Hot Stocks: Brokerages view on Polycab, KEI Industries, RIL and IGL
Polycab India and KEI Industries. JPMorgan maintained an overweight rating on RIL and Morgan Stanley has an underweight rating on IGL.
We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Goldman Sachs on Polycab India and KEI Industries: Buy
Goldman Sachs initiated coverage with a buy rating on Polycab India and a target of Rs 5750 while on KEI Industries it has kept a target of Rs 2730.
Both companies are in a prime position to benefit from the nation's infrastructure push.
In the near-to-medium term, companies have enough legs to grow up to 2x GDP.
The global investment bank sees incremental growth stemming from sunrise industries such as electric vehicles.
It prefers Polycab over KEI due to its broader distribution network and faster growth prospects.
JPMorgan on RIL: Overweight| Target Rs 2810
JPMorgan maintained an overweight rating on RIL with a target price of Rs 2810. The telecom and retail are now 50% of consolidated EBITDA.
Commodity volatility has a lower impact on earnings.
Refining complexity/flexibility should allow it to outperform benchmarks.
Positive earnings surprise was the acceleration of retail topline or telecom tariff hikes. The valuations appear reasonable.
Morgan Stanley on IGL: Underweight| Target Rs 432
Morgan Stanley maintained an underweight rating on IGL with a target price of Rs 432.
LNG trucking is seeing its ecosystem slowly develop from a nascent stage.
IGL's tie-up with a logistics operator should help improve the ecosystem. LNG trucking does provide a new demand growth area that is not priced in by markets.
Fuel retailers (HPCL, BPCL, and IOCL) could be bigger beneficiaries of LNG trucking.
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