Dabur India Ltd. and Paytm operator One97 Communications Ltd. have featured in BofA Securities Inc.’s list of the top 10 short-term recommendations in the Asia Pacific.
These companies have the most significant market and business-related catalysts in the upcoming quarter, according to the brokerage. The list had eight ‘buy-rated’ stocks and two ‘underperform’, according to BofA Fundamental Research analysts.
The list also names PT Bank Mandiri (Persero) Tbk, Eclat Superior, Li-Ning Co., Samsung Electronics Co., Tokyu Fudosan Holdings Corp. and Yankuang Energy Group. Commonwealth Bank of Australia and LONGi were in the ‘underperform’ category.
BofA Securities has given Dabur a ‘buy’ rating with a target price of Rs 566.25. Though the company’s third-quarter print is slightly lower than market expectations, it is expected to be better than its other peers, the brokerage said.
The risk-reward for the company continues to be favourable, and BofA expects the company to be the beneficiary of gradual rural pickup.
One97 Communication also has a ‘buy’ rating from BofA Securities, with a target price of Rs 668.70.
Paytm said that the shift from BNPL will improve the take rate to 3.8–4%, which will help growth of 27% despite lower volumes, according to the brokerage. The payments platform has room to surprise, as it has multiple levers like cost control and the uptake of embedded insurance that will help 6–11% adjusted Ebitda margins in FY25, BofA Securities said.