Brokerage Radar: Amid the quarterly results season, shares of at least 7 companies are on the radar of brokerage firms today. These include stocks like Infosys, Reliance Industries, Axis Bank, Dixon Technology, LTIMindtree and Indus Towers. Due to the brokerage report, shares of these companies remain in focus today. Let us know what opinion the brokerage has given regarding these shares and what target prices have been set for them.
1. Infosys
Brokerage firm Banerstein has given the stock an “outperform” rating and a target of ₹ 2,330 per share. The brokerage says that the company performed well on all parameters of revenue, margin and income in Q3. Revenue growth estimates for FY25 have been raised to 4.5-5%.
Morgan Stanley has given the stock an “overweight” rating and a target of ₹2,150. He pointed to the company’s improving deal volume and strong cash flow. Whereas Jefferies has given buying advice in this stock and has set a target of Rs 2,250 for it. He described strong Q3 revenue growth as a positive surprise and expects 11% EPS CAGR in FY25-27.
2. Reliance Industries
Foreign brokerage CLSA gave the stock an “outperform” rating and a target of ₹1,650 per share. The brokerage said Q3 EBITDA and profit were better than estimates. Retail and upstream performance remained strong, while the grocery segment saw growth of 37%.
Morgan Stanley gave the company’s stock an “overweight” rating and a target of ₹ 1,662. It says Q3 earnings were better than expected and retail EBITDA grew by 9%. Jefferies has advised to buy the shares of Reliance and set a target of Rs 1,660 for it. The brokerage believes the possibility of Jio’s listing in FY26 along with strong performance in the retail and O2C segments could be big triggers.
3. Axis Bank
HSBC has given “buy” rating on Axis Bank but reduced the target to ₹1,170. The brokerage said deposit and loan growth in Q3 was lower than expected, which is likely to impact loan growth.
Jefferies has advised to buy this stock and kept a target of Rs 1,400 for it. According to the brokerage, third quarter profit was 5% above estimates. However, deposit growth remained at an average level.
Morgan Stanley gave Axis Bank an “overweight” rating and a target of ₹1,300, saying Q3 remained under pressure due to macro challenges, but the bank has focused on prioritizing profitability.
4. LTIMindtree
Brokerage has a mixed opinion regarding this stock. Morgan Stanley has given it an “overweight” rating and a target of ₹6,800. He believes the company’s Q3 results were good and the Q4 outlook shows no disappointment. However, the weakness in margins has already been factored into the market. He also said that the effects of productivity benefits given to top clients may become evident in the next few quarters.
At the same time, Nomura gave it a “Reduce” rating and kept a target of ₹ 5,070 for it. It says Q3 results showed modest gains in revenues and margins, but the pass-through of productivity benefits could impact growth in the near term. However, the deal pipeline remains strong.
5. Indus Towers
Brokerage firm CLSA gave it a “High Conviction Outperform” rating and a target of Rs 575 per share. The brokerage said Voda Idea has paid 70 per cent of the outstanding amount. This payment has improved the financial condition of the company and can boost investment in 4G/5G networks. CLSA expects 10% EBITDA CAGR, strong cash flow, 7% free cash flow yield and 23% ROCE by FY27 for the company.
6. Dixon Tech
Brokerage firm HSBC has advised to buy this stock and has set the target for it at Rs 19,900. He described FY24 as a strong year due to new client additions and expressed hope for further growth of the mobile and IT hardware business in FY25-26.
7. Havells
Foreign brokerage firm CLSA has given the stock an “outperform” rating and set a target of Rs 2,120 for it. Third-quarter EBITDA performance fell short of expectations, but consumer demand showed improvement.
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