Tata Motors, BPCL, ONGC, Adani Ports: 7 Nifty stocks gained 20-40% in 2024 so far. What's next?

Seven Nifty stocks namely Bharat Petroleum Corporation Ltd (ONGC), Oil & Natural Gas Corporation Ltd (ONGC), Adani Ports and Special Economic Zone Ltd (Adani Ports), Bajaj Auto Ltd, Sun Pharmaceutical Industries Ltd, Power Grid Corporation of India Ltd and Tata Motors Ltd have delivered roughly 20-40 per cent returns in 2024 so far. Analysts see further upside on a couple of these counters.

In the case of BPCL, the scrip has surged 39 per cent in 2024 so far. It traded at Rs 625.60 today against Rs 450.65 at the end of 2023. If one goes by Emkay Global, a further re-rating on the OMC counter is likely, fueled by to post-election optimism and resumption of steps like frequent revision in retail prices and disinvestment agenda. Among OMCs, Emkay prefers BPCL, followed by HPCL and IOC.

ONGC shares climbed 30.40 per cent to Rs 267.40 level from Rs 205.05 level but, despite the recent re-rating, Motilal Oswal suggested another 15-20 per cent of ‘value upside’ left on the stock. "Beyond this, we believe growth prospects become paramount for a sustained re-rating," it said.

In the case of Adani Ports, analysts have target prices in the range of Rs 1,280-1,470 on the counter. The scrip last traded at Rs 1,332.35 level, up 30.27 per cent. Adani Ports is the largest private player in the country, with a 27 per cent market share that has grown from 10 per cent in FY2014. Kotak, which met with the Adani Ports management, said the Adani group firm expects to further grow its ports market share and sees a minimal impact from the Red Sea issue on cargo.

Bajaj Auto and Sun Pharma shares are up 24 per cent each year-to-date. Power Grid and Tata Motors Ltd have gained 20-21 per cent during this period.

In the case of Tata Motors, Julius Baer said it has downgraded the stock to Hold and would look for better entry opportunities post the recent sharp run up. It suggested a target of Rs 975 on the stock. BNP Paribas suggested a target of Rs 1,035 on this Tata group stock.

On Sun Pharma, KRChoksey Research in its February picks note said: "We expect revenue and net income to grow at 10.6 per cent and 15.3 per cent CAGR, respectively, over FY23-FY26E. The stock is currently trading at 38.9 times/ 32.1 times/26.6 times of our estimated FY24/FY25/FY26 estimated EPS. We assign a PE multiple of 29 times on FY26E EPS of Rs 56.10 to arrive at a Target Price of Rs 1,627 and maintain the recommendation of BUY."

Post Power Grid's Q3 results, Sharekhan maintained Buy on the stock with a revised target of Rs 320. "Valuation of 2.2 times FY2026 P/BV seems reasonable, considering expectation of a pick-up in earnings growth supported by capex revival, healthy RoE of 18-19 per cent, and a dividend yield of 4 per cent," it said.

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