Brokerages upgrade these 3 stocks to ‘buy’, raise target price

The market continues its Diwali bumper run, which took Sensex to a fresh high of 40,676.44. While Nifty is just points away from its record high touched on June 3 on the back inline earnings, the government’s new measures for real estate sector and positive global markets.

Out of the last 10 trading sessions, the Nifty50 has given positive returns in eight.

Foreign institutional Investors (FIIs) bought equities worth Rs 1,879.50 crore while Domestic Institutional Investors (DII) sold equities worth Rs 3,347.70 crore in the month of November 2019 so far.

“Technically, the short term uptrend of the Nifty still remains intact. Further upsides are likely once the immediate resistance of 12,003 is taken out. Crucial supports to watch for resumption of weakness are at 11,861-11,921,” said Deepak Jasani, Head Retail Research, HDFC securities.

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Here are three stocks in which foreign brokerages have upgraded their rating and also increased target price (source – CNBC-TV18):

HDFC | Brokerage: PhillipCapital | Rating: Upgrade to buy from neutral | Target: Raised to Rs 2,410 from Rs 2,300 per share

We may see the company grow its loan book by about 14-15 percent over FY19-21 and strong and stable franchise should help company raise funds at competitive rates, said PhillipCapital.

The research house expects that spreads would remain steady.

The company has registered a 60.5 percent year-on-year (YoY) jump in its standalone Q2 FY20 net profit at Rs 3,961.53 crore on the back of better operating performance. The company reported a profit of Rs 2,467.08 crore in the same quarter in 2018.

The revenue of the company rose 19.9 percent YoY to Rs 13,487.44 crore.

Its tax expense stood at Rs 568.9 crore versus Rs 1,022 crore in the year ago period while dividend income increased to Rs 1,073.8 crore.

The Gross non-performing assets (NPAs) was marginally higher at 1.33 percent while net interest income (NII) rose 16.2 percent YoY to Rs 3,077.7 crore. The net interest margin was unchanged at 3.3 percent QoQ.