JPMorgan has reaffirmed its Overweight stance on KPIT Technologies, citing transient challenges and robust long-term prospects in the EV and hybrid space.
Bank of America (BoFA) remains optimistic about JSW Steel, underscoring its expansion plans and efforts to strengthen financial metrics.
Meanwhile, Motilal Oswal sees a bright outlook for Adani Ports & SEZ (APSEZ), driven by its integrated logistics model, diversified cargo mix, and significant growth in cargo volumes.
We have compiled a list of recommendations from top brokerage firms, sourced from ETNow and other outlets:
JPMorgan on KPIT Technologies: Maintain Overweight with target price of Rs 1,900 | LTP Rs 1,341 | Upside 41%
JPMorgan maintains an Overweight rating on KPIT Technologies with a target price of Rs 1,900, implying a potential upside of 41% from the last traded price of Rs 1,341.
The brokerage views KPIT as a “fallen hero” with the potential to regain its strength. It believes that the current softness in performance is transient rather than structural, indicating that the companyβs fundamentals remain intact.
Despite a gradual pace, investments in the electric vehicle (EV) and hybrid space are expected to persist, supporting KPITβs long-term growth prospects.
Furthermore, the proceeds from the recent Qualified Institutional Placement (QIP) will likely be deployed for multiple tuck-in mergers and acquisitions (M&A) to enhance capabilities and expand its offerings.
JPMorgan projects a base case upside of 42%, while the bear case suggests a potential downside of only 10%, underlining a favorable risk-reward scenario.
BofA on JSW Steel: Maintain Buy with target price of Rs 1,090 | LTP Rs 989 | Upside 10%
Bank of America (BoFA) maintains a Buy rating on JSW Steel with a target price of Rs 1,090, indicating a potential upside of 10% from the last traded price of Rs 989.
The brokerage highlights ongoing anti-dumping investigations, which could have implications for industry dynamics.
JSW Steelβs ambitious plan to achieve a production capacity of 50 million tonnes per annum (MTPA) will be entirely through brownfield expansions, showcasing its focus on leveraging existing infrastructure.
Additionally, the company aims to strengthen its financial position by reducing its net debt-to-EBITDA ratio to below 3x, compared to the 3.5x reported in Q2, reflecting its commitment to financial discipline and long-term sustainability.
Motilal Oswal on Adani Ports & SEZ (ADSEZ): Buy | Target Rs 1,530 | LTP Rs 1,215 | Upside 25%
Motilal Oswal maintains a Buy rating on Adani Ports & SEZ (ADSEZ) with a target price of Rs 1,530, indicating a potential upside of 25% from the last traded price of Rs 1,215.
The brokerage believes that ADSEZ is well-positioned to continue outpacing industry growth and gaining market share.
The integration of its logistics business with its ports operations is enhancing its service offerings and transforming the company into a comprehensive transport utility.
ADSEZ is expected to surpass Indiaβs overall growth, supported by its strategically balanced port mix across the western and eastern coastlines and a diversified cargo portfolio.
The companyβs significant investments in its port and logistics businesses further underline its growth ambitions.
Motilal Oswal projects a 10% growth in cargo volumes over FY24-27, which is anticipated to drive a CAGR of 15% in revenue and EBITDA, and an impressive 21% CAGR in PAT during the same period, reflecting strong financial performance potential.
(With inputs from ETNow)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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