Hot stocks: Brokerage view on Paytm, Vodafone Idea and Jana Small Finance Bank

Brokerage firms UBS and Jefferies have a neutral and hold rating respectively on Paytm. Citi has maintained a buy call on Vodafone Idea while Investec has initiated coverage on Jana Small Finance Bank with a buy rating.

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

UBS on Paytm: Neutral| Target price: Rs 490

UBS has maintained a neutral call on Paytm with a target price of Rs 490.


Paytm gets go ahead from the government for investment in PPSL and the company is likely to re-apply for payment aggregator license. This clears one of the key regulatory overhangs for the company and is sentiment positive. The government’s nod was necessary to get PA license as per RBI. Post the grant of license by RBI, Paytm will be able to add new online merchants which were under embargo.

Jefferies on Paytm: Hold| Target price: Rs 420

Jefferies maintained a hold rating on Paytm with a target price of Rs 420.

Paytm has received approval from Ministry of Finance for downstream investment in its payment gateway business. It will now resubmit its PA license application to RBI. If granted, it will be able to onboard new online merchants, which has been frozen since November 2022. Immediate business impact could be marginal, and Jefferies sees diminishing regulatory concerns as a positive. Post RBI approval, key pending regulatory issue is NPCI approval for new user onboarding.

Citi on Vodafone Idea: Buy| Target price: Rs 22

Citi maintained a buy rating on the stock with a target price of Rs 22.

SC has finally agreed to hear VI's AGR curative petition on August 30. Citi views this as a material development as the matter has been long pending. Favourable outcome could significantly reduce VI's AGR debt burden. Potential benefit is established at Rs 4-5/sh or even higher. This could also indirectly benefit Indus Towers and would benefit Bharti too, though its salience is far more limited. The update would have no implications for Jio.

Investec on Jana Small Finance Bank: Buy| Target price: Rs 725

Investec initiated coverage on the stock with a buy rating and a target price of Rs 725.

Fortitude is born from strife. The recent turnaround is a testament to the management's mettle. The business correspondent-led strategy provided access to Agri PSL with downside protection. ARC strategy helped maintain the reported GNPA. On liabilities, Investec believes that more investments are required for Jana to catch up with the top 3 SFBS. The company should deliver strong earnings growth over FY24-27 as cost ratios and credit costs improve. Investec forecasts a 21% PBT CAGR over FY24-FY27 with an average RoE of 17%. The valuation is also inexpensive at 1.2x FY26E P/B.

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