Motilal Oswal Sees Strong Return In Services Stock, Maintains Neutral Rating For Banking Stock

Brokerage firm Motilal Oswal has assigned buy call to Services sector stock, Zomato Ltd with a target price of Rs 86 apiece. If you buy Zomato Ltd at the current market price of Rs 65 apiece, you can get potential 30% return. The analyst has maintained neutral rating for banking stock, Bandhan Bank with a target price of Rs 270 apiece. Check key details below:

1. Motilal Oswal Gives Buy Call To Zomato

The current market price of Zomato is Rs 65.50 apiece. Zomato's 52-week high is Rs 157 apiece and 52-week low is Rs 40 apiece, respectively.

Return: The stock has given a return of 5% in last 3-months, 4% in last 1-month, and again 4% in 1-week. The stock has fallen 56% in last 1-year.

Market Capitalisation: The company has a market capitalisation of Rs 57,082.90 crore.

Valuation: The analyst has assigned buy call to Zomato with a target price of Rs 86 apiece, stoploss at Rs 56 (15%) and a potential return of 30%. According to the brokerage, "Stock is at major support zone of its weekly averages and sustaining well above them which is indicating strength. Momentum is building up in a rising channel which adds support to the stock for up move."

Key Triggers: Zomato with its large strong footprint across 23 countries, is well placed to benefit from the immense potential in the food delivery industry. The business is not losing cash anymore. Adj. EBITDA broke-even in food business. At company level, goal is to break-even in Q4FY23, or by 2QFY24. Blinkit integration post acquisition went well and it has not lost any market share in the last quarter.

2. Motilal Oswal Maintains Neutral Rating For Bandhan Bank

The current market price of Bandhan Bank is Rs 236 apiece with an intraday decline of 0.76%. The stock's 52-week high is quoted at Rs 349 apiece and 52-week low is quoted at Rs 209 apiece, respectively.

Market Capitalisation: The company has a market capitalisation of Rs 38,096.03 crore.

Return: The stock has declined 59% in last 3-years, 14% in last 1-year, and 15% in last 3-months. It has gained 10% in last 1-week.

Valuation: According to Motilal Oswal, "BANDHAN has raised its credit cost guidance for FY23 to 3.0% (+/- 15bp) from 2.5% earlier. We have further cut our FY23/FY24 earnings estimates by 18%/12% (after 18%/11% cut in 2QFY23 results). Consequently, we revise our TP to INR270 (based on 1.9x FY24E BV) as we await more clarity from 3QFY23 results even as we believe that post recent ~30% correction, the downside stands limited. Reiterate Neutral."

 

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.