Top Brokerages Share Views on Paytm, Vodafone Idea, and Jana Small Finance Bank Stocks

Leading brokerage firms have shared their latest views on three key stocks: Paytm, Vodafone Idea, and Jana Small Finance Bank. Here’s a breakdown of their recommendations:

Paytm:

• UBS has given Paytm a neutral rating with a target price of Rs 490. They believe the recent government approval for Paytm’s investment in its payment gateway business is a positive step. This approval allows Paytm to reapply for a payment aggregator license from the Reserve Bank of India (RBI), which will let them onboard new online merchants that were previously restricted.
• Jefferies has a hold rating on Paytm with a target price of Rs 420. They noted that Paytm received the Ministry of Finance’s approval to invest in its payment gateway business and will now seek a payment aggregator license from the RBI. If the license is approved, Paytm can onboard new merchants, which has not been possible since November 2022. Jefferies views the reduction in regulatory issues as a positive for Paytm.

Vodafone Idea:

• Citi has a buy rating on Vodafone Idea with a target price of Rs 22. The Supreme Court of India has agreed to hear Vodafone Idea’s petition related to adjusted gross revenue (AGR) on August 30. Citi sees this as a significant development, as a favorable ruling could reduce Vodafone Idea’s debt burden considerably. This could also benefit other companies like Indus Towers and Bharti, although it won’t affect Jio.

Jana Small Finance Bank:

• Investec has started coverage on Jana Small Finance Bank with a buy rating and a target price of Rs 725. Investec is optimistic about the bank’s future, noting that its strategy has helped manage risks and maintain asset quality. They expect Jana to show strong earnings growth from FY24 to FY27, with lower costs and better credit management. They forecast a 21% compound annual growth rate (CAGR) in profit before tax over this period, with an average return on equity (RoE) of 17%. The bank is considered undervalued at its current price.

These recommendations from top brokerage firms reflect their insights and expectations for these stocks in the near future.