SBI, ITC, Adani Ent: These 11 bluest of blue chips hit all-time high since October; which stock to buy now?

Adani Enterprises, Britannia Industries, State Bank Of India, Bharti Airtel, Cipla, Eicher Motors, Mahindra & Mahindra, Titan Company, Axis Bank, ICICI Bank and Nestle India are among the 11 Nifty companies which have scaled their all-time high amid the ongoing result season. Some of the companies impressed D-Street with their better-than-expected financial results and market watchers are bullish on a couple of them.

SBI, Axis Bank and ICICI Bank

Starting with the country’s top lenders, State Bank of India, which hit an all-time high of Rs 622.70 on November 7, 2022, reported 72.93 per cent year-on-year (YoY) growth in standalone net profit at Rs 13,264.52 crore in Q2FY23. On the other hand, ICICI Bank and Axis Bank reported 70.10 per cent and 37.14 per cent YoY growth, respectively, in their bottom-line figures for the latest quarter ended September 30. Shares of ICICI Bank and Axis Bank scaled their lifetime highs of Rs 943.25 and Rs 919.95, respectively, last month.

Nirmal Bank Securities has a ‘Buy’ rating on State Bank of India with a target price of Rs 718. “Asset quality trends are expected to remain positive. The bank is currently carrying 75 per cent PCR (provision coverage ratio), along with 105 basis points coverage on standard loans. The current coverage ratios indicate a healthy provisioning buffer. The bank registered RoA and RoE at almost decade high of 0.8 per cent and 16.1 per cent, respectively,” the brokerage said.

Similarly, Edelweiss Wealth Research is bullish on ICICI Bank with a target price of Rs 1135 and Prabhudas Lilladher set a target price of Rs 1,080 for Axis Bank.

Adani Enterprises, Nestle, Titan, others

On the other hand, Adani Enterprises posted 261 per cent YoY growth in net profit on a 189 per cent rise in gross sales. Other major Nifty companies including Bharti Airtel, Titan Company, Cipla and Nestle also posted 87 per cent, 30 per cent, 12 per cent and 8 per cent, respectively, growth in net profit for the quarter ended September 30, 2022. Shares of Adani Enterprises and Britannia scaled their lifetime high of Rs 4,013.70 and Rs 4,190, respectively, on November 7. 

Likewise, Bharti Airtel (Rs 841.45), Cipla (Rs 1185.25), Eicher Motors (Rs 3889.65) and Mahindra & Mahindra (Rs 1366.55) hit their respective highs on November 1. On the other hand, Titan (Rs 2,791) and Nestle (Rs 21,050) hit their all-time high levels in October.

Brokerage Axis Securities is positive on Bharti Airtel with a target price of Rs 960. “We maintain our ‘Buy’ rating on the stock. Given the company's superior margins, stronger subscriber growth and higher 4G conversions,” the brokerage said in a report.

While sharing its view on Nestle India, brokerage KR Choksey added that the FMCG major has sustained its double-digit growth trajectory despite a difficult macroeconomic scenario. “Nestle has seen broad-based growth across segments, both in urban and rural India. The company’s rural strategy is yielding results with a strong uptick seen in rural sales. At the same time, Nestle is strengthening its premiumisation play,” the brokerage said. It has set a target price of Rs 21,805 for Nestle. 

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