Hot Stocks: Brokerage view on Maruti Suzuki, M&M Finance, Raymond and NTPC (labcalindia)

Brokerage firm Jefferies remains positive on NTPC, Power Grid and JSW Energy in the power sector. Morgan Stanley maintained an overweight rating on Maruti Suzuki while Jefferies retained a hold rating on M&M Finance and a buy rating on Raymond.

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

Jefferies on Power Sector: NTPC, Power Grid, and JSW Energy remain top picks

Jefferies’ top picks in the power sector are NTPC, Power Grid, and JSW Energy. Power demand trends are driving the rally, but investors need to be selective. On the other hand, IEX and Tata Power have “underperform” ratings.

Peak power demand has outpaced availability most days since the last fortnight. Merchant power prices are trading at the cap of Rs10/unit in the first three days of September.

Irregular rainfall patterns are impacting hydro utilization. Regular power demand is being met at the moment.

Morgan Stanley on Maruti Suzuki: Overweight| Target Rs 11,963

Morgan Stanley maintained an overweight rating on Maruti Suzuki with a target price of Rs 11,963. The brokerage firm expects a higher average selling price (ASP) owing to an increase in the SUV mix.

A higher SUV mix is likely to drive EBIT margins. The global investment bank increased EPS estimates by 4%/8% for FY24/25.

Jefferies on M&M Finance: Hold| Target Rs 295

Jefferies maintained a hold rating on M&M Finance with a target price of Rs 295.

The company has a healthy disbursement growth. The asset quality remains rangebound. Collection efficiency at 96% was stable.

At 2.1x FY24E core BV, valuation upside appears limited given 13-14% ROE outlook.

Jefferies on Raymond: Initiate buy| Target Rs 2600

Jefferies initiated coverage on Raymond with a buy rating and a target price of Rs 2600. The global investment bank eyes growth and simplification.

It has addressed past investor concerns on debt and corporate structure. The company is already a net cash and is set to list lifestyle & real estate businesses separately in <12 months.

Growth focus is visible across businesses, and the global investment bank expects Raymond to grow revenues/earnings at 13%/24% CAGR over FY23-26.

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

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