Hot Stocks: Brokerage view on JSW Steel, Eicher Motors, SBI, Sun Pharma and Nykaa

Brokerage firm Morgan Stanley maintained its overweight rating on JSW Steel, SBI, Sun Pharma, and Nykaa. The brokerage also initiated an equal-weight rating on Eicher Motors.

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

Morgan Stanley on JSW Steel: Overweight| Target Rs 580
Morgan Stanley maintained an overweight rating on JSW Steel with a target price of Rs 580. “Reiterated volume guidance of 24.2mt (+8.7% YoY) for FY24 for domestic business,” it said.

“Steel prices could remain volatile in the near term. The positive impact of $100/t via coking coal prices as moderation in spot prices in the last 1 month. Spreads are expected to be range-bound over the next few months,” it added.

Morgan Stanley on Eicher Motors: Equal-Weight| Target Rs 3353
Morgan Stanley maintained an equal-weight rating on Eicher Motors with a target price of Rs 3353. The brokerage expects continuous growth in the domestic market.

“Royal Enfield (RE) has expanded its distribution network and market recovery will add to more volumes,” it said.

“RE's share of first-time buyers improved from 13% to 18%, over the past few years. The company is committed to launching its EV by FY26. Hunter has been able to get new customers,” it added.

Morgan Stanley on State Bank of India: Overweight| Target Rs 715
Morgan Stanley maintained an overweight rating on SBI with a target price of Rs 715. According to the brokerage, the loan growth is expected to moderate but be steady at 12-14% in FY24.

It said that the growth is likely to be driven by retail, SME, and mid-corporate loans. “Margins in FY24 are likely to remain in the tight range as a catch-up in funding cost will be offset by lagged re-pricing of the MCLR book. Credit costs are expected to remain below normalized levels,” it said.

Morgan Stanley on Sun Pharma: Overweight| Target Rs 1170
Morgan Stanley maintained an overweight rating on Sun Pharma with a target price of Rs 1170. The company recorded a high single-sales digit growth for FY24.

“The near-term cost pressures are due to higher R&D and sales expenses. Speciality businesses shall grow faster than overall revenues,” it said.

Morgan Stanley on NYKAA: Overweight| Target Rs 188
Morgan Stanley maintained an overweight rating on Nykaa with a target price of Rs 188. According to the brokerage, the management has been expecting faster growth in the Beauty Personal Care segment GMV than the e-commerce industry.

“The company plans to add 50 new stores in FY24. Gross margins in the fashion segment could be higher than in the BPC segment,” it said.

“Margin drivers include lower market expenses and rising ad incomes. Attrition is normal but churn rates are lower than industry,” it added.

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