Domestic benchmarks settled lower in previous trade, extending their losing run for the third straight session. the 30-share BSE Sensex pack fell 232 points or 0.35% to close at 65,397, while the broader NSE Nifty index moved 82 points or 0.42% down to end the session at 19,543. India VIX, fear index, fell 0.55% to 10.82-level.
For October 23 (Monday), share market analysts from a few brokerages have assigned 'Buy' calls on Hindustan Unilever, Adani Ports, Titagarh Rail and Persistent Systems. Check share price targets, analysis, investment rationale and other crucial details about these long-term bets.
LTP: Rs 2,495
Analysts at Religare Broking have given a 'Buy' call on Hindustan Unilever shares with a target price of Rs 3,068. The stock has slipped 2.48% in 2023 so far.
HUL's second-quarter (Q2 FY24) numbers came largely in-line and revenue grew in single-digit with strong improvement on margins, Religare said. Going ahead, the brokerage expects rural areas to pick up pace and volumes to improve and gross margin to sustain at around levels of 23-24%.
LTP: Rs 793.05
Nuvama Institutional Equities has selected Adani Ports & SEZ in its stock recommendations. Analysts from the domestic brokerage have given a 'Buy' call on the counter with a one-year target price of Rs 958 per share. The stock has fallen 3.57% on a year-to-date (YTD) basis.
The Vizhinjam port adds more credence to Adani Ports' guidance of achieving a volume of around 500MMT by FY25, Nuvama said. "More importantly, capacity creation in the Mundra port and multifold expansion in warehousing capacity augur strong volume growth over FY23–25E. The company continues to diversify and expand across the logistics value chain. Its aggressive expansion in logistics is quite synergistic to the ports business," it mentioned. (The Vizhinjam port is a Rs 7,600 crore infrastructure project being implemented on a public-private partnership (PPP) model with funding from the Centre and APSEZ.)
LTP: Rs 843.40
Analysts at Nuvama Institutional Equities have also picked Titagarh Rail Systems in their long-term bets. The brokerage has given a 'Buy' rating on the counter with a target price of Rs 949. The multibagger scrip has zoomed 271.46% in 2023 so far.
The company reported a 54% year-on-year (YoY) jump in Q2 FY24 revenue to Rs 9,400 crore. "EBITDA margins surged 320 bps YoY to 12.3%, aided by operating leverage and higher contribution from bettermargin private sector wagon orders. The company ended the quarter with an order book of Rs 28,200 crore. Execution of the wagon order from the Indian Railways is progressing well; the company achieved highest-ever dispatch of 759 wagons in September 2023," the brokerage stated.
LTP | Rs 5,906.50
Nuvama's another long-term stock suggestion included Persistent Systems. The brokerage has given a 'Buy' rating for a target of Rs 6,500. The scrip has surged 46.91% in 2023 so far.
Persistent's Q2 FY24 results are strong-revenue grew 3.1% QoQ. Profit after tax (PAT) came at Rs 2,600 crore. "Strong contract value of $479.3 million was up 30% on a YoY basis. Management continues to be confident of delivering industry-leading growth in FY24 and margins expanding over the next two years (though could be under pressure in near term)," Nuvama said.
"Immediate support situated at 19,500. A further decline below this level could potentially lead the index towards the range of 19,150 to 19,000. On the upside, the zone between 19,600 and 19,650 is expected to act as a strong resistance. A move above 19,650 could trigger short-covering in the market," said Rupak De, Senior Technical analyst at LKP Securities.
"43,500 level is regarded as decisive. A breach below 43,500 is anticipated to trigger additional selling pressure in the market. On the other hand, if this level manages to hold on a closing basis, it could prompt a substantial short-covering rally. The potential target for such a move is around 44,500, where there is a notable accumulation of open interest on the call side," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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