Paytm has received a rating upgrade from Emkay Global Financial Services, which has also doubled its target price for the stock. The brokerage has initiated coverage on GMR Power as well.
Meanwhile, Motilal Oswal Financial Services has started coverage on the Indian power sector, assigning ratings to Power Grid Corp., Tata Power Ltd. and NTPC Ltd.
NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Tuesday.
Emkay On Paytm
Upgraded stock to an 'add' rating and raised target price to Rs 750 apiece from Rs 375, implying a potential upside of 13% from the previous close.
Easing regulatory stance should pave the way for approvals from National Payments Corp. of India and the Reserve Bank of India.
To onboard new users and online merchants soon and, thus, drive business turnaround.
Strong cost optimisation measures should put company on an early path to profitability.
Management expects the loan distribution business to gradually re-accelerate, led by merchant loans.
Company broking and insurance distribution business is gaining scale and already turned profitable.
Sold its operationally heavy entertainment business in second quarter.
Should boost cash buffers as well as reduce net loss in fiscal 2025 estimates.
Expect company to again turn operating earnings before interest, taxes, depreciation, and amortisation, ex-Employee Stock Ownership Plan and UPI incentive positive by fourth quarter fiscal 2025 estimates.
Valuation implies 3.6x/3x FY26E/27E Enterprise Value/Operating revenue.
Motilal Oswal On Indian Power Sector
Initiates coverage on the sector.
Expect investment opportunity of Rs 40 lakh crore in the sector over the next decade.
Generation, transmission, smart metering to account for 86%/10%/4% of investment opportunity.
Expect Indian power consumption compound annual growth rate of 7% over next decade.
Expect electric vehicles and data centres to drive 1/3rd of power demand growth by 2035.
Prefer renewable energy generation over thermal.
'Buy' rating on Power Grid Corp. at Rs 425 target, implying a 24% upside.
'Buy' rating on JSW Energy Ltd. at Rs 917 target, implying a 15.8% upside.
'Buy' rating on Tata Power at Rs 530 target, implying a 16.7% upside.
'Neutral' rating on NTPC at Rs 450 target, implying a 5% upside.
'Neutral' rating on Indian Energy Exchange Ltd. at Rs 226 target, implying a 5% downside.
Emkay On GMR Power
Initiates coverage with a 'buy' rating on the stock and a target price of Rs 180 apiece, implying a potential upside of 20% from the previous close.
Bull case target price set at Rs 205, implying an upside of 38%.
Healthy earnings visibility on core generating assets to support deleveraging efforts.
Bosch's 7.5 million smart meter contract offers a potential asset-light business opportunity.
Value core power generating assets at 10 to 12 times and the Engineering, Procurement, and Construction business at 1x.
Key risks include project execution, policy, resource availability and credit.
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