Hot stocks: Brokerage view on Zomato, Ola Electric, M&M and HAL

Brokerage firms such as Morgan Stanley have an overweight rating on Zomato and M&M, while Jefferies has a buy rating on Hindustan Aeronautics (HAL). HSBC has initiated coverage of Ola Electric with a buy rating.

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

Morgan Stanley on Zomato: Overweight | Target price: Rs 278

Morgan Stanley has maintained an overweight rating on Zomato, with a target price of Rs 278.

Over the past few weeks, the news suggests increasing competitive intensity in the quick commerce sector. Morgan Stanley views this as an indication of the growing importance of the QC channel, though they also acknowledge that heightened competition could threaten profitability assumptions. Retaining market leadership is considered a top priority, even if it means delaying profitability. Any pullbacks due to rising competitive activity might present long-term investors with an opportunity to accumulate the stock.

HSBC on Ola Electric: Buy | Target price: Rs 140
Ola Electric has received its first 'buy' recommendation post its quarterly results and listing. HSBC has initiated coverage on Ola Electric with a buy rating and a target price of Rs 140.

EV manufacturing costs are expected to fall significantly by FY27/28, while costs for ICE scooters may rise due to stricter emission standards. Barriers to switching to electric two-wheelers (e2Ws) may decrease, and Ola's battery venture could prove successful. HSBC believes Ola is a worthy investment, given sustained regulatory support, its potential to reduce costs, and a positive risk-reward profile for its battery venture. However, slower e2W adoption and potential issues with the battery plant are key downside risks.

Morgan Stanley on M&M: Overweight | Target price: Rs 3,304

Morgan Stanley maintained its Overweight rating on M&M with a target price of Rs 3,304.

With the Thar Five-door launch, M&M is aiming to be the number 1 Brand in > 1,250k SUV segment.

The global brokerage firm said that it found the Thar five-door package impressive and M&M has shown good success in its past launches while expecting the three- and five-door variants to collectively clock 8-9k unit sales/month. Morgan Stanley has maintained the view that M&M will be the fastest growing PV company and see a strong jump in sales in coming months, driven by festive demand.

Jefferies on HAL: Buy | Target price: 5,725
Jefferies has maintained a buy rating on HAL with a target price of Rs 5,725.

Q1 revenue exceeded estimates, but EBITDA was lower due to margin contraction. Despite this, a strong order book and visible pipeline instill confidence in continued double-digit growth over the next 3-5 years. Margins, which are currently volatile, are expected to improve in the second half of the year with increased revenue delivery.

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