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This strong growth calls for a premium valuation, which is also a norm during upcycles. Hence, we value the core business at 19.5x FY23 EPS and, after adding cash and investment in KTM, we arrive at a target price of Rs4,807. With this, we assume coverage with a BUY rating. A slower economic recovery and any extenuating circumstances around the pandemic are the key risks to our assumptions.

Ambuja Cement--Buy



We arrive at a fair value of Rs311/sh (revised from Rs261). At our TP the stock trades at a replacement cost of Rs11.5bn CY22e capacities (SA). Maintain BUY.

Steel Authority of India Limited--Buy

Recommendation by Anand Rathi Share and Stock Brokers

We believe the company to continue to benefit from better realisations in medium term, the expected increase in employee costs should be absorbed by improved realisations and increased share of value added products. Also, the stronger balance sheet due to lower debt augurs well for the company. q We initiate our coverage on SAIL with BUY recommendation and a target price of ?94 per share.

Central Depository Services (India) Ltd. (CDSL)�Buy

Recommendation by Anand Rathi Share and Stock Brokers

Within financial assets, the allocation towards equities has been rising as retail investors have usually been under-invested in equities. CDSL stands to benefit with growth in capital markets. Also, increasing thrust on digital account opening & online initiatives create further optimism. We initiate our coverage on CDSL with BUY rating with a target price of ?760 per share.

Mahindra & Mahindra--Buy

Recommendation by LKP Securities

Maintain BUY rating on attractive valuations; SoTP-based target price increased to ?974 as we expect margins to improve on increase in value of UV and LCV segments on higher volume and margin assumptions and rolling over to FY 23E estimates.

NTPC--Buy

Recommendation by Motilal Oswal Institutional Equities

We expect the situation with respect to receivables to improve, which would help ease investor concerns. We remain positive on the stock with valuations at 0.8x FY22E BV and 6% dividend yield. Maintain Buy with a DCF-based target price of INR141 per share.

Bharat Forge Ltd--Buy

Recommendation by Geojit Financial Services

Amid crisis, the demand visibility looks attractive on a medium basis for BFL, owing to the growth coming from the CV industry and defence sector and thus reiterate our Buy rating.

Max Financial Services--Buy

Recommendation by Motilal Oswal Institutional Equities

We maintain our Buy rating with a revised TP of INR1,000 per share (3.3x FY23E EV), considering 80% stake for MAXF and 20% holding company discount.

Indian Hotels--Buy

Recommendation by Motilal Oswal Institutional Equities

We assign a Buy rating to IH, with an FY23-based Target Price of INR143 (oneyear forward EV/EBITDA multiple of 18x).

Lemon Tree Hotels--Buy

Recommendation by Motilal Oswal Institutional Equities

We assign a Buy rating to LEMONTRE, with an FY23-based Target Price of INR50 (one-year forward EV/EBITDA multiple of 18x).

Disclaimer: Views and recommendations given are those of brokerages and analysts and do not represent those of IANS. Users should check with certified experts before taking any investment decision. IANS has no financial liability whatsoever to any user on account of the use of information provided.