Hot Stocks: Brokerage view on Kaynes Technology, Zomato, Birlasoft and MGL

Morgan Stanley on Kaynes Technology: Overweight | Target: Rs 3845
Morgan Stanley maintained an overweight rating on Kaynes Technology but raised the target price to Rs 3,845 from Rs 2,440 earlier.

The global raised core EMS EPS by 10-14% over F25-26e. Sector tailwinds and a robust backlog is likely to drive sustainable growth in the core segment.

The company has set a revenue target of US$1bn by F28e and 75% is likely to be accounted for by the core EMS segment. The company has industry-leading margins.

Macquarie on Zomato: Sell | Target: Rs 100
Macquarie maintained a sell rating on Zomato with a target price of Rs 100. The global investment bank slashed FY25-26E earnings by 5-8% on lower Blinkit margin guidance.

Blinkit's order frequency was lower than QCom peers'. The stock is pricing in 16-35% 10-year GOV CAGR in Food Delivery-QCom, or scaling to US$16-20bn, alongside fully optimised margins.

The global investment bank raised FY26-27E by 1-6% on higher assumed Blinkit.

Nomura on Birlasoft: Buy | Target: Rs 860
Nomura maintained a buy rating on with a target price of Rs 860. The demand environment remains challenging, and margins are likely to remain rangebound, with investments needed.

The global investment bank said that the company will be on the lookout for potential M&A opportunities.

UBS on MGL: Buy | Target Rs 1600
UBS maintained a buy rating on MGL with a target price of Rs 1600. The company remained positive on the volume growth outlook.

The company is likely to benefit from the potential inclusion of natural gas in GST. LNG in transportation could scale up in coming years.

The global investment bank is building a conservative 6.6% volume CAGR over FY24-27E.

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