Stock Recommendations from Major Brokerage Firms for May 19
As the financial landscape continues to evolve, several prominent brokerage firms have provided their analyses and stock recommendations for investors. Notable names in the world of finance, including CLSA, Jefferies, Citigroup, and Goldman Sachs, have released updated ratings and target prices for various companies. Here’s a closer look at these recommendations.
CLSA Downgrades IndusInd Bank
CLSA has downgraded its rating on IndusInd Bank from ‘buy’ to ‘hold’, significantly adjusting the target price to ₹780. The decision stems from findings in a recent audit report which revealed that ₹674 crore had been inaccurately recorded as interest income during the first nine months of the fiscal year 2025. This discrepancy will necessitate a reversal in the income statements for the January-March quarter of 2025. Additionally, the report indicated an inflation of ‘other assets’ and ‘other liabilities’ by ₹600 crore.
Analysts noted that these adjustments would affect the bank’s core net interest margin (NIM), which was determined to be 17 basis points lower than previously reported. Reflecting these changes, CLSA has reduced its net profit estimates for IndusInd Bank by 22% for FY25 and by 13%-17% for FY26-27, primarily due to NIM compression and diminished growth prospects.
Jefferies Continues Positive Outlook on LIC Housing Finance
In contrast to CLSA’s downgrade, Jefferies maintains a ‘buy’ rating on LIC Housing Finance, setting a target price of ₹700. The brokerage firm highlighted that the mortgage lender’s net profit for the January-March quarter aligned with forecasts, buoyed by an increase in net interest income (NII) and other income, despite an uptick in operating expenses. The firm noted a 7.3% annualized growth in assets under management and a 5% growth in disbursements, with the NIM increasing by 16 basis points quarter-over-quarter owing to reduced funding costs.
Citigroup Recommends PB Fintech
Citigroup has also expressed a favorable view on PB Fintech, issuing a ‘buy’ recommendation with a target price of ₹2,150. Analysts reported that the company’s net profit for the January-March quarter surpassed market expectations. Contributing factors included minimal tax liabilities, a marked decrease in employee stock ownership plan (ESOP) expenses, improved profit margins, and robust back book growth. Despite a moderation in savings rates, PB Fintech achieved a commendable 22% annualized growth in core fresh business.
Goldman Sachs Supports Neuland Laboratories
Goldman Sachs has issued a ‘buy’ rating for Neuland Laboratories, with an ambitious target price of ₹14,775. Analysts project a potential revenue growth of over 30% year-over-year for FY26, driven by the commercialization of new units and the launch of niche molecules in specialty active pharmaceutical ingredients (APIs).
Nomura Neutral on Apollo Tyres
On a more cautious note, Nomura has adopted a neutral stance on Apollo Tyres, assigning a target price of ₹490. Analysts observed that the company’s performance in the January-March quarter did not meet expectations, attributing this to slower growth recovery and declining demand in commercial vehicles and exports. While they acknowledged that commodity price reductions have already been factored into the forecasts, the potential risks to the company’s growth trajectory remain concerning.
Final Thoughts
The stock recommendations from these brokerage firms highlight the critical and dynamic nature of the financial markets. Investors are encouraged to conduct thorough research and consider these professional insights alongside their own investment strategies. As always, consulting with a qualified financial advisor is advisable before making any significant investment decisions.
Stay updated with ongoing market trends and financial news to make informed choices in your investment journey.
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