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International brokerage Morgan Stanley included non-banking financial company Bajaj Finance and state-run defence player Hindustan Aeronautics in its Asia Pacific Ex-Japan and Global Emerging Markets focus lists.
As Bajaj Finance’s management transition has been outlined, with falling credit costs and a favourable interest regime, the investment case for Bajaj Finance is clear, noted the brokerage. On March 21, the brokerage hiked its price targets on shares of the Bajaj Group-led NBFC to Rs 10,500, from Rs 9,300 earlier, while maintaining its optimistic ‘buy’ calls.
Rajeev Jain, the managing director of Bajaj Finance, was elevated to the board of Bajaj Finserv in an executive capacity. Morgan Stanley stated that Rajeev Jain’s continuity at Bajaj Finance should improve investor confidence and sentiment, along with ending a long-term uncertainty.
Morgan Stanley added that Bajaj Finance is the brokerage’s preferred choice among large-cap NBFCs, and it believes that the firm will see sustained performance in the future.
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Morgan Stanley is also optimistic about Hindustan Aeronautics, favoring its strong presence in the defense sector and potential for cyclical growth.
With India set to upgrade and expand its aircraft fleet, HAL could see an order pipeline exceeding $60 billion over the next decade. Growth is expected to be driven by engine upgrades, new orders, and exports.
Further, Morgan Stanley also is bullish on HAL’s defence exposure and expects the stock to see a cyclical recovery.
The brokerage has assigned an ‘overweight’ rating to the stock, with a price target of Rs. 5,292. The target price indicates an upside of around 32 percent from the previous session’s closing price.
