What global brokerages say on Dalmia Bharat, HDFC merger & financials

JP Morgan has maintained its ‘overweight’ stance on cement company Dalmia Bharat with a target price of Rs 1,680 on the counter. However, it has further cut its consensus earnings for the company.

The brokerage said the earnings outlook remains hazy, though Q2 should be the bottom and if coal prices stay high, pricing power will be limited. “The recovery in the second half will depend on how sharply coal and energy prices fall,” it said.

Another foreign broker Morgan Stanley maintained its ‘overweight’ stance on M&M Finance with a target price of Rs 225 as it believes the share price will rise relative to the country index over 45 days.

According to the brokerage, the Q1FY23 update is strong on both the loan growth and asset quality front and disbursement for June was much stronger than estimates. “Valuations look attractive and overall Q1 results will be a positive surprise for the investors,” it said.

On financials, brokerage CLSA said healthy business momentum in pre-quarterly disclosures and growth momentum has picked up across the board.

Several lenders including and First have released their pre-quarterly disclosures. According to CLSA, loan growth for both banks has been a positive surprise.

“For mid-sized banks, valuations are undemanding and asset quality issues are fading. Key will be how well they are able to navigate through the rate hike cycle,” it said.

Commenting on RBI’s nod to the merger of

twins, the global brokerage firm said it is a major step for the completion of the process.

However, the bank has indicated that no objection is subject to certain conditions. Earlier, both the entities – HDFC and

– had received approval from BSE and National Stock Exchange (NSE).


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