Some of the key stocks that would keep investors busy today on the equity market include Muthoot Finance, IndiGo, Vedanta, Zomato, and Paytm. This is an in-depth guide about each such stock, based on the latest recommendations by leading brokerage firms.
Muthoot Finance
Recommendation: BUY
- Target Price: ₹2,100
- Stop Loss: ₹1,880
Expert Opinion: Nooresh Merani has recommended Muthoot Finance as a solid buy. The growth of the financial institution has been ongoing for quite some time now and makes it a good bet for those seeking stability and growth in the finance sector. The stop loss is placed at ₹1,880, thereby safeguarding buyers in case the situation is still unfavorable.
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IndiGo
Recommendation: BUY
- Upgraded By: Jefferies
- New Target Price: ₹5,225 (from ₹4,400)
Key Insights: Jefferies has upgraded IndiGo from “HOLD” to “BUY,” entailing strong confidence in the prospects of the airline. IndiGo has outperformed in the last 12-18 months continuously because of strategic expansions and strong market leadership.
Its potential growth, along with certain supply challenges, provides it with very strong positioning in the long run. Reflecting a bullish outlook about the company’s prospects riding new growth avenues, it pegs a new target price for the company.
Read Also: IndiGo Co-founder Rahul Bhatia Clarifies On Stake Sale
Vedanta
Recommendation: OUTPERFORM
- Target Price: ₹520
- Brokerage Firm: CLSA
Rationale: CLSA has given an “Outperform” call to Vedanta, having taken into view its sound standing in the commodity market and a host of margin expansion programs in the works. After all, the outlook on metal prices has been optimistic, and hence Vedanta has been seen as a good bet with an attractive dividend yield. Thus, it can turn out to be an interesting bet for those eyeing some exposure to the commodity cycle.
Also Read: Vedanta shares: Risk-reward attractive, stock price target Rs 520, says CLSA
Zomato
Recommendation: BUY
- Target Price: ₹335 (from ₹275)
- Brokerage Firm: Jefferies
Growth Prospects: Zomato continues to remain positive for Jefferies, which has retained a “BUY” rating and increased the target price to ₹335. According to the brokerage house, this is based on their liking for the low capital intensity of Zomato, along with a high growth opportunity in food delivery.
Because it has an extremely promising return ratio in the steady state, Zomato is most likely going to exploit the market reach in the best possible manner. Another growth avenue has been opened up with the company’s recent acquisition of the entertainment ticketing business of Paytm.
Also Read: Zomato to acquire Paytm’s entertainment ticketing business for Rs 2,048 crore
Paytm
Recommendation: SELL
- Target Price: ₹440 (from ₹410)
- Brokerage Firm: Citi
Outlook: Citi has kept the rating on Paytm at “Sell”, and mildly raised the target price to ₹440. This comes after media reports said that Paytm has sold its entertainment ticketing business to Zomato for ₹2,048 crore.
Read the detail news now: Zomato to acquire Paytm’s entertainment ticketing business for Rs 2,048 crore
The sale is viewed as positive since it will allow the latter to focus more on core financial services. However, Citi still remained quite cautious regarding the business model of Paytm and its long-term profitability.
Also Read: Paytm Shares Jump 10% Today; How Strong is This Upside?
People May Ask
Why is Zomato acquiring Paytm’s entertainment business?
Zomato is buying the entertainment business of Paytm to expand into lifestyle and entertainment, building a much broader portfolio than just delivering food.
What is the target price for IndiGo shares, as per Jefferies?
Jefferies has cut its target price on IndiGo to ₹5,225 from ₹4,400 following strong growth prospects for the airline company.
Is Muthoot Finance good investment at this moment?
Yes, experts like Nooresh Merani recommend Muthoot Finance as “BUY” with a target price of ₹2,100 since there is a very stable growth in this finance sector company.
What are the risks of investing in Paytm once it sells off its ticketing business?
While selling the entertainment business of Paytm is a step in the right direction, there are enough challenges within financial services; Citi maintained a “Sell” rating despite increasing the target price by a marginal 5%.
How will Vedanta benefit from the commodity cycle?
With its leverage to ongoing margin expansion projects and an attractive dividend yield, Vedanta looks well-placed to ride the commodity cycle, CLSA said.
(Disclaimer: This information is provided for general knowledge only and should not be taken as financial advice.)
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