Dabur, Paytm Among BofA Securities' Q3 Asia Picks

Dabur India Ltd. and Paytm operator One97 Communications Ltd. have featured in BofA Securities Inc.'s list of the top 10 short-term recommendations in the Asia Pacific.

These companies have the most significant market and business-related catalysts in the upcoming quarter, according to the brokerage. The list had eight 'buy-rated' stocks and two 'underperform', according to BofA Fundamental Research analysts.

The list also names PT Bank Mandiri (Persero) Tbk, Eclat Superior, Li-Ning Co., Samsung Electronics Co., Tokyu Fudosan Holdings Corp. and Yankuang Energy Group. Commonwealth Bank of Australia and LONGi were in the 'underperform' category.

BofA Securities has given Dabur a 'buy' rating with a target price of Rs 566.25. Though the company's third-quarter print is slightly lower than market expectations, it is expected to be better than its other peers, the brokerage said.

The risk-reward for the company continues to be favourable, and BofA expects the company to be the beneficiary of gradual rural pickup.

One97 Communication also has a 'buy' rating from BofA Securities, with a target price of Rs 668.70.

Paytm said that the shift from BNPL will improve the take rate to 3.8–4%, which will help growth of 27% despite lower volumes, according to the brokerage. The payments platform has room to surprise, as it has multiple levers like cost control and the uptake of embedded insurance that will help 6–11% adjusted Ebitda margins in FY25, BofA Securities said.

Dabur shares gained 0.95%, the most since Sept. 18, before paring gains to trade 0.22% higher at 10:41 a.m. compared to a 0.34% advance in the NSE Nifty 50.

The stock has fallen 0.92% in the last 12 months. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 66.05.

Of the 46 analysts tracking the company, 30 maintain a 'buy' rating, 14 recommend a 'hold', and two suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies an upside of 0.1%.

Shares of Paytm advanced 2.12%, the most since Dec. 4, before paring gains to trade 1.50% higher at 10:49 a.m. This compares to a 0.16% advance in the NSE Nifty 50.

The stock has risen 25.34% in the last 12 months. Total traded volume so far in the day stood at 0.5 times its 30-day average. The relative strength index was at 45.29.

Of the 15 analysts tracking the company, 10 maintain a 'buy' rating and five recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 26%.