Thanks to sharp corrections, five Sensex constituents namely Tata Motors Ltd, Asian Paints Ltd, IndusInd Bank Ltd, NTPC Ltd and Adani Ports and Special Economic Zone Ltd need 40-70 per cent surge from the prevailing levels to revisit their 52-week highs. This is against the 30-pack benchmark, which needs 11.2 per cent jump to hit its one-year high of 85,978.25 hit on September 27 last year. Concerns over weak demand and rising competition hurt a few counters. Analysts are positive on stocks such as NTPC and IndusInd Bank post the recent fall.
Tata Motors At Monday's closing value of Rs 695.80, Tata Motors requires a nearly 70 per cent rally to revisit its July 2024 high of Rs 1,179.05. The stock has fallen recently, as JLR is expected to see persistent margin pressure ahead. Besides, India business too is seeing moderation in growth. While the management has maintained its guidance for JLR for FY25E, the asking rate of 10.2 per cent EBIT margin for Q4 is tough to achieve, given the current adverse macro environment, MOFSL said.
"Even in India, both CV and PV businesses are seeing a moderation in demand. For lack of any triggers, we reiterate our Neutral rating with a Dec’26 target of Rs 755," MOFSL said on January 30.
Asian Paints Asian Paints Ltd at Rs 2,269.85 needs 50 per cent rally to revisit its September 2024 high of Rs 3,394. Weak urban demand is likely for few more quarters, said Nomura India. It noted that Asian Paints' Q3 results were below estimates, with volumes rising a mere 1.6 per cent YoY. Sales and Ebitda declined sharply by 6 per cent and 20 per cent. It now values Asian Paints at 45 times EPS, 20 per cent below its past 10-year average. The brokerage has a target of Rs 2,300 on the stock.
IndusInd Bank In the case of IndusInd Bank, Elara said the private lender seems to be transitioning through a period of uncertainties, which makes consistency elusive.
"Add to that, uncertainties on softer aspect (biggest risk to our mind) would entail elongated recovery at this juncture. Despite this, the merit of holding it for the medium term looks strong as IIB can still deliver 1.7 per cent RoA/13-14 per cent RoE in the medium term," it said. This brokerage has a target of Rs 1,320 on the stock. IndusInd Bank hit a one-year high of Rs 1,576 in April and is falling since.
Adani Ports In the case of Adani Ports, the Adani group stock needs 40 per cent rise to revisit its 52-week high level. Post Q3 results, Adani Ports maintained its volume guidance of 460-480 mt for FY25 against 332 mt in 9MFY25. Despite the fact, that in H2, APSEZ is likely to benefit from 4-5mt volume of Gopalpur (acquisition done in 2Q), 6mt from Tanzania and 6mt from Vizhinjam, the guidance is a tad optimistic, said InCred Equities. Adani Ports raised its FY25 Ebitda guidance to Rs 18,800-18,900 crore.
"We raise our FY26F Ebitda estimate by 3 per cent and introduce our FY27F estimates. We roll forward our valuation to Mar 2026F (from Mar 2025F earlier) and retain our ADD rating on the stock with a higher target price of Rs 1,500 (Rs 1,329 earlier)," it said.
NTPC NTPC, analysts said, is a play on energy transition as well as energy security. We believe its regulated equity base will increase, led by 25GW addition of thermal capacity. An expanding renewable pipeline and foray into new business verticals of green hydrogen and pumped hydro storage should its drive growth, they said. This stock needs 41 per cent rise over Monday's closing of Rs 310.30 to revisit its one-year high level.