brokerage outlook: Hot Stocks: Brokerages on Paytm, Ambuja Cements, Indian Hotels and PI Industries

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

Morgan Stanley on Paytm: Equal-Weight | Target Rs 695
Morgan Stanley maintained an equal-weight rating on Paytm with a target price of Rs 695. “For Paytm Payments Bank, new guidelines could lead to additional revenues,” the investment bank stated.

“One97 Communications (OCL) should benefit as interchanged fees paid to Paytm Payments Bank move lower,” it added.

However, it said that it awaits clarity from management on net positive impact.

Jefferies on Ambuja Cements: Buy | Target Rs 490

Jefferies maintained a buy rating on Ambuja Cements with a target price of Rs 490. “The company targets 28% EBITDA by FY23-FY28 and it is doubling its capacity to 140MTPA,” it said.

UBS on Indian Hotels: Buy | Target Rs 400

UBS maintained a buy rating on Indian Hotels with a target price of Rs 400.

The global investment bank hosted Indian hotel management wherein Indian Hotels said that the management sees no signs of momentum slowing down.

“Traditionally Q3 is seasonally better for India. India’s hospitality story remains strong, even in Q4,” said the note.

JM Financial on PI Industries: Buy| Target Rs 3575
JM Financial maintained a buy rating on PI industries with a target price of Rs 3575. Investors have become cautious against earnings wonders created by one product, as seen in the case of Divi’s and Laurus.

PI’s dependence on pyroxasulfone is, thus, increasingly under the spotlight. “However, we think the comparison is misplaced,” said the note.

“We believe that the sun has not yet set on PI’s pyroxasulfone given i) PI’s pyroxasulfone is a case of structural growth whereas Divi’s and Laurus’ molecules were opportunistic, and ii) pyroxasulfone’s usage is rising due to its effectiveness,” the note added.

“We believe PI has enough ammunition to tackle the peak of pyroxasulfone and is unlikely to suffer the same fate as Divi’s and Laurus. We had earlier indicated (click here and here) how PI could deliver its 18-20% promised growth rate. We estimate an EPS CAGR of 17% over FY23-25E and maintain BUY with a Mar’24 target of Rs 3,575/share,” recommended the brokerage firm.

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