Hot Stocks: Brokerage view on Dalmia Bharat, Axis Bank, Kotak Bank and Aurobindo Pharma

Morgan Stanley on Dalmia Bharat: Overweight| Target Rs 2450

Morgan Stanley maintained an overweight rating on Dalmia Bharat with a target price of Rs 2450. The company registered a big EBITDA miss led by both realizations and opex in March quarter results.

Strong volumes were positive, but the global investment said that it seeks more details. The variable cost per ton was much higher than estimated.

Macquarie on Axis Bank: Outperform| Target Rs 1300

Macquarie maintained an outperform rating on Axis Bank with a target price of Rs 1300. Strong granular deposit growth is encouraging for the private sector lender.

The bank recorded a PAT beat. Higher fee income, treasury gains and NIMs partly offset by higher credit costs.

Investors should focus on Loan/Deposit ratio (LDR) which might remain under pressure, and net interest margins (NIMs) are likely to drive profitability.

Jefferies on Kotak Mahindra Bank: Hold| Target Rs 1970

Jefferies maintained a hold rating on Kotak Mahindra Bank but reduced the target price to Rs 1970 from Rs 2050 earlier.

The Reserve Bank of India (RBI) has pointed to material gaps in 's digital & security platforms over past 2 years.

HDFC Bank faced similar action in 2020 and it took 9-15 months to clear issues. If resolution takes >6mths, it could affect revenues and costs.

Credit cards have been among the fastest-growing segments for Kotak with +20% YoY growth in customers & +50% growth in values.

Investec on Aurobindo Pharma: Buy| Target Rs 1350

Investec maintained a buy rating on Aurobindo Pharma with a target price of Rs 1350. The global investment bank expects earnings momentum to sustain as it remains a big beneficiary of the US generic macro improvement.

A ramp up in PenG production is likely to aid earnings momentum, is a source of EPS upgrades. The stock trades at 15xFY26E and is among the least expensive stocks in the sector.

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