Stocks To Buy, Sell And Hold Post Quarterly Results By Motilal Oswal

Companies have begun declaring their quarterly results and accordingly brokerages are deciding on a buy, sell or hold calls. Here is what Motilal Oswal has said on select stocks post quarterly numbers.

Buy HDFC Bank stock, with a price target of Rs 1930

According to Motilal Oswal, HDFC Bank reported an in-line quarter with increased traction in Core PPoP and NII growth, even as margins remained stable. Loan growth was driven by sustained momentum in the Retail segment and robust growth in Commercial and Rural banking. Asset quality ratios remained robust, while the restructured book moderated to 42bp of loans. Healthy PCR and a contingent provisioning buffer should support asset quality.
"We estimate HDFC Bank to deliver a ~19% PAT CAGR over FY22-25, with RoA/RoE of 2.0%/17.7% in FY25. We maintain our Buy rating with a target price of Rs 1,930 (premised on 3.0x Sep'24E ABV). We expect the stock to perform gradually as the margin profile revives and the merger related overhang eases (bank aims to complete the merger by 1Q/2QFY24)," the brokerage has said.

Avenue Supermarts (Dmart): Neutral

Motilal Oswal is neutral on the stock of Avenue Supermarts post the quarterly numbers. DMART added four stores in 3QFY23 and 22 stores in 9MFY23, taking the total count to 306. We have cut our full-year store addition estimate from 45 to 40 stores, taking the total store count to 324, implying 18 new stores in 4QFY23. "We are cognizant of the prominence of new-age grocery models, their rich valuations, and weak management commentary on the non-food category, as well as lower revenue per sqft in the last few quarters. Accordingly, we value the company at 50x EV/EBITDA on FY24E basis and maintain our Neutral rating on DMART with a target price of Rs 4,050, given its expensive valuation," the brokerage has said.

Wipro: Neutral post quarterly numbers

Motilal Oswal has a neutral rating on the stock of Wipro as well. "We raise our FY23 and FY25 EPS estimate by 4% but lower our FY24 EPS estimate marginally to factor in weaker growth next year due to a lower exit rate in 4Q. We maintain our Neutral stance as we await 1) further evidence of the execution of Wipro's refreshed strategy, and 2) a successful turnaround from its growth struggles over the last decade before turning more constructive on the stock. Our target price implies 16x FY24E EPS," the brokerage has said.

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