Hot Stocks: Brokerage take on TCS, Zomato, Federal Bank, ABB, Vedant Fashions and Prestige Estates

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

Jefferies on TCS | Target: Rs 4,615
Jefferies upgraded the stock from 'Hold' to 'Buy' and raised the target price to Rs 4,615 from Rs 4,030. This upgrade follows TCS' Q1 results surpassing the estimates of the US brokerage, with expectations of a return to growth in its key verticals and markets.

Net hiring was at a 7-quarter high, reflecting emerging signs of revival, Jefferies said. TCS offers value relative to Nifty as its current PE premium is below its 5-year average.

UBS on Zomato | Target: Rs 260
UBS has maintained a 'Buy' view on the counter and hiked the target price to Rs 260 from Rs 250. Industry volume growth was 1% MoM in June, adjusted for the number of days. It said that the quarter gone by saw a push and pull between Zomato and its rival Swiggy. It estimates Zomato's GMV QoQ growth for Q1FY25E at 9%.

UBS on Federal Bank: Buy | Target: Rs 250
UBS has upgraded its rating to 'Buy' from 'Neutral' and hiked the target price to Rs 250 from Rs 180 on favourable risk-reward. It expects a return on assets (RoA) accretion-based re-rating aided by near-term catalysts. The re-rating catalyst will also be clarity on the new CEO and visibility on future strategy, it said in a brokerage note.

UBS on ABB India: Buy | Target: Rs 9,100
UBS has downgraded the stock to 'Neutral' from 'Buy' but hiked the target price to Rs 9,100 from Rs 8,830 holding that there is limited room for valuation re-rating though earnings are likely to remain supportive. It said that two factors will determine if UBS would again turn positive on the counter viz. higher quarterly order run-rate and robust margins in emerging portfolios.

The brokerage stated that a quarterly order run rate surpassing Rs 3,800 crore from mobility or higher base order growth would drive improved earnings growth. Additionally, robust margins in the electrification sector's emerging portfolio are exceeding the brokerage's expectations for ABB. The Zurich-based firm views ABB as offering the best exposure to emerging infrastructure and niche products across conventional and new segments.

Axis Capital on Vedant Fashions | Target: Rs 1,150
Axis Capital downgraded the stock from 'Buy' to 'Add' and reduced the target price to Rs 1,150 from Rs 1,200. The brokerage noted that fewer wedding dates in Q1 will adversely affect the outlook, expecting subdued performance for Q1FY25. It anticipates demand to pick up from H2FY25 onward with more wedding dates. Axis has also lowered the EPS forecast due to weaker-than-expected Q1 results.

Morgan Stanley on Prestige Estates: Overweight | Target: Rs 1,770
Morgan Stanley has maintained an 'Overweight' stance on the scrip with a target price of Rs 1,770. It said that the Q1 pre-sales were inline with the estimates. Q1 momentum was weak due to a lag in approvals and launches and the situation is expected to pick up in H2 based on a series of launches.

MS expects total launches worth Rs 60,000 crore in FY25, roughly 3X of FY24. "Stock could underperform based on weaker Q1, but we believe that would be an opportunity before a strong H2," this brokerage added.