Reliance Industries, Sula Vineyards, Phoenix Mills can deliver up to 40% returns; should you buy?



Story by: Harshita Tyagi
Designed by: Mohsin

Indian stock market is volatile as investors are cautious ahead of the US Fed rate hike decision, which will be announced on March 22, 2023. The market is abuzz with the hawkish stance from the US Fed officials in the March meeting and is expecting a maximum of 25 bps rate hike

Stock market volatile

March 22 Fed decision will be crucial in determining the direction of the market, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "If the Fed decision is a rate hike pause, there will be a strong rally in markets," he said

FOMC meet outcome to direct markets

Analysts advise investors to remain cautious and wait for stability to emerge in the market. Safety is in large caps, they said, adding that long-term investors can nibble at high quality large caps

Bet on quality large caps

Brokerage firm CLSA is bullish on Reliance Industries shares. It has put a target price of Rs 2,970 on RIL stock, implying around 30% upside from March 21 closing price

Reliance: Buy

"We believe a lack of launches and growth areas has kept the stock subdued over the past 18 months. This could change in 2HFY24," CLSA said, adding that despite rising 5G capex, consolidated leverage should remain under control and well below 2x Ebitda. "BUY for 35% upside to our TP," it added

30% rally seen in
Reliance shares

Domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Phoenix Mills shares with a 'buy' rating. The brokerage has put target price for the stock at Rs 1,700 per share

Phoenix Mills: Buy

Analysts at MOFSL over 30% upside in Phoenix Mills share price. "We expect the company to deliver 34% CAGR in EBITDA of rental portfolio over FY23-25. Our SoTP-based TP of Rs 1,700 indicates an upside potential of 31%. We re-initiate coverage on the stock with a BUY rating," MOFSL said in its report

30% upside in Phoenix
Mills stocks

International brokerage CLSA is also bullish on Sula Vineyards stock. Analysts at CLSA see around 40% upside on the stock. It values Sula at 34x FY25 EPS, a 15% discount to the average of other alcohol beverage companies

Sula Vineyards: Buy

CLSA has initiated coverage on Sula Vineyards shares with a 'buy' rating, and the target price has been set at Rs 475, implying an upside of nearly 40%. According to CLSA analysts, the company is well placed to benefit from the consumer shift to low-alcohol beverages. It is expected to see good revenue growth over FY22-25

40% upside in Sula
Vineyards share

The stock mentioned in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position

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