Hot stocks: Brokerage view on L&T, Dabur and Mastek

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

Bernstein on L&T: Outperform| Target price: Rs 3,891

Bernstein maintained its outperform rating on L&T with a target price of Rs 3,891. The international hedge is working as of Q2 FY25. It was another quarter of strong execution and stellar working capital position. Order inflow declined given the high base last year and the management retained their guidance- but Bernstein sees it as a tough ask. Core margins are yet to come alive but continued to print above last year. The global brokerage firm still sees the likelihood of a beat here given soft commodity prices.

Goldman Sachs on Dabur: Neutral| Target price: Rs 580

Goldman Sachs maintained a neutral rating on Dabur with a target price of Rs 580A sharp decline in Q2 EBITDA was driven by channel destocking. Even adjusted for the inventory reduction, growth was weak due to a sharp decline in beverages. Weak quarter for India beverages as fruit-based beverages lose share to aerated drinks category. The management expects mid to high single-digit growth in H2, but is contingent on strong winters.

UBS on L&T: Neutral| Target price: Rs 4,000

UBS maintained a neutral rating on UBS with a target price of Rs 4,000 Middle East drove core results beat in Q2FY25 while the domestic continued to lag. Energy and hi-tech segment saw a decline in profitability limiting the core margin improvement for Q2/H1.

L&T could target higher conversion and market share in the domestic orders given the current pipeline.

Macquarie on Mastek: Outperform| Target price: Rs 3,320

Macquarie has maintained an outperform rating on Mastek and hiked the target price to Rs 3,320 from Rs 3,120.

Macquarie stated that it is raising the target price as acquisitions work out well. The recent Q2 results, the best since Q4FY23.

North America revenue was up 17.3% QoQ and 11.1% YoY in US$ terms. EBITDA was up 125bps QoQ and 40bps YoY despite a partial wage hike impact.

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