The brokerage house Motilal Oswal picked two stocks on February 24. The first is Federal Bank and the other is CIE Automotive India. The brokerage house is betting on the Federal Bank’s new leadership while they are counting on domestic business for CIE Automotive India. Read more to know other reasons behind the Buy call.
Federal Bank
The brokerage firm, Motilal Oswal, gave a Buy rating to the stock of Federal Bank, with a target price of Rs 225. The bank’s management guided for a 1.5x nominal growth and stable credit costs of 0.4-0.5%. The brokerage expects it to contribute to the management’s vision of delivering superior RoA over the coming years. “We currently estimate FB to deliver FY27E RoA/RoE of 1.3%/14.6% and remain optimistic about the execution capabilities of the bank under the new leadership.” Further, it thinks that the bank is placed well among mid-sized private lenders to give a healthy earnings trajectory. This will be helped by steady business increases and gradual improvement in margins and operating leverage.
ALSO READRailways stocks like RVNL, RailTel in focus because…
The share price of Federal Bank rose 2% to an intra-day high of Rs 183.40. It has risen 0.8% in the last five trading days. The stock has fallen 1.3% in the last one month and almost 9% in the previous six months. Federal Bank’s share price has risen 20% in the past one year.
CIE Automotive India
Motilal Oswal is betting on CIE Automotive India’s domestic business growth, which it thinks will be the primary engine driving its growth in CY26. However, the weak outlook for the EU business and Metalcastello is likely to weigh on the overall performance in the near term. “Some of the financial attributes unique to the global ancillary player include: being net debt-free, having strict capex/inorganic expansion guidelines, generating positive free cash flow, and tracking an improving return trajectory,” Motilal Oswal said. It cut the earnings per share estimates by 4% for CY25 and 11% for CY26. It has a ‘Buy’ call on the stock with a target price of Rs 500.
ALSO READCLSA says these 2 stocks are potential multibagger stocks- Find out why
The share price of CIE Automotive India has fallen 0.8% in the last five trading days. The stock has wiped out 6% in the last one month and almost 8% in the previous six months.
» Read More
