Stocks on brokerages’ radar for December 13

Foreign brokerage house Macquarie has an ‘outperform’ call on L&T with a target price of Rs 4,210 (+9%). Analysts feel L&T’s West Asia E&C prospects continue to look good and central govt capex is expected to pick up soon.

Antique Stock Broking has a ‘sell’ call on Rallis India with a target price of Rs 310 (-3%). Analysts at Antique feel that although the company is planning to fill portfolio gaps, improve on-ground presence and strengthen its marketing efforts, all these are already priced in.

Axis Capital has initiated its coverage on the Indian hospitality sector with ‘buy’ calls on Indian Hotels, Chalet Hotels and Juniper Hotels, and an ‘add’ recommendation on Lemon Tree Hotels. Analysts at Axis Capital believe that the current upcycle in the Indian hotel industry can last longer, as the supply addition forecast for FY24-27 is much lower than demand. For Indian Hotels its target price is Rs 976, (+16%), for Chalet Hotels (TP: Rs 1,191; +29%), for Juniper Hotels (TP: Rs 442; +22%) and for Lemon Tree Hotels (TP: Rs 153, +7%).

IIFL Securities has a ‘buy’ rating on Star Health & Allied Insurance with a target price of Rs 700 (+53%). The insurer is planning to hike prices soon by 65-70% in its retail portfolio and 10-12% hike each year. Analysts at IIFL Sec believe sequential improvement in loss ratios is key for the stock’s re-rating.

Recently analysts and economists at Emkay Global met Asia-based foreign investors investing in India. The key discussion points: Investors seemed perturbed by sub-par growth trends and limited policy support. Most questioned whether the elusive private capex cycle could upturn if government capex revives, and whether urban consumption weakness is here to stay.

Some were worried if India could justify its stretched valuations amid losing growth dividend vs other emerging markets. There was uneasiness around RBI’s forex management, which some fear could lead to bigger financial stability-risk later. Amid the limited window to cut rates, most were concerned that monetary policy may not be a big growth lever ahead. Deteriorating quality of the general government fiscal profile led by states’ freebies was extensively discussed as well.

Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerages and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.

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