Hot Stocks: Brokerage view on L&T Finance, Federal Bank, D-Mart and RBL Bank
Citigroup maintains sell rating on RBL Bank with Rs 257 target. Macquarie has outperform rating on D-Mart with Rs 4500 target. Avenue Supermarts shows stable sales growth. Federal Bank also under Citigroup's sell rating at Rs 135.
Brokerage Citigroup maintained a sell rating on , Morgan Stanley maintained an underweight rating on L&T Finance, Citi has a sell rating on , and Macquarie maintained an outperform rating on D-Mart.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Citigroup on RBL Bank: Sell| Target Rs 257
Citigroup maintained a sell rating on RBL Bank with a target price of Rs 257. The bank has seen a steep uptick in deposit growth. Loans sustained 19% YoY growth.
The global investment bank believes that a large part of deposit flows would have accrued towards the end of the quarter.
The net interest margins (NIMs) will moderate on a QoQ basis as the build-up of liquidity through the quarter will offset the scale-up of high-yielding advances.
Credit costs will stay elevated within the guided range of 1.6-1.7%. Consequently, the return on assets (RoA) print is expected to be closer to 1%.
Macquarie on Avenue Supermarts: Outperform| Target Rs 4500
Macquarie maintained an outperform rating on Avenue Supermarts with a target price of Rs 4500. The company has delivered broadly in-line sales growth, and the store additions were ahead of estimates.
The company is showing steady improvement in the sales growth trajectory. This was a healthy contrast from the last few quarters, which saw weak pre-quarterly commentary.
Citigroup on Federal Bank: Sell| Target Rs 135
Citigroup maintained a sell rating on Federal Bank with a target price of Rs 135. Advances growth pick up and the deposits growth was higher than expected.
The net interest margin (NIMs) trajectory will be key to watch for; expect marginal improvement QoQ. Earnings to be impacted by wage revision.
Morgan Stanley on L&T Finance: Underweight| Target Rs 129
Morgan Stanley maintained an underweight rating on L&T Finance with a target price of Rs 129. The company has delivered robust retail loan book growth and share of retail in total AUM continues well on track.
“We await further details about margins, credit costs, asset quality, etc., in Q4,” said the note. The company appears to be moving in the right direction for the long term, but valuation looks expensive.
(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
