Here are the top brokerage updates from December 3, 2024, covering major stocks across sectors:
Vedanta stock
- Brokerage: Bank of America (BofA)
- Rating: Neutral
- Target Price: ₹470
- Key Takeaways:
- FY25 aluminum cost of production guidance remains intact.
- Oil & Gas production expected to remain muted in the near term.
- Demerger process is in the final stages, with shareholder and creditor meetings lined up.
- Management confident of meeting Vedanta Resources Limited’s interest obligations through brand fees while maintaining normal dividend payouts.
JSW Steel stock
- Brokerage: Bank of America (BofA)
- Rating: Buy
- Target Price: ₹1,090
- Key Takeaways:
- Targets 50 MTPA capacity through brownfield expansions.
- Aims to reduce net debt-to-EBITDA ratio below 3x from the current 3.5x.
- Anti-dumping investigations remain ongoing, with trade uncertainties being monitored.
KPIT Technologies stock
- Brokerage: JPMorgan
- Rating: Overweight
- Target Price: ₹1,900
- Key Takeaways:
- Near-term softness is transient, not structural.
- EV and hybrid technology investments will continue, albeit gradually.
- QIP funds to be utilized for multiple tuck-in acquisitions.
- Base case upside of 42%, with a bear case downside of 10%.
Gujarat Gas stock
- Brokerage: Morgan Stanley
- Rating: Overweight
- Target Price: ₹614
- Key Takeaways:
- CNG price hike of 2%, the first of several expected increases in the coming months.
- State-level tax rationalization on natural gas could limit further price hikes.
- Despite a positive outlook, Morgan Stanley prefers GAIL and Reliance in the sector.
Mahindra & Mahindra (M&M) stock
- Brokerage: Citi
- Rating: Buy
- Target Price: ₹3,520
- Key Takeaways:
- Slower sequential growth in the short term but strong fundamentals driven by healthy reservoir levels and higher MSP.
- Positive farmer sentiment and robust progress in Rabi crop sowing expected to support tractor demand.
- Inventory fluctuations may lead to some volume volatility in the near term.
Bajaj Finance stock
- Brokerage: HSBC
- Rating: Buy
- Target Price: ₹7,740
- Key Takeaways:
- FY25-27 EPS estimates trimmed by 1-2% due to reduced fee and interest income.
- The company remains a value pick at current valuations, with strong fundamentals supporting its growth outlook.
Real Estate Stocks
- Brokerage: UBS
- Coverage and Target Prices:
- DLF: Buy, ₹1,005 – Highlighted as the best play in the luxury segment.
- Prestige Estates: Buy, ₹2,175 – Recognized for its strong diversified portfolio.
- Oberoi Realty: Neutral, ₹2,230 – Positioned as a key player in the Mumbai market.
- Key Takeaways:
- A sustainable upcycle is underway, supported by multiple tailwinds in residential and commercial segments.
- Residential demand continues to rise, while COVID-related uncertainties in the commercial segment have eased.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.