Hot Stocks: Brokerage view on Indian Hotels, GMM Pfaudler and Canara Bank

Brokerage firm Motilal Oswal maintained a buy rating on Indian Hotels, Axis Capital retained a buy rating on GMM Pfaudler, and JM Financial has a buy on Canara Bank.

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

Motilal Oswal on Indian Hotels: Buy| Target Rs 390
Motilal Oswal maintained its buy rating on Indian Hotels with a target price of Rs 390. Rapid scaling up of margin is accretive for new businesses, it said.

Qmin (food delivery app) expansion across verticals is likely to drive growth, believes the brokerage. It further expects a strong demand momentum of FY22 to continue in the coming year as well.

It expects Revenue/EBITDA of 31%/79% over FY22-25E.

Axis Capital on GMM Pfaudler: Buy| Target Rs 2644
Axis Capital maintained a buy rating on GMM Pfaudler with a target price of Rs 2644. GMM Pfaudler is a play on the manufacturing shift of chemicals from China, it said.

The stock trades at P/E multiples of 36.2x FY23E. “The brokerage firm expects the company to grow EPS at a CAGR of 61% over FY22-25E,” the note said.

JM Financial on Canara Bank: Buy| Target Rs 345-365
JM Financial remains positive on Canara Bank and expects it to hit a target of Rs 345-365 in the next 1-2 quarters.

“We expect Canara Bank earnings recovery to be driven by a) credit cost normalisation (1.3% by FY24E), b) improvement in margins and c) sustained growth momentum,” said the note.

Shift to the new tax regime would also aid in the improvement of Return on Asset (RoA) to 0.7%/0.8% by FY23E/24E, it said.

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