Brokerage Radar: Brokerage firms have released their reports on 5 new stocks before the start of trading on Monday, November 25. It has shares like Reliance Industries, NTPC, SBI Card, Oberoi Realty and DLF. Apart from this, HSBC has also expressed its opinion regarding tractor industries. Due to these reports, all these shares remain in focus during today’s trading. Let us know what is the opinion of brokerage firms regarding these shares and what target prices they have set for them.
1. Reliance Industries
Brokerage firm Citi has increased the rating of this stock to ‘Buy’ and has set a target price of Rs 1,530 for it. The brokerage said that after the recent weakness in the stock, the risk-reward ratio has now become favorable. The company’s refining margins are expected to improve further as exports from China have declined. Jio is well positioned to benefit from future tariff hikes. However, the softness on the retail front may continue for another two quarters.
2. NTPC
Foreign brokerage firm Bernstein has given outperform rating to the stock and has set a target price of Rs 440 for it. The brokerage said the stock looks attractive due to pick-up in power demand, evening drawdown and debt-related gains. He said that there are not many factors for a sharp rise in the stock further, but there is no reason to go to the downside either. The stock still trades at 16x FY25 Earnings and 10x EV/EBITDA, which is in line with its global competitors.
3. SBI Card
Morgan Stanley has given equal weight rating to this stock and has set a target price of Rs 650 for it. The brokerage said its spending market share remained largely stable in October at around 15.8 per cent. Spending figures for October show that the impact of RBI’s notification still remains on the company.
4. Oberoi Realty
Morgan Stanley has also given equal weight rating to this stock and has set a target price of Rs 2,060 for it. The brokerage said the management expects strong demand due to the favorable economic environment. The ASP increase should boost pre-sales growth. Projects have seen ASP growth of 30-40% in 3-4 years. Its strong focus on luxury segment still remains, which helps in strong margins
5. DLF
Morgan Stanley has given equal weight rating to this stock and has set a target price of Rs 910 for it. The brokerage said pre-sales are expected to grow at a CAGR of 10-12%. EBITA margins are expected to expand to 36-38%. RoI is currently at 7.5% and without any changes it should be double digits in 3-4 years.
HSBC’s opinion on tractor industry
HSBC has advised to buy shares of Mahindra & Mahindra (M&M) from the tractor industry and has set a target price of Rs 3,390 for it. At the same time, it has given ‘Reduce’ rating to the shares of Escorts Kubota and has set a target price of Rs 3,180 for it. HSBC said it expects strong growth in tractor sales during FY25-27 due to high water levels in dams and reservoirs and La Nina.
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