Hot stocks: Brokerage view on SBI, Amara Raja and UPL
SBI, while JPMorgan has a neutral rating on Amara Raja. Citi also has a buy call on UPL.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-112276941»> Nomura on SBI: Buy | Target price: Rs 1,030
Nomura maintained a buy rating on SBI with a target price of Rs 1,030.
The bank reported healthy loan growth, though sequential deposit growth was soft. The loan-to-deposit ratio (LDR) stood at 69%, well below the 79% average for the banking sector. Asset quality remained stable, with SBI having the lowest retail slippages and non-performing loans (NPLs) among large banks. SBI continues to be Nomura’s top pick.
Nuvama on SBI: Buy | Target price: Rs 1,026
Nuvama has maintained a buy call on SBI with a target price of Rs 1,026.
Lower net interest margins (NIM) were offset by reduced operating expenses and lower provisions, while core NIM improved by 6 basis points QoQ. An increase in retail non-performing loans (NPL) was attributed to temporary salary delays. Nuvama has a strong outlook, with a favorable risk-reward profile. If SBI raises fresh equity, it would address a key overhang on the stock.
JPMorgan on Amara Raja: Neutral: Target price: Rs 1,435
JPMorgan maintained a neutral rating on Amara Raja with a target price of Rs 1,435.
Q1 results were in line with EBITDA expectations, and while revenue exceeded forecasts, this was offset by margin compression. JPMorgan notes that there are no negatives from the results, but guidance on margin trajectory will be important.
Citi on
