Check out the latest brokerage calls and analyst comments on the stocks in action today. Our coverage includes Paytm, HCLTech, Vodafone Idea, AU Small Finance Bank and Aptus Value Housing, along with sectors like power financiers.
UBS On Power Financiers
Initiate Buy Call On PFC, Target Rs 670/Sh
Initiate Buy Call On REC, Target Rs 720/Sh
Strong Growth Underpinned By Shift To Renewables And Infrastructure
Key Growth Support From Energy Transition And Infrastructure Financing
Stress Dynamics Different From Previous Cycle
Paytm
Jefferies On Paytm
Hold Call, Target Rs 420/Sh
Co Received Approval From FinMin For Downstream Invst In Payment Gateway Biz
If Granted From RBI, CO Will Be Able To Onboard New Online Merchants
Immediate Business Impact Could Be Marginal
See Diminishing Regulatory Concerns As A Positive
Post RBI Approval, Key Pending Issue Is NPCI Approval For New User Onboarding
MS On Paytm
Equal-Weight Call, Target Rs 500/Sh
Co Receives Govt Approval For Past Downstream Invst In Its Fully Owned Arm
Believe It Reduces Regulatory Overhang Incrementally
Will Track The RBI’s Response To Next Steps
HCLTech
MS On HCLTech
Overweight Call, Target Rs 1,705/Sh
Management Sounded A Bit Optimistic On The Near-term
Management Sounded A Bit Optimistic In The Financial Services Vertical
Medium-term Outlook For The Industry Is Positive
Co Has Balanced Portfolio And Strong Focus On Driving Wallet Share Gains
Jefferies On HCLTech
Hold Call, Target Rs 1,630/Sh
Co Articulated Medium-term Strategy, Aim Is To Deliver Ind Leading Organic Growth
Double-digit Growth In Medium-term Is Expected
Co Views GenAI As Growth And Margin Lever
HCLTech Expects Mid-single Digit Growth In Software As It Focuses On India/Africa
Citi On Voda Idea
Buy Call, Target Rs 22/Sh
SC Finally Agrees To Hear Voda Idea’s AGR Curative Petition
See SC’s Move As A Material Development As Matter Has Been Long Pending
A Favourable Outcome Could Significantly Reduce Co’s AGR Debt Burden
Potential Benefit Est At Rs 4-5/Sh Or Even Higher (>25% Benefit On Current Stock Price)
Current Base Case Target Of Rs 22 Does Not Factor In Any Reduction In Co’s AGR Dues
The Developments With Voda Idea Could Also Indirectly Benefit Indus Towers Too
Any Relief Would Benefit Bharti Airtel Too, Though Its Salience Is Far More Limited
HSBC On Credit Cards
Credit Card Spending Growth Increased To 19% YoY In July 2024
Industry’s Net Credit Card Issuance, Ex-One-Off, Recovered
Spend Market Share Improved For ICICI Bank, Axis Bank
Market Share Lost By SBICard & HDFC Bank
HDFC Bank Card Issuance Was Strong
Citi On Aptus Value Housing
Buy Call, Target Rs 358/Sh
Co Expanding Footprints In Maharashtra And Odisha
Will Add 20 Branches, Primarily In Andhra Pradesh, Telangana In FY25
Management Is Confident Of Sustaining 28-30% AUM Growth
Improved Login Productivity & Vintage Productivity To Further Support Growth
Retention Bonus, Disbursements Linked Incentives To Help Contain Attrition
Annual Outing Program And Referral Incentives To Help Contain Attrition
10-15 bps NIM Pressure Expected Due To Increase In Funding Cost For NBFCs
Citi On Au Small Bk
Neutral Call, Target Rs 684/Sh
Retains Credit Cost Guidance At 110-120 bps For FY25
Retains Credit Cost Guidance Despite Higher Industry-Wide MFI Concerns
Confident It Can Double Advances Over 3 Years
Deposits Do Not Act As Constraint To Growth
Deposits Challenge Is Raising Quality Of Deposits At A Cost
Lower NIM Contraction Are Upside Levers With Credit Cost Surprises A Downside Risk
CLSA On Adani Ports
Outperform Call, Target Rs 1,764/Sh
Core Ports Growing Traffic 3x Remains A Good Way To Play Indian Economy
Reduced Dollar Debt & Maturity Profile Should Make It A Play On Rupee Depreciation
Its M&A Strategy Looks To Have Paid Off
Gangavaram, Krishnapatnum & Karaikal Clocking FY24 EBITDA Margin Above Mundra
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