Brokerage Radar: Investec upgrades Union Bank to 'Buy', Kotak downgrades Concord Biotech

Brokerage Radar

Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes HCLTech, Axis Bank, Hero MotoCorp and more.

Nomura On Macrotech Developers
Initiate Buy, Target `1,600/Sh
Solid Earnings Visibility With Right Capital-Allocation Strategies; Visible Rerating Triggers
Expect Pre-sales Growth At 20% CAGR Over FY25-26
Co Has Ample Potential To Exceed Business Development Goals To Maintain Future Growth
Palava On Cusp Of Infra Upgrades, To Benefit From Both Volume & Price Growth
Stock Currently Trades At 32x 2025 EV/EBITDA
Key Risks: Slowdown In India Residential Market Or Delay In Infrastructure Upgrades Around Palava

Investec On Union Bank
Upgrade To Buy, Target `151/Sh
Over Past 3.5 Months Co Corrected Nearly 30%
Correction Happened Over Concerns Around Higher Corporate Asset Quality Stress
Slower Deposits Growth For System & Regulatory Headwinds Led To Sector Underperformance
At 0.8x P/B & 3.8% Div Yield, Bank Is Now Trading Close To Historical Average
There Is Enough Margin Of Safety Built Into Both Valuations & Est
Core PPOP Is Superior To Peers & Hence Allows Bank To Absorb Higher Credit Costs

Kotak Instl Eq On Concord Bio
Downgrade To Reduce, Target `1,950/Sh
Co’s Topline Growth Over Past Few Quarters Has Been Driven By Low-margin Formulations Segment
Topline Growth Via Low-margin Formulations Segment Is The Not The Ideal Mix
Co Posted A Slightly Below Par API Growth Print In FY24 & Q1FY25
Expect A Pick-Up From Q2
Do Not Expect Any Major Delta On Overall Earnings Given Miniscule Scale Of Co’s CDMO Segment
Sharp 32% Rally In Stock Price Over Past 1 Month Renders Valuations Expensive

CLSA On HCLTech
Hold Call, Target `1,556/Sh
Co Noted Revival In BFSI, But In Different Areas & With Different Clients Compared To Infosys & Wipro
GenAI Views As An Opportunity For Productivity Improvements Across Software Engineering, Testing

CLSA On Axis Bank
Outperform Call, Target `1,400/Sh
Co Reiterated Its Strategy Of Profitable Growth
For Deposits, It Will Target Non-Resident Indians & Affluent Clients, Improve Branch Productivity
Partnerships To Be Enhanced For Granular Deposit Growth
Co Believes Credit Costs For The System & The Bank In FY24 Are Unsustainable
A Net Credit Cost Of 0.97% In Q1 Is Not Reflective Of Expectations For FY25

Macquarie On Indus Towers
Underperform Call, Target `310/Sh
No Longer The Leader As 2-3 Players Consolidate
Brookfield Has Concluded 100% Acquisition Of American Towers India Biz At An EV Of $2.2 Bn
Brookfield Will Combine Its India Telecom Infra Under New Brand 'Altius'
While Jio Almost Entirely Uses Summit In Rural Sites, Co Is Indus' Tenant In Certain Urban Sites
FY24 Could Represent Peak Earnings For Co If Voda-Idea Continues To Gradually Lose Share

Nomura On Bharat Forge
Neutral Call, Target `1,789/Sh
Defense Share Can Rise To 25% By FY30
Defence & Industrial Segments Likely To Offset Cyclical Slowdown In Global CVs
Upside Risks Include Furher Orders For Defense Exports
Increased Traction In Aerospace & Other Non-Auto Segments Is Also Upside Risk
Downside Risk Includes Steeper Decline In Global CVs & Slower Margin Expansion Of Global Arms

UBS On Hero MotoCorp
Sell Call, Target `3,350/Sh
Honda Confident Of Replacing Hero As Number 1 In FY25
Co Has Already Managed A Narrow Lead In April-August Dispatches
Honda Management Aims To Surpass Hero On Retail Front As Well For FY25
Start Of Festive Season Is Already Giving A Head-Start To Honda
Month To Date Retail Market Share Lead Of 370 bps Over Hero
As Per Co, Strong Demand For Scooters (Especially In Smaller Cities And Towns) Is Driving The Gain
Robust Demand For Motorcycles, Including Shine 100, Is Driving The Gain
Co Plans To Build On This With A Foray Into EVs

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.