Global View: L&T, Kotak Mahindra Bank and IndusInd Bank could give 14-50% returns in next 12 months

Indian markets are likely to trade higher on Monday, tracking 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.

JPMorgan maintained an overweight rating on L&T post-December quarter results but slashed its target price to Rs 2,160 from Rs 2,300 earlier. Source: Reuters

Indian markets are likely to trade higher on Monday, tracking 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:

L&T: Overweight| Target Rs 2160

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JPMorgan maintained an overweight rating on L&T post-December quarter results but slashed its target price to Rs 2,160 from Rs 2,300 earlier, which still translates into an upside of about 14 per cent from Rs 1,898 recorded on January 28.

The consolidated net profit after tax for the quarter ended December 31, 2021 stood at Rs 2,055 crore, a decline of 17 per cent over the corresponding quarter of the previous year, which had an instance of a sale of commercial property in the realty business and gained on divestment from discontinued operations of the electrical & automation business.

Prospects, as well as execution outlook, look solid despite the 3Q miss. The company is showing signs of growth pick-up, but muted order flow could weigh on the stock in the near term.

The global investment bank remains positive on the growth outlook, free cash potential, and strategic initiatives.

Kotak Mahindra Bank: Buy| Target Rs 2300

CLSA upgraded Kotak Mahindra Bank to buy post Q3 results with a target price of Rs 2,300, which translates into an upside of over 21 per cent from Rs 1,898 recorded on 28th January.

The 3Q performance remains strong, with loans up 8 per cent on a QoQ basis reinforcing the view that the bank can grow faster than peers.

The management now demonstrates a willingness to grow. The asset quality is impeccable during the pandemic which is a positive sign.

IndusInd Bank: Buy| Target Rs 1405

Goldman Sachs maintained a buy rating on IndusInd Bank post-December quarter results with a target price of Rs 1,405, which translates into an upside of over 50 per cent from Rs 903 recorded on January 28.

The balance sheet further strengthened with MFI issues addressed. The asset quality has improved sequentially, which is a positive sign.

IndusInd Bank on Saturday reported a 50 per cent jump in its consolidated net profit at Rs 1,241.55 crore in the quarter ended December 2021.

(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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