Hot Stocks: Brokerage view on RIL, SBI Cards, Barbeque Nation, and Paytm

Brokerage firm CLSA maintained a buy on RIL, Investec maintained a buy on Barbeque Nation, and Bernstein initiated an underperform rating on SBI Cards and an outperform rating on Paytm.

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

CLSA on RIL: Buy| Target Rs 3060

CLSA maintained a buy rating on Reliance Industries with a target price of Rs 3060. Qatar's sovereign fund buys a 1% stake at a US$100bn valuation.


This is likely to be higher than consensus valuation and should be seen as a positive. If this is a wider second round of stake sale it will validate this valuation and act as a soft floor for Reliance's stock.

Any discussion of the IPO of retail at the AGM next week could be another trigger for the RIL stock price.

Bernstein on SBI Cards: Underperform| Target Rs 650

Bernstein initiated an underperform rating on SBI Cards with a target price of Rs 650. It will face the direct impact of the rise of alternative digital credit offerings.

The global investment bank expects earnings growth to decline sharply from 30% in the last decade to 15% in the next 5 years.

Bernstein sees no revival in the revolvers and sees continued pressure on the fee margins.

Investec on Barbeque Nation: Buy| Target Rs 893

Investec maintained a buy rating on Barbeque Nation but slashed the target price to Rs 893 from Rs 1203 earlier.

The management stepped in to turn around a challenging situation which has just started to show up in the performance.

The global investment bank expects healthier store metrics to follow with EBITDA growth from Q3FY24.

FY24E being a reset year, the brokerage firm expects a strong recovery-led growth from FY25. Valuations at 14.5x EV/EBITDA on FY25 remain attractive.

Bernstein on Paytm: Outperform| Target Rs 1100

Bernstein initiated an outperform rating on Paytm with a target price of Rs 1100. Paytm is a dominant digital payment platform.
The company is on the right side of the disruption. The brokerage firm expects its loan disbursal volumes to grow sharply and achieve a market share of ~4% by FY26E.

With stabilizing margins in its payments segment, Bernstein expects the business to break even by FY25. It expects an EPS of Rs 130 by FY30.

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