Hot Stocks: Brokerages view on HAL, Bajaj Finance, ICICI Bank and M&M Financial Services

Brokerage firm UBS initiated coverage on HAL with a buy rating, and CLSA is positive on financial stocks like Bajaj Finance, ICICI Bank and Mahindra Financials. Motilal Oswal has a buy rating on IIFL Finance.

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

UBS on HAL: Buy| Target Rs 3600

UBS initiated coverage on HAL with a buy rating and a target price of Rs 3600. HAL is a credible defence compounder in the making.

Revenues are set to rise at 16% CAGR. The company could benefit from $60bn of more Aircraft defence orders from now till FY28E.

Own design manufacturing is likely to drive high double-digit EPS CAGR and 20% ROE. HAL is set to triple its order book to Rs.2.4 tn by FY26.

CLSA on Financials: Bajaj Finance, ICICI Bank and M&M Financial Services
CLSA prefers companies like Bajaj Finance, M&M Financial Services, and ICICI Bank in the financial space which are its top picks.

The global brokerage firm sees more positives than negatives. It expects a 13%-14% system loan growth and the pressure on the net interest margin (NIM) is likely to be temporary.

CLSA expects 2024 to be a decent year for Indian financials. The NIM compression will be temporary.

Deposit repricing to catch up over time. Top picks include companies like Bajaj Finance, ICICI Bank and M&M Financial Services.

Motilal Oswal on IIFL Finance: Buy| Target Rs 800
Motilal Oswal maintained a buy rating on IIFL Finance with a target price of Rs 800. IIFL Finance (IIFL) is a diversified NBFC with a strong presence in various retail business segments. Its core products include gold loans, home loans, microfinance, LAP and unsecured business loans.

IIFL’s consolidated AUM stood at Rs 731b as on Sep’23 and it delivered an AUM CAGR of 22% over FY21-1HFY24. IIFL is present in ~26 states/UTs and has a distribution network of ~4,600 branches.

The company has an asset-light business model with co-lending and assignments contributing ~15% and ~25% to the AUM mix, respectively.

(You can now subscribe to our ETMarkets WhatsApp channel)

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