Hot Stocks: Brokerages on Bajaj Finance, SBI Life and Maruti Suzuki

Brokerage firms Morgan Stanley and JPMorgan maintained an overweight rating on Bajaj Finance post March quarter results.

Goldman Sachs has a buy rating on SBI Life Insurance Company and Choice Broking maintained an outperform rating on Maruti Suzuki post March quarter results.

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


Morgan Stanley on Bajaj Finance: Overweight | Target: Rs 8000
Morgan Stanley maintained an overweight rating on Bajaj Finance post March quarter results with a target price of Rs 8000.

“Consensus estimate revisions remain positive. The return on equity (ROE) profile (i.e., BVPS growth) is the key value creation metric to be tracked,” the brokerage said.

“Bajaj Finance raised loan growth guidance. P/BV and P/E are trading near 1-S.D. below 5-year mean,” it added. The global investment bank expects that rates are likely to peak out soon and that should act like a tailwind.

JPMorgan on Bajaj Finance: Overweight | Target: Rs 9,000
JPMorgan maintained an overweight rating on Bajaj Finance post March quarter results with a target of Rs 9000.

“The company surprised positively on margins once again. The net interest margins (NIMs) were stable on a QoQ basis despite higher funding costs,” the brokerage said.

“The core AUM growth was at 29% on a year-0n-year (YoY) basis with broad-based growth. The asset quality continues to be solid,” it added.

The global investment bank is of the view that Bajaj Finance can continue to deliver 25%+ growth vs the banking system and justifies valuation premium vs top private banks.

Goldman Sachs on SBI Life: Buy | Target: Rs 1510
Goldman Sachs maintained a buy rating on SBI Life Insurance with a target of Rs 1510. “The company delivered robust VNB growth and guides for a strong FY24,” it said.

Choice Broking on Maruti Suzuki: Outperform | Target Rs 10,331
Choice Broking maintained an outperform rating on Maruti Suzuki (MSIL) post March quarter results.

“In Q4FY23, MSIL printed healthy performance on all fronts and ended the year with the highest-ever annual sales volume, exports, turnover and net profit. The revenue for the quarter grew by 20% YoY to Rs.320bn,” the brokerage said.

It said that the lean channel inventory, long waiting period, new/refresh launches, and stability in key raw material (RM) prices will support MSIL’s profitability over the next few quarters.

“We expect MSIL's revenue/PAT to grow at a CAGR of 13%/27% over FY23-25E, and value the company at 27x Sep-24E EPS to arrive at a TP of 10,331 and recommend outperform,” it added.

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