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Brokerage Reports: Paytm and BHEL Among 8 Stocks Reviewed - Check Targets and Ratings
- •Nomura has initiated a buy rating on Paytm with a target of 2,250 rupees, expecting revenue growth through payment services and merchant loans.
- •CLSA maintained an underperform rating on BHEL with a target price of 351 rupees, citing increasing competition and potential slowdown in large orders.
- •Nomura recommended a buy on Dhoot Transmission with an 1,800 rupees target, anticipating benefits from rising electric vehicle demand and local manufacturing.
- •Goldman Sachs issued a sell recommendation on Tata Technologies with a target of 560 rupees as second-quarter results missed estimates.
- •Nomura and Jefferies issued buy recommendations on The Leela Palaces, driven by growth in average room rates and domestic travel demand.
Key Questions Answered
CLSA has maintained an underperform rating on BHEL with an increased target price of ₹351, which is about 24.4% lower than its closing price of ₹464 on October 14. Although second-quarter revenue grew by 24% and operating profit margins expanded to 11%, increasing competition, new power equipment suppliers, and a potential slowdown in large orders could affect future growth.
Nomura initiated a buy rating on Paytm with a target price of ₹2,250, projecting a potential upside of 31.4%. The brokerage expects revenue to grow through payment services and loans extended to merchants, while profitability could improve via cost control and the implementation of AI.
Both Nomura and Jefferies issued buy recommendations for The Leela Palaces, with targets set at ₹650 and ₹735 respectively. Growth was strongly supported by a rise in average room rates and domestic travel demand, leading to a 33% increase in revenue, a 36% jump in operating profit, and a 27% growth in net profit during the second quarter.
