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Domestic equity markets ended the second session of 2024 on a weak note amid global concerns. Sensex dropped 379.46 points, or 0.53 per cent, to settle at 71,892.48 and Nifty50 shed 76.10 points, or 0.35 per cent, to 21,665.80.
For January 3(Wednesday), brokerages have assigned 'Buy' calls on Zomato, BHEL, Bank of Baroda and SBI. Check share price targets, analysis, investment rationale and other crucial details about these stock bets.
Target price: Rs 168 CLSA said it gives Zomato's food delivery business 15 times EV/Ebitda multiple, in in-line with Chinese food delivery company Meituan and global food delivery company Delivery Hero. It assigned Zomato's Quick commerce business 12 times EV/Ebitda multiple, a 20 per cent discount to food delivery business. Besides, CLSA assigned a 5 times EV/Ebitda multiple to the Hyperpure business.
Target price: Rs 230 Antique Broking has assigned a buy call to the stock. The brokerage said a potential turnaround story is unfolding and BHEL is well positioned to win NLC's Talabira project. The order intake will exceed Rs 60,000 crore in FY24 if NLC order closed before March. The order intake may surge to Rs 1.8 lakh crore during FY24-26, 3x the orders in 3 years preceding FY24.
Target price Rs 800 Foreign broking firm Jefferies expects a healthy 6-15 percent volume CAGR over FY24-26 for JSW Steel. It believes JSW Steel's valuation is expensive and hence has a lower target than the consensus.
Price target: Rs 255 "We believe current valuations of 0.9x FY25E ABV are attractive and believe BoB is ripe for re-rating, especially given its growth potential. We value BoB at 1.1x FY25E ABV to arrive at a target price of Rs255/share," said Axis Securities.
Target price: Rs 800 Axis Securities is bullish on the banking stock. "We believe despite the margin pressures, SBI remain well poised to deliver RoA/RoE of 1%/15-17% over FY24-25E supported by stable credit costs and steady cost ratios. We maintain our BUY rating on the stock with a target price of Rs 800/share (core book at 1.2x Sep’25E and subsidiaries at Rs 192/share," said the brokerage.
Target price : Rs 1450 Axis Securities said, "We believe Varun Beverages is expected to continue its strong growth momentum on account of 1) Normalcy of operation and market share gains of newly acquired territories post COVID-19 disruptions, 2) Expansion in its distribution reach to 3.5 Mn outlets in CY23 from 3 Mn currently, 3) Focus on expanding high-margin Sting energy drink across outlets coupled with increased focus on expansion of Value Added Dairy, sports drink (Gatorade) 4)strong growth in the International geographies"
Prashanth Tapse, Senior VP (Research), Mehta Equities said, “Profit taking in banking, IT, auto and realty stocks took a toll on the markets, as expensive valuations prompted investors to pare their holdings on Tuesday. The biggest negative catalyst: COVID-19 sub-variant JN.1 cases have seen a surge throughout India. Strictly speaking, if last two days trading action on Dalal Street is any indication then volatility could be seen going ahead. From a technical perspective, Nifty’s aggressive upside targets are at 22000 mark, while the line in the sand is at Nifty’s make-or-break support at 21487 mark."
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "To resume the upward trend and regain positive momentum, the index needs to achieve a breakout above the resistance at 48300, targeting levels of 49000/50000. The immediate support for the index is positioned at 47600, coinciding with its 20-day moving average (20DMA). A decisive breach below this level could intensify the downward momentum."
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