The budget is to be presented on 1 February 2025. A few days before this, brokerage firm Motilal Oswal has given positive outlook with stocks like IOCL, JSW Energy, Union Bank, Federal Bank and Kaynes Technologies. Some stocks are seeing a chance of tremendous growth, while some have been advised to walk a little carefully. Tata Steel has received neutral ratings, while stocks like JSW Infra and Hyundai Motor have also been given shopping opinions. Come, know in detail.
IOCL (Indian Oil) – Shopping Advice
Current Price: ₹ 123.95 | Target Price: ₹ 145 (+17%)
The results of IOCL’s third quarter (Q3Fy25) were weaker than expected. The main reason for this was a decline in refining margin and an inventory loss of ₹ 5,200 crore. However, the company’s marketing segment performed well. There was also a forex loss of ₹ 2,050 crore in the quarter.
The good news is that LPG prices remain stable and the losses are likely to decrease from the first quarter of FY26. In addition, IOCL’s large refinery expansion projects are expected to be completed by the second half of FY26. Brokerage has advised it to shop.
Tata Steel – Neutral Rating
Current Price: ₹ 131 | Target Price: ₹ 140 (+7%)
Tata Steel’s third quarter performed as expected. The company’s average selling price (ASP) fell 13% to ₹ 61,929 per tonne, but the increase in production made up. Ebitda was ₹ 7,500 crore, which was better than anticipated.
The net profit of Tata Steel was ₹ 4,000 crore, which is 13% lower on an annual basis, but has increased 13% on a quarter basis. Brokerage has given it a neutral rating and advised investors to be vigilant.
Hyundai Motor – Shopping Advice
Current Price: ₹ 1,645 | Target Price: ₹ 1,975 (+20%)
The third quarter results of Hyundai Motor were weaker than expected. The company’s Ebitda was ₹ 1,880 crore and the net profit was ₹ 1,160 crore. Weak product mixed, more discount and operating de-lights were affected.
However, Brokerage believes Hyundai’s strong SUV portfolio and export growth will help it to move forward. In addition, with the introduction of the Pune plant, the company is preparing to launch new models, which may speed up growth.
JSW Energy – Shopping Advice
Current Price: 473.80 | Target Price: ₹ 770 (+62.51%)
JSW Energy Ebitda fell 18% to ₹ 910 crore on an annual basis, which was less than an estimate. However, the company’s power generation capacity increased by 10% and new projects can show good growth further. The management has targeted to achieve 10GW operational capacity by the end of FY25. The process of acquisition of KSK Mahanadi and O2 Power is expected to be completed by the second quarter of FY26.
Union Bank of India – Shopping Advice
Current Price: ₹ 112.74 | Target Price: ₹ 135 (+20%)
The net profit of the third quarter of Union Bank was ₹ 4,600 crore, which is 28% more on an annual basis. Net Interest Income (NII) was ₹ 9,240 crore, while Net Interest Margin (NIM) remained stable at 2.91%. The bank’s gross non-performing asset (GNPA) was 3.85% and pure NPA 0.82%. Brokerage recommends shopping due to strong balance sheets and improvement financial performance.
JSW Infrastructure – Shopping Advice
Current Price: ₹ 280 | Target Price: ₹ 350 (+25%)
JSW Infra completed the 70.37% acquisition of Navkar Corporation in the third quarter. The company’s integrated income rose 26% to ₹ 1,180 crore and Ebitda increased 22% to ₹ 590 crore. The company aims to invest ₹ 9,000 crore to increase logistics infrastructure by FY30. The brokerage firm has advised it to be purchased.
Federal Bank – Shopping Advice
Current Price: ₹ 185.50 | Target Price: ₹ 225 (+21%)
Federal Bank’s third quarter net profit was ₹ 950 crore, which is 7% less than estimated. The bank’s net interest income (NII) remained in accordance with the estimate, while the NIM remained slightly stable at 3.11%. The bank maintained distance from unprotected loans and recorded a decline of 1% in deposits. Brokerage has advised it to shop.
Kaynes Technologies – Shopping Advice
Current Price: ₹ 4,942 | Target Price: ₹ 6,500 (+31.5%)
The third quarter income of Kaynes Technologies rose 30% on an annual basis, mainly due to the strong demand for the industrial and automotive segment. However, income was 16% less than estimated due to delay in smart meter orders. But it is expected to be compensated in the fourth quarter. Brokerage has advised it to shop.