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Brokerage Radar: Bernstein initiates coverage on IndusInd Bank, Muthoot Finance with 'Outperform' call

19 Jun , 2024   By : Debdeep Gupta


Brokerage Radar: Bernstein initiates coverage on IndusInd Bank, Muthoot Finance with 'Outperform' call

Check out the latest brokerage calls and analyst comments on the stocks and sectors in action today. Our coverage includes Zomato, Bajaj Finance, IndusInd Bank and more.

UBS On Zomato

Buy Call, Target `250/Sh

Co Confirmed Discussions To Acquire Paytm’s Ticketing Business

Acquisition Of Paytm’s Ticketing Business Fits In Well With Co’s ‘Going-Out’ Offering

Back-of-the-envelope Calculation Suggests Reasonable Valuations


Bernstein On Bajaj Fin

Initiate Market Perform, Target `6,800/Sh

See A Still Healthy Growth Ahead

There Is Room For Consensus Earnings Cuts Given Several Headwinds

Challenges Include A Sector-wide Trend Of Slowdown In Consumption Credit

Challenges Include Already High Scale Of BAF That Limits Outperformance Vs Sector

Challenges Include Increased Competitive Intensity

Expect An Earnings CAGR Of 21% (FY24-26) And Value BAF On PE (24x FY25E EPS)


Bernstein On IndusInd Bank

Initiate Outperform Call, Target `1,800/Sh

See Co As Quasi-NBFC Given Its NBFC-Like Loan Book Composition & Weak Deposit Franchise

Bank Is Well Positioned For A Potential Rate Easing Cycle

Co Has High Exposure To Attractive Segments (Commercial Vehicles, Microfinance)

Between FY24-26, Expect Co’s RoE To Be 15-16%


Bernstein On Muthoot Finance

Initiate Outperform Call, Target `2,000/Sh

See A Long & Shiny Road Ahead For Gold Loans

Unique Segment In India Arising From Indian Households’ Insatiable Love For Gold

Co Is Best Play In The Segment

Expect 19?rnings CAGR (FY24-26) & Value It On PE (15x FY25 EPS)


CLSA On Varun Beverages

Buy Call, Target Raised To `1,977/Sh

Increased Affordability, New Territories And Products To Sustain Growth

Improved Affordability Compared With Tea, Coffee And Fruit Juices

Deeper Distribution With Affordable Price Points For New Products

Acquisitions Keep The Growth Engine Humming

Raise Target Multiple From 48x To 59x


MS On Infrastructure

India's Infrastructure Has Materially Improved In Recent Years

There Is Significant Scope For Further Improvements Through Recent Government Initiatives

Efficient Infrastructure Can Lower Logistical Costs & Improve India's Mfg Competitiveness

Beneficiaries Fall Into Three Buckets: Enablers, Developers (Asset Owners), And Adopters

Key Stocks To Play This Theme Includes L&T, NTPC, Titagarh Rail Systems, & UltraTech Cement


MS On Crompton Cons

Equal-Weight Call, Target `323/Sh

Management Expects The Electrical Consumer Durables Industry To Grow In 7-9% In FY25

Consumer Preferences Are Shifting With Higher Demand For Premium, Energy-Efficient

Consumer Preferences Are Shifting With Higher Demand For Technology Advanced Products

Crompton 2.0 To Continue To Focus On Growth While Maintaining Margin

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