Stocks to buy| Hot Stocks: Brokerage view on Bajaj Finance, Can Fin Homes, Tata Motors and Kotak Bank

Brokerage firm CLSA maintained a buy rating on Bajaj Finance while Morgan Stanley recommended a buy on Can Fin Homes.

Also, CLSA recommended a buy on Tata Motors and Jefferies has a buy rating on Kotak Mahindra Bank.

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

CLSA on Bajaj Finance: Buy| Target Rs 9500
CLSA maintained a buy rating on Bajaj Finance with a target price of Rs 9500. The brokerage said that growth and profitability of Bajaj Finance remain strong, and the asset quality is normalizing.

The spread compression remained modest. Profitability remains strong and the return on equity (ROE) is of 22%+ even post-capital raising, it added.

Morgan Stanley on Can Fin Homes: Buy| Target Rs 1000

Morgan Stanley maintained a buy rating on Can Fin Homes with a target price of Rs 1000. The company reported a PAT beating estimate by 7% led by higher NIM and lower effective tax rate.

The calculated net interest margins (NIM) expanded by 29bps QoQ to 3.9%. Credit costs (annualized) of 88bp include 48bp fraud-related provisions and management overlay.The GNPA was up 14bp YoY and provision cover was stable.

CLSA on Tata Motors: Buy| Target Rs 803
CLSA maintained a buy rating on Tata Motors but raised the target price to Rs 803 from Rs 777 earlier.

The target hike was after adding Rs.26/share in value from the Tata Technologies Ltd. stake sale. New launches include Tata Safari and Harrier.

Strong SUV launch momentum could add to more revenue.

Jefferies on Kotak Mahindra Bank: Buy| Target Rs 2400
Jefferies maintained a buy rating on Kotak Mahindra Bank with a target price of Rs 2400. The stock was below Covid low P/B having weaker CASA/loan growth .

There are valid concerns, but valuations at 2.5x 12mth fwd P/B can’t be ignored.

The stock trades at a 13% premium over HDFC Bank/ICICI Bank; vs 30% premium to HDFC Bank pre-merger. Clarity on succession will help re-rate the stock.

(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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