TRADE NIVESH Morgan Stanley has overweight rating on Kotak Mahindra Bank with a target at Rs 1,900 per share.
Global brokerage house Morgan Stanley remained bullish on Tech Mahindra, Kotak Mahindra Bank and IndusInd Bank as it expects these stocks could return 10-20 percent in next one year.
While having overweight call on largecap IT company Tech Mahindra with a target price of Rs 850 per share, the research house said the company was confident of improvement in deal pipeline for communications business.
Hence, Morgan Stanley expects FY20 revenue growth of the company at 6.7 percent and FY21 at 8-10 percent against 4.2 percent in FY19.
With improving margin, earnings growth could be even better, it said, adding valuation looks cheap at current levels. Tech Mahindra share price was quoting at Rs 780.15, up Rs 7.20, or 0.93 percent on the BSE at 1027 hours IST.
Morgan Stanley also has overweight rating on Kotak Mahindra Bank, the fourth largest lender by market capitalisation, with a target at Rs 1,900 per share as it believes share price will rise relative to the industry over the next 30 days.
After the Finance Minister Nirmala Sitharaman confirmed hiking statutory FPI limit to sectoral foreign investment limit from April 1, 2020, the company is a likely candidate to be included in MSCI Index with 5.7 percent weight, the brokerage said.
On Monday, Morgan Stanley said it expected MSCI India's weight to rise about 70 bps when it would do semi-annual review in May 2020. According to the brokerage, the increase in India weightage will lead to a passive flow of $2.5 billion.
The global research firm also has overweight rating on IndusInd Bank on the back of strong capital and focus on granularising assets/deposits. "We see pre-provision operating profit (PPoP) growth increasing further and return on equity at 17.5 percent in FY21.
It raised target price of the stock to Rs 1,800 from Rs 1,700, though market is concerned with corporate NPLs, which could drive stock in near term.
Kotak Mahindra Bank was quoting at Rs 1,714.65, up Rs 10.30, or 0.60 percent and IndusInd Bank was up 0.6 percent at Rs 1,502.10 at the time of publishing this copy.
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Global brokerage house Morgan Stanley remained bullish on Tech Mahindra, Kotak Mahindra Bank and IndusInd Bank as it expects these stocks could return 10-20 percent in next one year.
While having overweight call on largecap IT company Tech Mahindra with a target price of Rs 850 per share, the research house said the company was confident of improvement in deal pipeline for communications business.
Hence, Morgan Stanley expects FY20 revenue growth of the company at 6.7 percent and FY21 at 8-10 percent against 4.2 percent in FY19.
With improving margin, earnings growth could be even better, it said, adding valuation looks cheap at current levels. Tech Mahindra share price was quoting at Rs 780.15, up Rs 7.20, or 0.93 percent on the BSE at 1027 hours IST.
Morgan Stanley also has overweight rating on Kotak Mahindra Bank, the fourth largest lender by market capitalisation, with a target at Rs 1,900 per share as it believes share price will rise relative to the industry over the next 30 days.
After the Finance Minister Nirmala Sitharaman confirmed hiking statutory FPI limit to sectoral foreign investment limit from April 1, 2020, the company is a likely candidate to be included in MSCI Index with 5.7 percent weight, the brokerage said.
On Monday, Morgan Stanley said it expected MSCI India's weight to rise about 70 bps when it would do semi-annual review in May 2020. According to the brokerage, the increase in India weightage will lead to a passive flow of $2.5 billion.
The global research firm also has overweight rating on IndusInd Bank on the back of strong capital and focus on granularising assets/deposits. "We see pre-provision operating profit (PPoP) growth increasing further and return on equity at 17.5 percent in FY21.
It raised target price of the stock to Rs 1,800 from Rs 1,700, though market is concerned with corporate NPLs, which could drive stock in near term.
Kotak Mahindra Bank was quoting at Rs 1,714.65, up Rs 10.30, or 0.60 percent and IndusInd Bank was up 0.6 percent at Rs 1,502.10 at the time of publishing this copy.
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