Stocks to Watch: Piramal Enterprises, Tata Motors, Asian Paints, and L&T in Brokerages’ Radar

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

Axis Capital on Piramal Enterprises: Buy| Target Rs 1140
Axis Capital maintained a buy rating on Piramal Enterprises with a target of Rs 1140. The buyback proposal is on the expected lines.

The company has excessive capital and the value unlocking from Shriram Finance has created further cushion on the capital base.

The current capital adequacy ratio (CAR) at 31% is at a comfortable level. A rough calculation suggests that there could be a buyback of ~8% of the existing equity base.

Morgan Stanley on Tata Motors: Overweight| Target Rs 711
Morgan Stanley maintained an overweight rating on Tata Motors with a target price of Rs 711. JLR and India CV business drove earnings beat.

JLR earnings are rebounding from a low base and should drive deleveraging in FY24. India’s EV ramp is likely to remain the key theme in 2024.On margins, the global investment bank sees upside risks.

Morgan Stanley on Asian Paints: Underweight| Target Rs 2702
Morgan Stanley maintained an underweight rating on Asian Paints with a target price of Rs 2702. Good growth is seen across segments.

Strong margins in 1Q, but no change in guidance for F24 which could lead to price cuts. The management is optimistic about the demand outlook.

Jefferies on L&T: Buy| Target Rs 3050
Jefferies maintained a buy rating on L&T with a target of Rs 3050. The buyback quantum shows confidence in future cash flow generation.

The company needs to post growth of just 2% in the next 9 months to meet guidance 24 growth of 12% (upper end of the guidance).

H2 should benefit from margin recovery as the execution of projects won in an inflated commodity price environment picks up.

The valuations point to re-rating in the historical context.

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