stocks: These stocks could return 14%-41% as Dalal-Street rally strengthens

Foreign investors are intensifying buying of Indian stocks and sentiment on Dalal Street has seen further improvement. ET has compiled a list of stock recommendations from analysts of the brokerage firm. Stocks can give returns between 14% to 41% depending on the price targets of these brokerages.

Brokerage: Credit Suisse

Target Price: Rs 720

CMP: Rs 593.3

Possible upside: 21.3%

The brokerage has reduced its target price on the stock from Rs 790 to Rs 720 while maintaining outperform rating. The brokerage had cut earnings per share by 4-9% from FY13 to FY15 on concerns of low operating profit margins and slow growth in the generic injectable business. Credit Suisse said the company’s global generic injectable sales guidance would be difficult to meet.

Brokerage: CLSA

Target Price: Rs 850

CMP: Rs 688.6

Potential Upside: 23.4%

CLSA has increased its target price on the stock from Rs 805 to Rs 850 and maintains a buy rating. The brokerage said it is bullish on the property developer due to its focus on Bengaluru’s realty market, where the housing demand outlook remains strong. CLSA said Shobha generated free cash flow for the seventh consecutive quarter in April-June, resulting in its debt levels falling.

Brokerage: Bank of America

Target Price: Rs 945

CMP: Rs 682.1

Potential Up: 38.6%

Bank of America said the stock could be re-rated if the insurance giant continues to drive growth and margins. The brokerage said LIC is trading at a steep 70% discount on price to enterprise value basis as compared to other domestic listed peers. It said LIC is focused on growing its non-par business which should help it balance its product basket and improve overall margins.

Brokerage: Morgan Stanley

Target Price: Rs 3,015

CMP: Rs 2,632.6

Potential Up: 14.6%

Morgan Stanley said Reliance’s annual report for FY22 focused on energy transition and sustainability. Giving an overweight rating on the stock, the brokerage said, “Investors always look closely at the health of the balance sheet, but RIL’s new energy plans also came out in the annual report this year.”

zee entertainment
Brokerage: Ambit Capital

Target Price: Rs 340

CMP: Rs 241.8

Potential Up: 40.5%

While retaining the buy rating, Ambit said, “We expect the company to capitalize on its market leadership by leveraging Sony’s global OTT content expertise and Zeel’s leading pan-India TV presence.” The brokerage said the valuation of Zee based on price to earnings (PE) ratio is ‘undemanding’ at 12 times FY24 estimated earnings. Zee can deliver RoE of 12%.


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