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Hot Stocks: Brokerages on Power Grid, NTPC, BEL and Dabur

, ETMarkets.comLast Updated: Sep 25, 2024, 09:00:00 AM IST

Synopsis

Goldman Sachs has reaffirmed a Buy rating on NTPC, setting a target price of Rs 430. The profits from NTPC Green align with expectations, and Goldman values NTPC at Rs 4,173 billion based on a sum-of-the-parts (SOTP) analysis for a 12-month target, with NTPC Green contributing Rs 784 billion. Additionally, a proposed Rs 100 billion primary issuance would result in a 13% dilution of NTPC's stake.

Brokerages on Power Grid, NTPC, BEL and Dabur

Brokerage firms like Goldman Sachs have a buy rating on Power Grid and NTPC, while Macquarie has an outperform rating on BEL. UBS has downgraded Dabur to neutral from buy.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Goldman Sachs on Power Grid: Buy | Target price: Rs 370

Goldman Sachs has maintained a buy rating on the stock with a target price of Rs 370.

The government has upgraded the transmission capex estimate to $110 billion. An 8%+ CAGR for transformation capacity is estimated for the company, with the integration of GH2 and PSPs also factored in. Goldman expects Power Grid to be the largest beneficiary of the $500 billion+ grid TAM estimate between FY24-50.

Goldman Sachs on NTPC: Buy | Target price: Rs 430

Goldman Sachs has maintained a Buy rating on NTPC with a target price of Rs 430. NTPC Green's profits are in line with estimates. Goldman values NTPC at Rs 4,173 billion in a sum-of-the-parts (SOTP) based 12-month target price, within which they have valued NTPC Green at Rs 784 billion. A Rs 100 billion primary issuance would represent a 13% dilution in NTPC's stake.

Macquarie on BEL: Outperform | Target price: Rs 350

Macquarie has maintained an Outperform rating on BEL with a target price of Rs 350. The company is on track to meet its FY25E guidance, and all eyes are now on H2 order inflow. Year-to-date order inflows are lagging but are not a cause for concern. The backlog is likely to support growth trends, while supply chains remain a point of monitoring. Additionally, 70-80% of BEL's FY25 pipeline orders are single tender orders, reflecting specific R&D efforts undertaken by BEL over the past 7-8 years.

UBS on Dabur: Neutral | Target price: Rs 700

UBS has downgraded Dabur to Neutral from Buy but has raised the target price to Rs 700 from Rs 650.

Key concerns include rich valuations and potential risks to beverage sales growth. Rising competition in cola drinks and coconut oil poses a threat to sales; however, UBS remains optimistic about sales growth over the next five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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