Hot stocks: Brokerages Amara Raja, HDFC Bank & Exide

Brokerage firms Nuvama and Nomura have maintained a 'Buy' rating on Amara Raja and Exide, respectively, while UBS holds a 'Neutral' stance on ABB. Citi remains positive on HDFC Bank, affirming its 'Buy' rating.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Nuvama on Amara Raja: Buy | Target price: Rs 1,580


Nuvama has maintained a 'Buy' rating on Amara Raja while lowering the target price to Rs 1,580, down from Rs 1,980 previously.

The company's Q2FY25 revenue and EBITDA were in line with estimates, and stable growth is expected in its core business of lead-acid batteries. Amara Raja is also increasing its focus on electric vehicles (EVs). The lower multiple assigned to the lithium business reflects rising competitive intensity and a shortfall in expected benefits from the Production-Linked Incentive (PLI) scheme.

UBS on ABB: Neutral | Target price: Rs 9,100


UBS has maintained a 'Neutral' rating on ABB with a target price of Rs 9,100. Q3CY24 results missed consensus estimates for topline and EBITDA by 11% and 5%, respectively, although there was a 110bps beat on EBITDA margins. The revenue miss was driven by muted execution in process automation.

However, there is upside potential in margins due to pricing.

Citi on HDFC Bank: Buy | Target price: Rs 1,990


Citi has maintained a 'Buy' rating on HDFC Bank with a target price of Rs 1,990.

HDB has filed for an IPO to comply with mandatory listing requirements and raise growth capital. HDB is a leading, granular, and diversified NBFC-UL with an AAA credit rating. Post-issue, HDB’s valuation at 3-4x is expected to represent 2.8-4.3% of HDFC Bank's market capitalization.

Nomura on Exide: Buy | Target price: Rs 589


Nomura has maintained a 'Buy' rating on the stock with a target price of Rs 589.

Q2 EBITDA margin came in below expectations, but Nomura continues to forecast a 12% growth in industrial demand for FY25-26. The firm also anticipates a recovery in auto replacement demand, which should drive 8-10% volume growth. Price hikes and an improved product mix are expected to support margins and offset rising commodity costs. On the lithium-ion front, the company is likely to benefit significantly from OEMs' push for local sourcing.

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