CLSA has upgraded DLF to ‘high conviction outperform call’ with a target price of Rs 975 (+28%). Analysts feel the stock offers a compelling valuation with a strong outlook on growth. The real estate major’s pre-sales continued to grow and they expect its growth momentum to continue. They see adequate new launches over the next 8-9 quarters. Along with DLF’s healthy balance sheet, its strong rentals and healthy cash flow offer a downside cushion.
Bernstein has maintained its ‘outperform’ recommendation on Swiggy but with a reduced target price of Rs 575 (+48%) from Rs 635 earlier. Calling it a game of two halves__foods delivery excites while quick commerce business in the waiting, analysts said that the growth in its food delivery business was ahead of Zomato, gaining further market share. They pointed out that quick commerce was impacted by the hyper competitive environment.
Morgan Stanley has an ‘overweight’ rating on Zomato with a target price of Rs 340 (+48%). Analysts believe a hyper-competitive environment could continue in near term for the quick commerce business. This could also lead to much higher cash burn for competition vs Zomato.
Macquarie has an ‘underperform’ rating on InfoEdge with a target price of Rs 4,150 (-48%). Analysts said there were signs of recovery in the recruitment billings while the company’s PAT was impacted by higher provision for investments. Billings for 99 Acres, Jeevan Sathi and Shiksha showed uptick.
HSBC maintained its ‘hold’ call on Container Corp of India (Concor) with a target price of Rs 780 (+7%). Analysts said Concor’s Oct-Dec quarterly numbers were weak. However, the company’s management remained upbeat about improvement in growth prospects in both domestic and export markets. They retained their ‘hold’ rating as the earnings downgrade cycle continued.
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