ril shares: Hot Stocks: Brokerage view on RIL, IOC, PCBL and ICICI Bank



Brokerage firm Morgan Stanley maintained an overweight rating on RIL and an overweight rating on Indian Oil Corporation (IOC). Sharekhan recommended a buy on ICICI Bank and ICICIdirect has a buy rating on PCBL.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Morgan Stanley on RIL: Overweight| Target Rs 3046

Morgan Stanley maintained an overweight rating on Reliance Industries with a target price of Rs 3046.

The brokerage firm believes that the share price will rise in absolute terms over the next 60 days. As global fuel markets tighten up, chemical margins show signs of improvement. Net debt is also showing signs of reduction.

Cheaper global ethane prices should add to the upside as well. Tailwinds of multiple catalysts are coming together.

Morgan Stanley on IOC: Overweight| Target Rs 191

Morgan Stanley maintained an overweight rating on IOC with a target price of Rs 191. The global investment bank believes that the share price will rise in absolute terms over the next 60 days.The recent retail fuel cut was at the lower end of our expectation, removing a key overhang, said the note.Morgan Stanley believes that IOCL remains the main beneficiary as India’s largest refiner. It expects earnings upcycle driven by above mid-cycle integrated margins.

Sharekhan on ICICI Bank: Buy| Target Rs 1300

Sharekhan maintained a buy rating on ICICI Bank with a target price of Rs 1300. Pressure on net interest margins (NIMs) is likely to persist in the near term, but we still see the bank sustaining its RoA at over ~2% in the near to medium term.

Pressure on NIMs is expected to be partly offset by contained opex growth. Deposit growth continues to be in line with loan growth and LDR remains lowest among large private banks thus loan growth outlook continues to remain healthy for the bank.

The asset quality continues to be healthy along with a strong provisioning buffer outside PCR (1.1% of loans) should keep credit cost lower.

“We believe that among large private banks, it is well-positioned to deliver superior growth/return trajectory. The stock trades at 2.3x/1.9x its FY2025E/FY2026E core BV estimates,” said the Sharekhan report.

ICICIdirect on PCBL: Buy| Target Rs 330

ICICIdirect maintained a buy rating on PCBL with a target price of Rs 330. PCBL Ltd (erstwhile Phillips Carbon Black) is the leading manufacturer of carbon black, which is used as a reinforcing material in tyres.

PCBL also derives ~9% of sales volume from specialty carbon black, which fetches high margins and finds application in paints, plastics among others.

It has a healthy margin profile, capital-efficient business model (RoCE>15%). Recently, it acquired speciality chemical company i.e. Aquapharm Chemicals Pvt. Ltd in water treatment and industrial cleaning chemicals space.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)


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