Hot Stocks: Brokerage view on Paytm, Policy Bazaar, Cummins India and Quess Corp

Brokerage firm Nuvama remains positive on Quess Corp, Morgan Stanley recommended an Equal Weight rating on PB Fintech, and Citigroup has a sell rating on Paytm.

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

Nuvama on Quess Corp: Target Rs 630

Nuvama sees limited downside in Quess Corp and sees a strong value unlocking in the near future. There are high odds of medium-term upside.

The investment bank raised the target price to Rs 630 from Rs 580 earlier. The option to own pure staffing is an attractive one.

Quess’s staffing business alone should be valued around the current market cap.

Morgan Stanley on PB Fintech: Equal Weight| Target Rs 1010

Morgan Stanley maintained an Equal Weight rating on PB Fintech with a target price of Rs 1010. The company has received in-principle approval for an upgrade to composite insurance.The move to enable its entry into reinsurance broking. The license will allow it to bring more technology, process control and data analytics-based innovation into a reinsurance capacity.Reinsurance pricing for Policy Bazaar-originated business could improve.

Citigroup on Paytm: Sell| Target Rs 550

Citigroup maintained a sell rating on Paytm with a target price of Rs 550. The global investment bank believes that Paytm is likely to announce new bank partnerships.

Paytm UPI VPAs may shift to another bank(s), pending RBI/NPCI approval. New partnerships would be significant positives for the ongoing business.

Paytm may see elevated user and merchant churn in the near term. The growth outlook in lending and device rollouts may need to be revisited.

Paytm is valued at 30x FY25e EV/Adj EBITDA. The company has a healthy net cash position, and the likely decline in the cash burn in the future do not support a High-Risk rating.

Key downside risks: competition, regulatory concerns, monetization and profitability

Citigroup on Cummins India: Target Rs 3039

Citigroup maintained a positive view on Cummins India and raised the target price to Rs 3039 from Rs 2635 earlier.

The company has also increased our FY24E/FY25E/FY26E EPS by 19% /17%/14%. It expects a ~300bp higher EBITDA margin.

(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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