On December 26, 2024, leading brokerages shared their views on key stocks and sectors, showcasing optimism across infrastructure, housing finance, auto, and city gas distribution. With upgrades in the auto sector and positive outlooks for infrastructure and financials, here’s a look at the top recommendations:

Stock-Specific Brokerages Calls

  1. JSW Infrastructure (MOSL)
    • Rating: Maintain Buy
    • Target Price: ₹375
      Motilal Oswal remains bullish on JSW Infra, citing strong volume growth and an ambitious capacity expansion to 400 MMT by 2030. Revenue and EBITDA are projected to grow at a CAGR of 19% and 20%, respectively, over FY24-27.
  2. Home First Finance (MOSL)
    • Rating: Maintain Buy
    • Target Price: ₹1,250
      The brokerage highlights robust demand in the affordable housing segment, stable asset quality, and the company’s transition to a fully professionally managed entity within the next 12-24 months as key positives.
  3. Tata Motors (DAM Capital)
    • Rating: Upgrade to Buy (from Neutral)
    • Target Price: ₹870
      DAM Capital has upgraded Tata Motors on the back of improving profitability and strong product offerings, marking a favorable risk-reward opportunity for investors.
  4. Escorts (DAM Capital)
    • Rating: Upgrade to Buy (from Neutral)
    • Target Price: ₹3,550
      The brokerage expects growth from Escorts’ strong position in agricultural and construction equipment, driven by macroeconomic tailwinds.
  5. Bajaj Auto (DAM Capital)
    • Rating: Upgrade to Buy (from Sell)
    • Target Price: ₹9,750
      Bajaj Auto’s recovery prospects, supported by margin expansion potential and steady volume growth, have led to an upgrade.
  6. IndusInd Bank (DAM Capital)
    • Rating: Maintain Buy
    • Target Price: ₹1,200 (revised down from ₹1,650)
      The bank faces profitability pressures due to high provisioning and slower loan growth, but its long-term fundamentals remain intact.

Sectoral Views

  1. City Gas Distribution (Morgan Stanley)
    Morgan Stanley remains positive on city gas stocks, highlighting Mahanagar Gas (MGL), which implemented another ₹1/kg price hike in December after a ₹2/kg hike in November. Despite price volatility, the sector is expected to sustain strong growth.
  2. Auto Sector (Emkay Global)
    Emkay prefers auto companies with strong bottom-up growth and margin expansion potential, naming TVS Motors and Eicher Motors as top picks. The brokerage also upgraded Tata Motors, Escorts, and Bajaj Auto to Buy ratings.
  3. India Strategy (Morgan Stanley)
    Morgan Stanley forecasts robust growth signals in the coming months, fueled by heightened capital market activity, structural reforms, and global developments. The outlook is optimistic for sectors with high earnings visibility.

Brokerages remain optimistic about India’s growth prospects, with top picks across infrastructure, housing finance, auto, and city gas distribution. The recent upgrades and positive views reflect strong operational metrics and favorable valuations, offering attractive opportunities for investors heading into 2025.

Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.

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