Citi, BofA Securities Picking Winners After Government's Spectrum Waiver Move, Here Are Their Top Picks

In a series of industry upgrades and downgrades, several brokerages have expressed their optimism towards key Indian stocks after the government's recent decision to waive off the bank guarantee requirement for spectrum acquired in past auctions.

Citi has "buy" rated Vodafone Idea, increasing its price target to Rs 13 from Rs 7.80 (+67%) following the waiver move that is expected to give the telecom operator a significant boost. BofA Securities, on the other hand, has downgraded Indiamart Intermesh to an "underperform" rating with a slashed target price to Rs 2,010 from Rs 2,170 (-11%), citing sustained high churn and softer collections impacting revenue growth.

Goldman Sachs too is bullish on UltraTech Cement, assigning it a "buy" rating with a target price of Rs 12,460 from its current level. The brokerage expects the cement major to benefit from government incentives aimed at boosting infrastructure development.

Another stock that has caught attention is Cholamadalam Investment & Finance, for which JP Morgan maintains an "overweight" rating with a revised target price of Rs 1,550 from Rs 1,160 (+28%). Meanwhile, Bajaj Broking's top picks include Prestige Estates, Hudco, and Laurus Lab, all of which have seen their target prices increased by between 21% to 39%.

These developments indicate that the recent auction waiver move is likely to benefit some Indian industry players who operate in sectors such as telecoms, cement, and infrastructure development.