Hot Stocks: Brokerage view on Vedanta, AU Small Finance Bank, Info Edge and Hindalco

Brokerage firm JPMorgan downgraded Vedanta to a neutral rating, maintained underweight stance on Hindustan Zinc and retained overweight on Hindalco.

Citi downgraded AU Small Finance Bank to neutral and Macquarie has an underperform rating on Info Edge.

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

JPMorgan on Vedanta and Hindalco:
JPMorgan downgraded Vedanta to neutral from overweight earlier and has also slashed its 12-month target price to Rs 280 from Rs 350.

The global investment bank maintained an underweight rating on Hindalco but slashed its target price to Rs 205 from Rs 235 earlier.

“A sharp decline in the LME zinc prices drives 23% EPS cuts for FY 24/25. FY24 is likely to be a challenging year for Vedanta if LME Zinc and aluminum prices do not recover,” it said.

“We expect the dividend payout to remain elevated given the debt repayments at an unlisted parent,” it added.

Citi on AU Small Finance bank: Downgrade to Neutral | Target Rs 765
Citi downgraded AU Small Finance Bank to neutral with a target price of Rs 765.

“The net interest income (NII) growth is estimated at 22%. Yield improvement is unlikely to be meaningful,” it said.

“Downgrade on valuations, and from a fundamental perspective, upside levers are limited. Credit costs to normalize, and overhead costs elevated on investments,” it added.

Macquarie on Info Edge: Underperform| Target Rs 3000
Macquarie maintained an underperform rating on InfoEdge with a target price of Rs 3000.

According to the brokerage, recruitment profitability is at its peak, and the growth rate is likely to moderate while other verticals will see a long road to profitability. “We expect underperformance also owing to markdown risk for the investment book,” said the note.

The global investment bank added Info Edge to Macquarie's Asia Marquee Sell list.

JPMorgan on Hindalco: Overweight | Target Rs 490
JPMorgan maintained an overweight rating on Hindalco with a target price of Rs 490.

“Novelis has broadly contracted out the entire beverage can capacity at its upcoming plant. The near-term earnings are strong for Hindalco,” it said.

“We continue to see Hindalco trade in a wide range (Rs 350-500) over the next 1-2 years, given heavy capex. We believe that at current levels, the risk-reward is favorable,” it added.

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