maruti suzuki shares: Hot Stocks: Brokerages view on SBI, Voltas, Zomato, Maruti and HDFC Bank

CLSA on Maruti Suzuki: Outperform| Target Rs 12,890

CLSA maintained an outperform rating on Maruti Suzuki India but raised the target price to Rs 1,2890 from Rs 1,1314 earlier.

The PV segment is likely to revive in FY26. The share of CNG vehicles is likely to rise. Maruti’s market share is likely to increase.

The stock is inexpensive and is trading below its 10-year average multiples which is a positive sign for the bulls.

CLSA downgraded HDFC Bank to outperform from a buy earlier and slashed the target price to Rs 1,650 from Rs 2,025 earlier.The private sector bank faces twin challenges on deposits – A high ask rate and a tough environment.Improving yields offset by muted CASA accretion to keep NIM recovery gradual. The global investment bank slashed earnings per share (EPS) estimates due to lower loan growth and cut the FY25 loan growth estimate to 10% vs 15% earlier.

Think the net interest margin (NIM) recovery will be more ‘U-shaped’ than ‘V-shaped’. It slashed FY25/26 EPS estimates by 5%.

Morgan Stanley maintained an overweight rating on Zomato with a target price of Rs 180. Media reports suggest that Flipkart is planning to launch its quick commerce offering as early as May 2024 in select locations.

Media reports suggest that Zepto launched new subscription plans to increase the pace of customer acquisition and improve retention.

The global investment bank views these potential developments as increasing the relevance of the quick commerce market.

These developments validate that the quick commerce model is working well, and the projected adjusted EBITDA break-even for Blinkit in Q1FY25.

“Believe this market could remain relatively more competitive than food delivery. It is still in the nascent stage and competitors are well funded in the near term,” said the note.

Morgan Stanley upgraded Voltas to Equal-Weight from underweight earlier and has also raised the target price to Rs 1160 from Rs 737 earlier.

Harsh summer to drive growth; competition remains elevated. IMD expects most parts of India to experience above-normal maximum temperatures this summer.

This will drive stronger AC demand. Margins may not improve as competitive intensity remains elevated.

Bernstein downgraded SBI but raised the target price to Rs 780 from Rs 710 earlier.

Bernstein sees several factors that would drive Public Sector Banks underperformance vs Private Banks.

The era of PSBs’ superior earnings growth is set to end. There is lower liquidity headroom, and weaker deposit growth is likely to continue.

PSB’s aggressive pricing limits earnings growth. The valuation gap has narrowed significantly. Downgrade SBI given the limited upside from here.

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