Hot Stock Picks: Top Brokerage Firms Share Views on Vodafone Idea, Bharti Airtel, Bajaj Finance, and M&M Finance

Top brokerage firms like Goldman Sachs and Jefferies have shared their latest recommendations for stocks like Vodafone Idea, Bharti Airtel, Bajaj Finance, and M&M Finance. Here’s a summary of their recommendations:

Goldman Sachs on Vodafone Idea: Sell | Target Price: ₹2.5

Goldman Sachs has kept a “Sell” rating on Vodafone Idea and increased its target price to ₹2.5 from ₹2.2. The brokerage firm is concerned about the company’s unclear path to free cash flow (FCF) break-even and regaining market share. They predict a 300 basis points (bps) loss in market share over the next 3-4 years. Even in the best-case scenario, where there are 65% lower adjusted gross revenue (AGR) dues, regular tariff hikes, and no government repayments soon, the estimated value per share is ₹19.

Goldman Sachs on Bharti Airtel: Buy | Target Price: ₹1,700

Goldman Sachs has maintained a “Buy” call on Bharti Airtel and raised the target price to ₹1,700 from ₹900. They believe strong growth, along with a rising FCF/returns profile, supports a higher valuation. The brokerage firm expects Bharti Airtel’s revenue and EBITDA in India to grow at a compound annual growth rate (CAGR) of 16% and 21% respectively from FY24 to FY27. They also anticipate an improved balance sheet with nearly zero net debt by FY28.

Jefferies on Bajaj Finance: Buy | Target Price: ₹8,410

Jefferies has maintained a “Buy” rating on Bajaj Finance, increasing the target price to ₹8,410 from ₹7,780. After meeting with management, they noted an improvement in loan bounce rates, which could lower credit costs starting in Q3. Jefferies expects a moderate slowdown in loan growth from 31% to around 25-26%. They also see credit costs stabilizing and net interest margins (NIMs) holding steady, with earnings likely to improve from Q3.

Jefferies on M&M Finance: Hold | Target Price: ₹315

Jefferies has kept a “Hold” rating on M&M Finance and raised the target price to ₹315 from ₹305. The company sees stable disbursement trends, and better rural demand during the festive season could boost disbursements in the second half of the year. The management also expects a slight increase in NIMs and a gradual rise in fee income. Jefferies predicts that credit costs could drop by 20 bps in FY25, and investors will likely focus on a more sustainable reduction in credit costs due to fewer write-offs.

These are the latest stock recommendations from top brokerage firms for investors to consider!