Hot Stocks: Brokerage view on GAIL, Tata Chemicals, HCC and ONGC
JPMorgan upheld a neutral outlook on GAIL India, while Morgan Stanley advised an underweight position on Tata Chemicals. Elara Securities commenced coverage on HCC, and Jefferies reaffirmed a buy recommendation on ONGC.
Brokerage firm maintained a neutral view on India, Morgan Stanley recommended an underweight stance on , initiated coverage on and Jefferies reiterated a buy call on .We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
JPMorgan on GAIL India: Neutral| Target Rs 184
JPMorgan maintained a neutral rating on GAIL with a target price of Rs 184. It is too early to worry about cash flow risks from the proposed new $7bn cracker.
The project is ~4x FY24E EBITDA/OCF and has little return on the current spreads. If confirmed, this could become an overhang on the stock, but completion is likely post 2030.
While the stock reacted negatively yesterday, the market is likely to focus on more near-term issues eventually. The valuations leave little upside potential for the stock.
Morgan Stanley on Tata Chemicals: Underweight| Target Rs 843
Morgan Stanley maintained an underweight stance on Tata Chemicals with a target price of Rs 843. The global investment bank believes that the share price will fall relative to the country index over the next 45 days.
The global investment bank has estimated that there is about an 80% + probability for the scenario. Tata Chemicals should see subdued soda ash earnings in F2025.
The valuations are tracking near +1sd and appear rich.
Elara Securities on HCC: Buy| Target Rs 63
Elara Securities initiated coverage on HCC with a buy rating and a target price of Rs 63. The standalone revenue and EBITDA CAGR of 20% each during FY24-27E with an earnings CAGR of 50%, due to lower interest cost.
The stock is poised to reclaim its last glory. The peak standalone debt of Rs 62bn in FY22 fell by 45% to 34bn in FY24. Pipeline trends: The company has $100bn inflows in FY25.
Jefferies on ONGC: Buy| Target Rs 390
Jefferies reiterated a buy rating on ONGC with a target price of Rs 390. The recent correction provided a buying opportunity.
ONGC's profitability is likely to stay elevated compared to past averages. The recent correction in stock appears overdone and provides an attractive entry point for investors.
The ramp-up in KG basin production in 3QFY25 and accretion to profitability are key triggers.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
The project is ~4x FY24E EBITDA/OCF and has little return on the current spreads. If confirmed, this could become an overhang on the stock, but completion is likely post 2030.
While the stock reacted negatively yesterday, the market is likely to focus on more near-term issues eventually. The valuations leave little upside potential for the stock.
Morgan Stanley on Tata Chemicals: Underweight| Target Rs 843
Morgan Stanley maintained an underweight stance on Tata Chemicals with a target price of Rs 843. The global investment bank believes that the share price will fall relative to the country index over the next 45 days.
The global investment bank has estimated that there is about an 80% + probability for the scenario. Tata Chemicals should see subdued soda ash earnings in F2025.
The valuations are tracking near +1sd and appear rich.
Elara Securities on HCC: Buy| Target Rs 63
Elara Securities initiated coverage on HCC with a buy rating and a target price of Rs 63. The standalone revenue and EBITDA CAGR of 20% each during FY24-27E with an earnings CAGR of 50%, due to lower interest cost.
The stock is poised to reclaim its last glory. The peak standalone debt of Rs 62bn in FY22 fell by 45% to 34bn in FY24. Pipeline trends: The company has $100bn inflows in FY25.
Jefferies on ONGC: Buy| Target Rs 390
Jefferies reiterated a buy rating on ONGC with a target price of Rs 390. The recent correction provided a buying opportunity.
ONGC's profitability is likely to stay elevated compared to past averages. The recent correction in stock appears overdone and provides an attractive entry point for investors.
The ramp-up in KG basin production in 3QFY25 and accretion to profitability are key triggers.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Source: Stocks-Markets-Economic Times
