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CLSA has recommended buying shares of State Bank of India (SBI), Zomato, and Titan Company following their Q2 results. The advice comes despite SBI’s challenging current and savings account (CASA) and unexpected net interest margin (NIM) moderation. The bank’s target price is set at ₹700, factoring in the high base retail loan growth.
Zomato’s rating has been upgraded from Outperform to Buy with a target price increase from ₹120 to ₹168 (USD1 = INR83.208). This upgrade is attributed to the viability of quick commerce, acceleration of its Grocery Order Value (GOV), an increase in monthly transacting customers, and higher usage frequency. Blinkit, a quick commerce platform, is predicted to turn profitable.
Titan Company also received an upgrade from CLSA, with a target price boost from ₹3540 to ₹3948. The company’s expansion plans into luxury and international markets have increased its addressable market significantly. However, this comes alongside lower year-on-year basis margins.
In parallel, BofA Securities has maintained a Buy recommendation on InterGlobe Aviation with a target price increase from ₹2600 to ₹2700. The adjustment comes after one-off reversals and compensations led to a Q2 profit after tax (PAT) beat. Despite this positive performance, the additional cost burden of higher wet lease costs will require close monitoring moving forward.
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