Zensar Technologies
Brokerage:
Price Target: Rs 265
CMP: Rs 229
Upside: 15.7%
The brokerage sees potential for a ‘significant’ re-rating of the stock as valuations are expected catch up with its peer group on strong growth in FY23. The valuation of the mid-sized IT company, owned by the RPG Group, at an estimated Price to Earnings (PE) ratio of 12 times is one of the lowest among the mid-cap stocks it tracks.
Bharti Airtel
Brokerage: CLSA
Price Target: Rs 930
CMP: Rs 784
Upside: 18.6%
CLSA said Bharti is its top stock pick in the telecom sector for its strong growth and cash fl ow that will permit deleveraging even after the 5G outlay. The brokerage expects the company’s profi t to jump four times by FY25, while its gearing — amount of debt in proportion with equity — to drop to one time Earnings Before Interest Taxes Depreciation and Amortization (EBITDA).
Restaurant Brands Asia
Brokerage: Prabhudas Lilladher
Price Target: Rs 156
CMP: Rs 127
Upside: 22.8%
The brokerage has raised its target on the stock to Rs 156 from Rs 148, while retaining its ‘accumulate’ rating for long-term gains. “We believe RBA presents a compelling opportunity to play Burger King brand in India and Indonesia along with Popeyes in Indonesia,” said Prabhudas Lilladher in a note to clients.
Brokerage: Nomura
Price Target: Rs 566
CMP: Rs 450.95
Upside: 25.5%
Nomura said the company’s management addressed investors’ concerns on margins and debt in a recent meeting. The management, according to the brokerage, expects strong order prospects in FY23 and EBITDA margin to normalise to over 10% in FY24. Its debt could see a reversal by the end of FY23.
