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Brokerage Radar: CLSA backs Swiggy with 'Buy', HSBC downgrades TCS, Tech Mahindra

10 Dec , 2024   By : Debdeep Gupta


Brokerage Radar: CLSA backs Swiggy with 'Buy', HSBC downgrades TCS, Tech Mahindra

CLSA On Swiggy

Initiate Buy Call, Target At `708/Sh

Co Has Large And Growing TAM With A Clear Early-mover Advantage

See Execution Improving With Accelerating Growth & Improving Profitability

Expect Indian Quick Commerce To Grow 6x In FY24- 27 & Swiggy To Be One Of Largest Beneficiaries

Co Will Likely Continue To Lag Zomato, But We Believe This Gap Is In The Price


Citi On Divi’s Labs

Buy Call, Target At `6,850/Sh

Biosecure Act Appears Delayed But Thesis Is Intact

Biopharma Cos Will Continue To Look For Diversification & Will Keep Adding additional partners/Suppliers

Any Sharp Correction May Be An Enhanced Buying Opportunity As Pipeline Appears Strong

Co Has Multiple Catalysts Like Contrast Media, GLP-1

Entresto Sales May Not Come Down Against Street Estimates Of A Sharp Decline


Jefferies On Godrej Props

Buy Call, Target At `3,850/Sh

Past 4 Yrs Have Seen Acquired Projects Provide 8x Multiple To Acqn Cost & Sales To Quadruple

Pivot To Owned Land & Recent Equity Raise Serve To Extend The Growth & CF Jump Horizon

In Near-term, Expect Co To Post 35% Pre-sales Growth In FY25 As H2 Launches Build On Strong H1

At 17x PE To FY25 Pre-sales, Stock Can See Multiples Rise Alongside P&L & Operating Cash Flow


Morgan Stanley On Life Insurance

Private Sector Individual APE Growth Of 15% YoY Was Off Base Of -1% YoY

ICICI Pru Life Reported Strong Growth YoY While HDFC Life & SBI Life Were Subdued


Citi On HDFC Life

Buy Call, Target At `820/Sh

Evolution Of Customer Preferences Towards Embedded Protection

Sustained Investment Scaling Up Of Business In Tier-II And III Markets

Robust Focus On Deploying Sales Manpower Across Verticals

Reiterating Mid-High-Double-Digit Medium-Term VNB CAGR


Morgan Stanley On Paytm

Equal-Weight Call, Target At `976/Sh

Sale Of PayPay Stock Acquisition Rights Approved

Sale Net Positive For Co & Would Help Strengthen Its Balance Sheet

Drive Tighter Focus On Its Core Payment And Financial Distribution Businesses


HSBC On IT

Upgrade Infosys And LTIMindtree To Buy, Wipro To Hold

Downgrade TCS To Hold And Tech Mahindra To Reduce

Downgrade Coforge To Hold & Upgrade Mphasis To Buy

Preferred Picks Are Infosys (Buy), LTIMindtree (Buy), HCLTech (Hold) & Mphasis (Buy)

Expect Industry Growth To Pick Up To 6-7% In FY26 From 3- 4% In The Past Two Years

Industry Growth To Be Led By A Recovery In The US Market

Weaker Outlook For Europe, GenAI Uncertainty To Restrict Upside

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