Hot Stocks: Brokerages on ICICI Bank, RIL, Tata Steel and Asian Paints

Motilal Oswal as well as Jefferies recommend a buy rating on Reliance Industries post March quarter results.

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

Morgan Stanley on Paints: Underweight on Asian Paints & Kansai Nerolac

Morgan Stanley maintained an underweight rating on Asian Paints & Kansai Nerolac with a target price of Rs 2546 and Rs 322 respectively.

Rising competition is the key theme for the paints segment. There is no demand-supply mismatch currently.

The global investment bank expects competition to intensify as a new player comes in. “We believe risk is yet to be completely reflected in valuations. Maintain Underweight on Asian Paints & Kansai Nerolac,” said the note.CLSA on ICICI Bank: Buy| Target Rs 1200
CLSA maintained its buy rating on ICICI Bank with a target price of Rs 1200. “The private sector bank recorded its highest earnings certainty over the next 3 years,” CLSA said.

It remains CLSA’s top pick. The global investment bank increased earnings estimates by 2-4%.

“The growth remains strong, and the future commentary was confident. The net interest margin (NIM) spike continues, and deposit accretion is not a big challenge.

The Core PPOP was up by 40% on a YoY basis and the bank will invest in growth in FY24,” said the note.

Motilal Oswal on RIL: Buy| Target Rs 2800
Motilal Oswal maintained its buy rating on RIL post March quarter results with a target price of Rs 2800.

“Standalone numbers shine, and the consumer business is going steady. Value refining & petrochemical segments at 7.5x EV/EBITDA,” it said.

Jefferies on RIL: Buy| Target Rs 3125
Jefferies maintained its buy rating on RIL post March quarter results with a target price of Rs 3100.

“The company recorded a healthy beat on 02C & Jio, comforting leverage on guidance,” it said.

“Jio generated healthy FCF with elevated 5G capex possibly opening the next leg of growth. The valuation is favourable, although net- debt rose.The management allayed leverage concerns,” it added.

The global investment bank upgrade FY24/25E EBITDA 3%, and retains a buy with a target price of Rs 3,125

JPMorgan on Tata Steel: Overweight| Target Rs 150
JPMorgan maintained an overweight rating on Tata Steel with a target price of Rs 150. Tata Steel trades at 4.4x FY25E EV/EBITDA.

“Tata Steel can deliver 6-7% volume CAGR in India till 2030. Potential UK capex remains a key overhang for the stock,” it said.

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