Hot Stocks: Brokerages on Power Grid, ITC, JSW Steel, MGL, and Bharti Airtel

Global brokerage firms such as JPMorgan maintained an overweight rating on Power Grid, Motilal Oswal has a buy rating on ITC, Morgan Stanley remained underweight rating on JSW Steel, JPMorgan maintained an overweight rating on Mahanagar Gas, and Jefferies upgraded Bharti Airtel to buy.

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

JPMorgan on Power Grid: Overweight | Target: Rs 255
JPMorgan maintained an overweight rating on Power Grid with a target price of Rs 255. The global investment bank sees an increase in capex/growth outlook amidst the genco capacity upgrade to match power demand growth.

A stable 15.5% return on equity (ROE) on regulated projects in the FY25-29E tariff block is a key positive. An inexpensive valuation at 10x FY25E P/E and a 6.5% dividend yield make the stock attractive.

Motilal Oswal on ITC: Buy | Target: Rs 450
Motilal Oswal maintained a buy rating on ITC with a target price of Rs 450. Earnings visibility continues to drive outperformance. The Cigarette business outlook remains healthy, said the note. Other FMCG businesses' growth momentum remains strong, and the domestic brokerage firms see better times ahead. The outlook for the hotel business is also bright.

Morgan Stanley on JSW Steel: Underweight | Target: Rs 545
Morgan Stanley maintained an underweight rating on JSW Steel with a target price of Rs 545. Demand was muted and there was excess inventory in February. The export market remains dull. Overall, FY23 domestic production guidance of 23.6 mnt appears achievable, said the note.

JPMorgan on Mahanagar Gas: Overweight | Target: Rs 1040
JPMorgan maintained an overweight rating on Mahanagar Gas with a target price of Rs 1040. Unison acquisition positive read-through as it addresses volume growth concerns. The global investment bank sees no impact on dividend payout. “The company is our top pick in the India CGD sector,” said the note.

Jefferies on Bharti Airtel: Buy | Target: Rs 900
Jefferies upgraded Bharti Airtel to buy with a target price of Rs 900. Share gains among 4G users is driving ARPU for the telecom major. Intensifying focus on boosting ARPU and improving tariff outlook are all positives for the stock. An effective duopoly is in the works, and the risk-to-reward ratio is turning favourable.

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