Benchmark equity indices were trading in red on Monday afternoon, amid weak global cues. The Nifty hovered near the 18,430 mark, down 0.33%. Similarly, the Sensex was at 61950 points, down 0.36%. Oil & gas, metal, and media shares witnessed buying demand, while IT, consumer durables and healthcare stocks saw selling pressure.
Meanwhile, foreign brokerage houses have raised the target of these two stocks:
IndusInd Bank
It is a commercial bank that provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. Its shares were trading at ₹ 1205.45 apiece at 02:49 PM on Monday.
Jefferies has a buy call on the shares of IndusInd Bank with a target price of ₹ 1600. This translates to an upside of 32.73% as compared to its current share price.
“We believe IndusInd Bank is attractively priced in the context that it trades at 1.5 times FY24 adjusted PB and we see scope to deliver turnaround in ROA. The bank’s asset quality pressures are behind it as the bank has recognized/ provided for most of the stressed book. We estimate these can lift ROA from 1.2 percent in FY22 to 1.8 percent in FY24 and ROE towards 15 percent by FY24,” Jefferies said.
Honeywell Automation Ltd
Honeywell Automation (formerly, Tata Honeywell Limited) started as a joint venture between Tata and Honeywell, however, Honeywell bought the stake from the Tata Group and renamed the company. It is primarily engaged in the business of automation & Control systems on turnkey basis. The company’s shares were trading at ₹ 43,369.95 apiece at 02:59 PM on Monday.
Nomura has a ‘buy’ rating on the stock and raised the target price to ₹ 50,642, implying an upside of about 16.77% as compared to its share price.
“Travel resumption should lead to increased commissioning activities and service exports, resulting in rising service revenues and helping maintain gross margins at 49-50%” Nomura said.
Written by Simran Bafna
