Axis Securities has a ‘buy’ recommendation on REC Ltd with a target price of Rs 530 (+11%). Analysts feel the company has a long growth runway supported by a strong power capex cycle, improving asset quality and steady return ratio profile.
Emkay Global Financial Services upgraded One 97 Communications (PayTM) with a ‘buy’ recommendation and a target price of Rs 1,050 (+22%). Analysts feel a recent NPCI approval would end a regulatory hangover for the company. In addition, there’s strong traction in merchant device subscription revenue, rising share of UPI on credit card with MDR, accelerating merchant loan business with a better take rate, continued cost optimization, and rising non-operational income should put Paytm on the early path to profitability by next fiscal.
InCred Equities has retained its ‘hold’ recommendation on HDFC AMC with a target price of Rs 4,200 (+3.3%). Analysts appreciated the strong scheme-wise delivery provided by the company that in turn resulted in a surge in equity funds’ AUM and an improvement in market share. However, they feel that most positives are already factored in the stock price and there is limited scope for any further upside.
Elara Securities India has initiated coverage of Trent with a ‘buy’ rating and a target price of Rs 8,500 (+33%). Analysts feel that of the company’s two leading divisions__Zudio and Westside__the former would lead the growth on the back of a successful private label strategy, robust traction led by differentiated fashion, and prudent focus on product quality at reasonable price points and organic growth.
Yes Securities has a ‘buy’ recommendation on Angel One with a target price of Rs 3,000 (+20%). Analysts said that the company’s management sees the new regulations for equity derivatives trading to affect its revenue by about 18-20% but the same would be normalised over the next 2-3 quarters. The management also expects a bounce back in revenue going ahead. They also feel some degree of underlying business traction has continued for the company.
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