Top Stocks on Brokers’ Radar for April 28
Axis Bank: Morgan Stanley has given Axis Bank an ‘overweight’ rating, meaning they think the stock will perform well in the long run. They have set a target price of Rs 1,300. However, analysts say the bank’s earnings are still low, with limited growth in loans and deposits. Credit costs remain high, which could put some pressure on the stock for the next few quarters until things improve.
SBI Life: Jefferies has given SBI Life a ‘buy’ rating with a target price of Rs 2,000. During the January-March quarter, SBI Life’s growth in new business value surprised analysts, increasing by 10% to Rs 1,700. This growth was helped by better product offerings and term insurance. However, premium growth was slower due to weaker sales of certain products.
SBI Cards: Goldman Sachs has a ‘buy’ rating on SBI Cards with a target price of Rs 1,006. Analysts say the company’s operating profit grew by 4%, which met expectations. They also noted that credit costs have improved after increasing for five consecutive quarters. The analysts expect further improvement in the coming years.
Tech Mahindra: Citigroup has given Tech Mahindra a ‘sell’ rating with a target price of Rs 1,265. Analysts said the company had a slow performance in the January-March quarter, with lower-than-expected revenue and margins. They believe the management is doing well, but expectations are too high for the company.
Rallis India: HSBC has a ‘reduce’ rating on Rallis India with a target price of Rs 210. Analysts said the company didn’t meet expectations in the January-March quarter, and domestic pricing pressures are a concern. While the company’s efforts to improve its business model are commendable, challenges remain.
