Hot Stocks: Brokerage view on Paytm, Zomato and Bajaj Finance

Brokerage firms like Bernstein have an outperform rating on Paytm, while JPMorgan has an overweight rating on Bajaj Finance. Meanwhile, Nuvama has a buy rating, and Macquarie has an underperform rating on Zomato, respectively.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Bernstein on Paytm: Outperform | Target price: Rs 600

Bernstein has maintained an ‘outperform’ rating for Paytm with a target price of Rs 600. The first regulatory catalyst has arrived, allowing new users to be onboarded, which could mark a bottom in Monthly Transacting Users (MTUs) that had been steadily declining due to previous restrictions.

This positive development comes after a series of negative actions over the past 3-4 quarters, offering welcome relief and increasing the likelihood of other favorable regulatory outcomes.

JPMorgan on Bajaj Finance: Overweight | Target price: Rs 7,300

JPMorgan has maintained an ‘overweight’ rating on Bajaj Finance and reduced the target price to Rs 7,300 from Rs 8,000.In Q2, a credit overshoot was observed alongside some asset quality strain. Loan growth remains strong at 29% year-on-year, with new business contributing 2-3%. However, margins are expected to stabilize as funding costs peak, although the mix will be unfavorable.

Nuvama on Zomato: Buy | Target price: Rs 325

Nuvama has maintained a ‘buy’ rating on Zomato and increased the target price to Rs 325 from Rs 285.

Zomato continues to drive growth across its business, and Nuvama expects the addition of Blinkit dark stores to accelerate faster than initially anticipated. While profitability may be delayed due to higher upfront costs, Nuvama believes this is the right strategy in a competitive quick commerce market.

Macquarie on Zomato: Underperform | Target price: Rs 100

Macquarie has maintained an underperform rating on Zomato with a target price of Rs 100.

The company has shown strong momentum, but there is no significant margin dilution at Blinkit. Food delivery margin expansion is lagging behind consensus expectations, and the QIP raises concerns about overall unit economics in the quick commerce industry amid increased competitive intensity.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)