Global View: Kotak Bank, Bandhan Bank, Zomato and HDFC Life could give 20-60% return

Indian market opened more than half per cent lower on Thursday amid muted global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook

CLSA maintained a buy rating on Kotak Mahindra Bank with a target price of Rs 2200 that translates into an upside of over 24 per cent from Rs 1770 recorded on 23 March.

Indian market opened more than half per cent lower on Thursday amid muted global cues, but there will be stock-specific action in which global brokerage came out with their reports on business development, or earnings outlook.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Kotak Mahindra Bank: Buy| Target Rs 2200

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CLSA maintained a buy rating on Kotak Mahindra Bank with a target price of Rs 2200 that translates into an upside of over 24 per cent from Rs 1770 recorded on 23 March.

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The stock was upgraded in Jul-21 on strong growth outlook. The key rationale remains that the bank can deliver 4-5% higher growth compared to its peers given low cost of funds and strong franchise.

The bank has just 1-1.5% market share in key loan segments. Going forward, liability side will be the key focus area.

Bandhan Bank: Buy| Target Rs 380

Jefferies maintained a buy rating on Bandhan Bank with a target price of Rs 380 that translates into an upside of over 25 per cent from Rs 303 recorded on 23 March.

Interactions with CEO & CFO encouraged us on asset quality. Recoveries from stressed loans can bring down NPLs over the next few quarters.

Growth is improving across MFI & housing loans segments. Bank will build provisions and still improve return on equity (ROE) above 20%, said the note.

HDFC Life: Buy| Target Rs 820

Jefferies maintained a buy rating on HDFC Life with a target price of Rs 820 that translates into an upside of over 50 per cent from Rs 526 recorded on 23 March.

The management indicated expectation of 17-18% growth in premiums. There’s scope to expand margin from 27% over 9MFY22 to 30% over 3-5 years.

Merger with Exide life is on track and will drive synergies from FY24, said the note. Protection sales affected by supply constraints and tighter reinsurance stance.

Zomato: Overweight| Target Rs 130

JPMorgan maintained an overweight rating on Zomato with a target price of Rs 130 that translates into an upside of over 60 per cent from Rs 81 recorded on 23 March.

Zomato is seeing corporate lunch order returning from March. Increasing frequency of orders is likely to be the primary growth driver in the medium-term.

Rising frequency among existing users alone can expand the business by 5x. Quick commerce can leverage food delivery network, the note added.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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