Produced by: Prashun Talukdar
Designed by: Manoj Kumar
Domestic benchmarks returned to the negative territory on October 17 (Wednesday). The 30-share BSE Sensex pack tanked 551 points or 0.83% to close at 65,877, while the broader NSE Nifty index moved 140 points or 0.71% down to settle at 19,671. India VIX, fear index, rose 2.82% to 10.97-level.
For October 19 (Thursday), share market analysts from a few brokerages have assigned 'Buy' calls on HDFC Bank, L&T Finance, CEAT and PCBL. Check share price targets, analysis, investment rationale and other crucial details about these fundamental bets.
LTP: Rs 1,519.70
Analysts at Prabhudas Lilladher (PL) have given a 'Buy' call on HDFC Bank shares with target prices of Rs 2,025. The stock has slipped 6.72% in 2023 so far.
"HDFC Bank saw good quarter; NIM was 4bps higher to PLe at 3.66% and core PPoP was a 2.9% beat owing to better fees. Loan growth at 5.0% QoQ was broad based led by CRB/agri/retail/corporate. Asset quality was stable with GNPA at 1.34% (-6bps QoQ) and controlled net slippages. We believe margins have bottomed out as excess cash has already been drawn down which should normalize NIM in H2FY24E," the brokerage stated.
LTP: Rs 137
Nuvama has selected L&T Finance Holdings in its stock recommendations. The domestic brokerage has given a 'Buy' call on the counter with a target price of Rs 160 per share. The stock has surged 52.65% on a year-to-date (YTD) basis.
"Given its leadership in many retail segments, creditable management and successful rundown of wholesale loans (in the face of scepticism) a full three years ahead of schedule, L&T Finance is, in our view, a compelling story set to turn in an RoA of 2.5% by FY25E (FY23: 1.5%). This, we argue, shall trigger the stock’s re-rating," Nuvama stated.
LTP: Rs 2,193.15
Nuvama has also picked CEAT is its fundamental bets. The brokerage has given a 'Buy' rating on the counter with a target price of Rs 2,560. The scrip has risen 34.60% in 2023 so far.
"In Q2 FY24, CEAT posted a robust EBITDA of Rs 460 crore, beating estimates, driven by improved net pricing and mix. Factoring in better margin assumptions, we are raising FY24E/25E EBITDA forecast by 7%/2%. For FY23–26E, we expect a revenue CAGR of 8%, supported by growth across the OEM, replacement and export segments. Besides, better net pricing and scale shall boost profitability, driving an EBITDA CAGR of 23% over FY23–26E," Nuvama mentioned.
LTP: Rs 202.85
PCBL is the last technical bet from Religare for today. He has given a 'Buy' rating on the counter with target prices of Rs 1,280-1,320. The scrip has risen 37.66% in 2023 so far.
"Bears remain at the helm as Nifty witnessed selling pressure throughout the day. The index found resistance at 19,850, which led to a fall towards 19,650. Going forward, the index may witness a range-bound move until it breaks out in either direction. A fall below 19,650 might give bears more strength and the Nifty might fall down towards 19,250. On the higher end, a decisive move above 19,850 might open the way towards 20,200," said Rupak De, Senior Technical analyst at LKP Securities.
"Nifty Bank experienced a bearish phase, encountering strong resistance at 44,500, where the highest open interest is concentrated. The weak undertone in the market suggests a preference for selling on price rallies, and a breach of the 43,800 support level is expected to lead to further selling pressure. The index's position below the 20-DMA reinforces the bearish sentiment in the near term," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position.