for earnings revival and has a long runway for growth.

“There has been a strong footprint addition in the last few years. Good cost control in a weak SSSG environment,” it said.

“The competitive position remains intact. Online business - not burning cash but is well prepared. This is the company’s first upgrade to Buy since October 2022,” it added.

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