Wednesday's top brokerage calls: BEL, ONGC, real estate and more

SUMMARY

CLSA is upbeat about the prospects of Bharat Electronics while Jefferies' confidence in the housing cycle is rising with the pick-up in volume and pricing. Here are the top brokerage calls for the day:

By CNBCTV18.comSept 29, 2021 9:05:35 AM IST (Updated)

CLSA on Bharat Electronics | The brokerage has raised its FY23-24 earnings per share estimates by 2-6 percent as the company guided that it would sustain mid-teen growth for 3-4 years. While the company has an impressive $7.5 billion four-year backlog, its expansion into the civilian segment, entry into medical equipment and likely entry into electric vehicle batteries are key catalysts, CLSA added.

Jefferies on Real Estate | The brokerage believes property developers offer the best risk-reward ratio and still prefers developers looking at the early stage of a potential 4-5 year upcyle. Conviction on the housing cycle is now rising with the pick-up in volume and pricing, Jefferies said.

Jefferies on Metals | Production cuts and easing policy measures are key to support market prices, according to the brokerage. Jefferies has retained its 'buy' recommendation on both Hindalco Industries and Tata Steel but flipped its preference order to Hindalco over Tata Steel.

CLSA on Oil and Gas | The brokerage expects the domestic gas price to potentially rise 300 percent in a year. Oil and Natural Gas Corporation remains the top sector buy even after factoring in brent crude oil at only about $45 per barrel, CLSA added.